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Pakistan has quietly become one of the biggest players in the global cryptocurrency space, now ranking third in the world, with an estimated 40 million citizens holding crypto accounts.
Speaking before the Senate Standing Committee on the Cabinet Secretariat on Monday, Bilal Bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), said the country’s youth have grown increasingly fluent in digital currencies, driven largely by a desire for greater financial independence. The session, chaired by Senator Rana Mahmood-ul-Hassan, also touched on the pricing and taxation of imported mobile phones.
One figure that stood out in the briefing: while roughly 40 million Pakistanis now hold crypto accounts, the country’s active taxpayer base sits at just around six million — a gap Bilal pointed to as a key challenge. He explained that PVARA was set up precisely to close that divide, bringing crypto users into the tax net while putting proper regulation around the fast-growing virtual assets industry.
The authority, he added, is still in its early stages operationally — building out its permanent staff and having used only about 8% of its allocated budget so far. Looking ahead, he said Pakistan hopes to position itself as a leader in Islamic finance built around digital assets, alongside plans to channel foreign remittances through digital platforms.
Bilal placed Pakistan’s moves in a broader global context, noting that countries like the UAE, Thailand, and Singapore are experimenting with alternative currency models, while Hong Kong has already issued blockchain-based bonds. His view: trying to ban the technology outright would essentially mean holding the country back. He mentioned that a number of international firms have already applied for no-objection certificates to operate in Pakistan’s digital currency market — and cautioned that starting September 5, authorities plan to crack down firmly on companies operating illegally in this space.
The committee then turned to mobile phone taxation. Officials from the Pakistan Telecommunication Authority (PTA) said Customs still needs to work out a clearer system for valuing imported handsets. In response, the committee instructed Customs to come up with a proper mechanism and recommended an immediate cut in taxes on imported phones.
Senator Abdul Qadir went a step further, questioning whether phones should be taxed at all. Meanwhile, officials from the Federal Board of Revenue (FBR) reminded the committee that decisions on imposing or removing taxes ultimately rest with Parliament. The committee has since asked both the FBR and the Tariff Commission to submit detailed reports on the matter. Separately, PTA officials noted that 35 companies currently manufacture smartphones locally.
Several senators used the session to voice broader concerns. Senator Saadia Abbasi argued that policy should focus on supporting businesses rather than squeezing consumers through added levies. Senator Dilawar Khan criticized what he sees as a lack of long-term thinking in the country’s policy approach.
Cabinet Secretary Kamran Ali Afzal offered a more optimistic note, describing digital payments as a genuine revolution in how the country handles transactions — though he pushed back against the idea of applying sales tax to mobile phones.
The committee has requested a follow-up briefing from PVARA to dig deeper into the state of the digital assets sector.
