ISLAMABAD:
The Senate Standing Committee on Finance on Wednesday raised serious concerns over cryptocurrency dealings, taxation pressures, money laundering, and the role of customs, as lawmakers debated the proposed Virtual Assets Bill 2025.
Chaired by Senator Saleem Mandviwalla, the committee heard disclosures that most crypto transactions in the country are being conducted through hundi and hawala channels. Pakistan now ranks eighth worldwide in terms of citizens’ crypto investment, Mandviwalla revealed.
Finance Secretary Imdadullah Bosal admitted that until now, Pakistan had no regulatory framework for virtual assets, but said the government was introducing new rules to ensure transparency.
Senator Mohsin Aziz issued a more alarming warning: cryptocurrency was increasingly being used in kidnapping-for-ransom cases in Pakistan. He said abductors demanded ransom in digital currency instead of cash, a trend that could intensify money laundering risks.
During the meeting, Senator Dilawar Khan criticised the complex tax regime, arguing that multiple levies were crushing the public. He suggested that a uniform 5% tax nationwide could boost collections by 40% despite the lower rate.
Senator Anusha Rahman voiced strong complaints about corruption in customs, saying that people were routinely extorted at 23 checkpoints between Quetta and Taftan. “If customs provided proper facilitation, such complaints would not arise,” she said.
A Law Ministry consultant briefed the committee that the Virtual Assets Bill 2025 would create an independent oversight board, while the Deputy Governor of the State Bank clarified that cryptocurrency currently falls into a legal “grey area”but not illegal. He added that Pakistani youth have shown remarkable expertise in using digital currencies.
