Pakistan is preparing to legalise cryptocurrency trading to attract international investment and boost its digital economy, Bloomberg reported.
The move comes after the recent appointment of Bilal Bin Saqib as the chief advisor to the finance minister on digital asset management.
Pakistan, the world’s fifth most populous country, has seen a surge in cryptocurrency adoption despite regulatory uncertainty and central bank warnings about its risks.
In an interview with Bloomberg TV, Pakistan Crypto Council CEO Bilal Bin Saqib stated that the government aims to introduce a comprehensive regulatory framework for digital assets to encourage investment and foster innovation.
"Pakistan is done sitting on the sidelines," said Saqib. "We want to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30. We have a Web3 native workforce ready to build."
The country ranks ninth globally in terms of crypto adoption, according to blockchain analysis firm Chainalysis. Saqib estimated that 15 to 20 million Pakistanis are currently engaged in crypto trading, despite the absence of a formal regulatory framework.
Changing approach towards digital assets
Pakistan’s crypto industry has faced regulatory hurdles in recent years. In 2018, the State Bank of Pakistan (SBP) issued a circular banning financial institutions from processing cryptocurrency transactions. However, as digital assets gained global traction, authorities in Pakistan started re-evaluating their stance.
The appointment of Bilal Bin Saqib signals a policy shift, with the government now looking to establish a structured legal framework instead of outright restrictions.
Industry experts believe that regulating crypto could unlock foreign direct investment (FDI) opportunities and create new revenue streams for the economy. Neighboring India and the UAE have already introduced digital asset regulations, and Pakistan is looking to follow suit to stay competitive in the region.
Political and global influences
The renewed push for crypto regulations also coincides with global political developments. In the United States, Donald Trump’s pro-crypto stance has influenced international markets, prompting many countries to take a more favourable approach toward digital assets.
"Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit," Saqib told Bloomberg.
The growing recognition of digital assets in Singapore, Hong Kong, and the UAE has also played a role in encouraging Pakistan to move towards legalisation.
AI and digital innovation in public sector
Besides cryptocurrency, Saqib’s advisory role includes exploring artificial intelligence (AI) applications in government operations. His mandate involves:
Enhancing government efficiency through AI-driven automation
Optimising decision-making processes with data analytics
Driving innovation in public sector governance
The government sees AI and blockchain technology as crucial tools to modernise the economy, increase transparency, and improve digital governance.
While Pakistan has not yet announced a timeline for implementing crypto regulations, experts believe the government will engage stakeholders, including the central bank, financial institutions, and the crypto community, to draft policies.
A formal legal framework would not only mitigate risks associated with digital assets but also encourage innovation in financial technology (fintech), Web3 applications, and decentralised finance (DeFi).
With a young, tech-savvy population and increasing global interest in digital assets, Pakistan’s decision to regulate crypto could mark a turning point in its economic transformation. However, challenges such as anti-money laundering (AML) compliance, taxation, and consumer protection will need to be addressed before the framework is finalised.
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