In 2025, Pakistan made a historic pivot from crypto skepticism to proactive regulation, marking a strategic shift in its digital finance landscape. The government introduced a legal framework aimed at embracing blockchain innovation, attracting foreign investments, and driving digital inclusion. The launch of the Pakistan Crypto Council (PCC) and Pakistan Digital Assets Authority (PDAA) highlights the country’s long-term commitment to crypto.
Pakistan officially initiated the drafting of a detailed regulatory framework for digital and virtual assets.
Based on PCC’s recommendations, the government approved the establishment of the Pakistan Digital Assets Authority (PDAA).
The Extended Fund Facility (EFF) program completed its first review of Pakistan’s economic framework.
Pakistani regulators introduced a compliance-driven crypto framework.
Prime Minister Shehbaz Sharif officially announced the formation of the PCC.
Following discussions with an international delegation, the Finance Ministry presented the concept of a formal crypto oversight body—marking a turning point in Pakistan’s crypto evolution.
Capital Gains Tax (CGT):
Income Tax:
Tax Reporting:
Penalties for Non-Compliance:
Category | Tax Type | Rate/Details (2025) | Reporting & Compliance | Penalties for Non-Compliance |
Traders/Investors | Capital Gains Tax (CGT) | 15% flat on crypto profits; reduces with holding period:- <1 year: 15%- 1–2 years: 12.5%- 2–3 years: 10%- 3–4 years: 7.5%- 4–5 years: 5%- 5–6 years: 2.5%- >6 years: 0% | File Form IT-1Deadline: Sept 30Exchanges to share data with FBR from mid-2025 | ₨10,000–₨50,000Up to 3% of trade valuePossible jail for evasion |
Income Tax | Taxed as regular income:5% (≤ ₨600,000)Up to 35% (> ₨12 million) | Declare income from mining, staking, and payments | Same as above | |
Conversion Tax | Proposed:- 5% for foreign accounts- 10% for Roshan Digital accounts | Not fully implemented | – | |
Small Trades | Possible CGT exemption for trades < ₨50,000 (unconfirmed) | – | – | |
Losses | May offset income tax if reported same year | No CGT offset | – |
Category | Tax Type | Rate/Details (2025) | Reporting & Compliance | Penalties for Non-Compliance |
Crypto Companies | Corporate Tax | 29% on net profits | File Form IT-2 annually with FBR | 3% of unreported trade value20% annual interestProsecution for serious violations |
Transaction Reporting | Mandatory under Section 285BAAAligns with mutual fund/stock exchange norms | KYC/AML complianceDownloadable transaction records for users | Same as above | |
Deductions | Mining and operational expenses deductible | – | – | |
VAT | No VAT on crypto trades (as of 2025) | – | – |
After years of uncertainty, Pakistan has finally stepped into the future of digital finance with bold reforms. With established legal bodies like the PCC and PDAA, progressive tax policies, and the advisory leadership of Binance founder CZ, the country is now poised to lead in the global crypto movement.
Millions of Pakistanis are embracing crypto through P2P transactions, stablecoins, and Bitcoin. The government’s strategy not only boosts foreign investment but also aims to create employment for Pakistan’s youth—ushering in a transformative era for the nation’s digital economy.
Yes, cryptocurrencies are now within Pakistan’s legal structure, not banned. The government is actively regulating them through new authorities like the PCC and PDAA.
Pakistan introduced a comprehensive crypto framework in 2025, establishing the Pakistan Crypto Council (PCC) and Pakistan Digital Assets Authority (PDAA) for regulation and oversight.
Starting July 1, 2025, profits from selling crypto face a flat 15% Capital Gains Tax (CGT). Crypto earned from mining/staking is taxed as regular income (5-35%).
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