In a bold policy shift, Pakistan is preparing to legalise cryptocurrency trading in a bid to attract foreign investment and modernise its economy, according to Bilal bin Saqib, the newly appointed CEO of the Pakistan Crypto Council. Speaking to Bloomberg TV, Saqib revealed that the government aims to create a comprehensive regulatory framework that integrates blockchain technology into national systems and welcomes global participation in its digital finance landscape.

This marks a significant departure from the country’s previous stance. For years, Pakistan's central bank has repeatedly issued warnings about the dangers of crypto, citing its use in fraud, money laundering, and its potential to destabilise the financial system. However, with Pakistan now ranked ninth globally in crypto adoption and an estimated 15–20 million citizens already active in digital asset trading, the country is recognising the need to regulate rather than resist.

Saqib said the government acknowledges that ignoring the rapidly growing crypto ecosystem would mean missing out on substantial economic opportunities. The move is also shaped by international trends—countries such as the UAE and the US are increasingly adopting crypto-friendly policies, pressuring Pakistan to remain competitive and not fall behind in the global digital economy.

Pakistan’s decision is partly influenced by broader economic considerations. The country has taken more than 20 loans from the International Monetary Fund (IMF) since 1958, making it the fifth-largest debtor to the IMF. The latest bailout, approved in September 2024 for $7 billion, came with Pakistan promising that it would be its last. To meet that pledge, the government is looking to expand its tax base—one way being through legalising and taxing crypto gains.

Reports suggest that the IMF itself has encouraged the country to bring crypto-related income into the formal tax system. This move could open up a valuable revenue stream for the government, reduce fiscal deficits, and potentially decrease dependence on foreign loans.

To guide this transition, Pakistan recently established the Pakistan Crypto Council (PCC), a high-powered body tasked with shaping the country's crypto regulations and ensuring alignment with international best practices. Headed by Finance Minister Muhammad Aurangzeb, the PCC includes influential figures such as the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan, and top federal officials from the IT and law ministries.

The council’s objectives are clear: establish transparent and enforceable guidelines for crypto trading, safeguard investor interests, ensure financial system stability, promote blockchain-based innovation across industries, and work closely with global crypto institutions.

As global political dynamics evolve, so too does Pakistan’s policy outlook. Saqib pointed out that even pro-crypto sentiments from international leaders, such as Donald Trump, are having a ripple effect on how countries view digital assets. Pakistan, keen to stay aligned with emerging global standards, sees this as the right moment to act.

While India—Pakistan’s neighbour and economic rival—has been hesitant to fully embrace cryptocurrencies, recent reports suggest New Delhi may also be reconsidering its position. If Pakistan moves swiftly and smartly, it could position itself as a regional hub for blockchain innovation and digital finance.

This turning point reflects not just a shift in financial strategy, but a broader recognition that digital currencies and blockchain technology are becoming integral to the future of global finance. For a country in search of economic revival and independence from constant debt cycles, legalising crypto may be a gamble—but it’s one Pakistan is now ready to take.