Introduction
A storm is brewing in Pakistan’s financial and political corridors. The recent decision by the government to form the Pakistan Crypto Council (PCC) and allocate a staggering 2,000 megawatts of electricity for crypto-related operations has sparked outrage in the National Assembly Standing Committee on Finance. Critics claim the move is illegal, hypocritical, and dangerously unregulated — especially given that cryptocurrencies remain officially banned in Pakistan.
In this blog, we unpack the unfolding drama, analyze the government’s controversial crypto stance, and explore what lies ahead for digital assets in the country.
The Crypto Conundrum: Banned Yet Promoted?
Government Moves Forward with PCC Despite Ban
On Thursday, a National Assembly session took a sharp turn when members questioned the logic — and legality — of launching a crypto initiative in a country where digital currencies are not only unregulated but also explicitly banned by the State Bank of Pakistan (SBP).
The core of the controversy is the formation of the Pakistan Crypto Council, a government-backed body that appears to be laying the groundwork for crypto operations, albeit without any legal status or parliamentary approval.
What Is the Pakistan Crypto Council?
Little is publicly known about the PCC, which has only recently come into existence. It reportedly aims to provide guidance, structure, and strategic vision for cryptocurrency adoption in Pakistan. However, critics argue that creating such a body while the legal framework remains undefined is not only premature but also potentially illegal.
Electricity Allocation Raises Eyebrows
2,000MW Power for Crypto Mining?
Possibly the most baffling part of this crypto puzzle is the reported allocation of 2,000 megawatts of electricity to support crypto mining and related operations — a massive energy commitment in a country that routinely struggles with energy shortages and load shedding.
Lawmakers raised the alarm over this apparent contradiction. If cryptocurrency is illegal, why is such a significant energy resource being diverted to it?
One parliamentarian aptly questioned: “How can you justify allocating national resources to something the State Bank doesn’t even recognize?”
Government’s Position: Ambiguity and Inconsistency
Finance Secretary’s Clarification
Finance Secretary Imdadullah Bosal confirmed what everyone already knew: cryptocurrencies are not recognized as legal tender in Pakistan. This declaration should, in theory, render any public crypto-related initiative moot — but evidently, it hasn’t.
Attempted Legal Reforms
There was reportedly an effort to amend the State Bank Act to pave the way for legalizing digital currencies. However, no official update or framework has been adopted, leaving the crypto sector in a legal gray area — a space that invites speculation, risk, and potential corruption.
Parliament Demands Accountability
Who Is Behind the Push?
In a rare display of bipartisan concern, committee members have demanded full transparency from key stakeholders:
- The Finance Minister
- The Governor of the State Bank of Pakistan
- Bilal Bin Saqib, the Prime Minister’s Special Assistant
Each of these officials is expected to provide a comprehensive briefing in the next committee session to clarify the government’s crypto strategy, explain the formation of PCC, and justify the allocation of public resources.
Public Risk and Misinformation
Crypto as a Commodity or Currency?
A major point of debate lies in the classification of cryptocurrencies. Globally, they are increasingly treated as commodities, like gold or oil. However, in Pakistan, the legal treatment remains ambiguous, creating confusion among the public.
One committee member insisted that the government should issue a public warning discouraging investment in crypto due to its unregulated nature and lack of investor protection.
Without a regulatory framework, ordinary citizens are vulnerable to scams, losses, and market manipulation.
The Way Forward: Regulation or Repression?
Time for a Clear Policy
It’s evident that Pakistan is at a crossroads. While the global crypto market continues to grow, the country remains stuck in a loop of indecision and contradiction. Policymakers now face a choice:
- Regulate and embrace crypto, with proper safeguards and compliance measures.
- Continue banning it, but enforce the ban consistently without secretly promoting its use.
Long-Term Implications
Without clarity, there are real consequences. One committee member warned that if the government’s crypto activities go unchecked, foreign currency reserves may begin to flow out of the country, further destabilizing Pakistan’s fragile economy.
The crypto industry has potential — from financial inclusion to technological innovation — but without regulation, it could do more harm than good.
Conclusion
Pakistan’s crypto journey has taken a controversial turn. By simultaneously promoting and outlawing digital currencies, the government has placed itself in a precarious position. As the National Assembly Committee seeks answers, the public deserves clarity, transparency, and above all, a cohesive crypto policy.
The next few weeks will be critical in shaping the future of crypto in Pakistan. Will the country step into the digital age responsibly, or will it retreat into regulatory paralysis?
Only time will tell.
