ISLAMABAD: The federal government is expected to introduce legislation through the Finance Bill 2026 to bring cryptocurrency transactions into the tax net and improve documentation of digital assets in Pakistan.
According to official sources, the Finance Ministry’s Tax Policy Unit and the Federal Board of Revenue (FBR) are developing an initial framework to regulate and tax crypto-related activities. The proposed system aims to integrate digital assets into the country’s broader fiscal structure while encouraging investment and preventing misuse.
Officials say one of the biggest challenges is documenting cryptocurrency transactions, particularly those involving unregistered individuals and assets held abroad. The government is also examining ways to tax profits, capital gains, and assets generated through digital currency trading.
Among the proposals under review is expanding the scope of capital gains taxation under the Income Tax Ordinance to cover cryptocurrency transactions. Policymakers are also considering incentives and balanced tax rates to support market growth.
Experts believe a clear legal and taxation framework could broaden the tax base, improve revenue collection, and bring Pakistan’s rapidly growing cryptocurrency sector under effective regulation without discouraging innovation.
