ISLAMABAD, October 2025 — The Federal Tax Ombudsman (FTO) has urged the Federal Board of Revenue (FBR) to develop a clear legal and fiscal framework for cryptocurrency transactions in Pakistan, emphasizing the need to bring the rapidly growing digital currency sector within the ambit of taxation and financial regulation.
Following the FTO’s directives, the FBR has initiated consultations with national and international experts to formulate legislation that would formally integrate cryptocurrencies into Pakistan’s financial and tax systems. The move aims to ensure transparency, accountability, and effective revenue mobilization from crypto-based activities, which currently remain outside the formal economy.
The Ombudsman’s office highlighted that billions in crypto transactions are being conducted informally, describing this as a “sign of neglect and inattention” on the part of relevant authorities. It cautioned that without regulation, profits and digital assets derived from cryptocurrency dealings would continue to escape documentation and taxation, depriving the national exchequer of substantial revenue.
Pakistan, with nearly nine million cryptocurrency users, ranks among the top six countries globally in terms of adoption. Despite this, the State Bank of Pakistan (SBP) has yet to formally legalize digital currencies, although its 2018 circular did not declare them illegal.
In its recommendation, the FTO called upon the FBR to align Pakistan’s regulatory approach with global standards, such as those established by the Financial Crimes Enforcement Network (FinCEN), which treats crypto miners and traders as financial intermediaries under existing laws. The Ombudsman further advised that cryptocurrency taxation provisions be incorporated into the forthcoming Finance Bill to ensure effective compliance and enforcement.
Experts have endorsed the FTO’s position, noting that regulation of the digital currency sector would help broaden the tax base, reduce revenue leakages, and enhance public confidence in financial governance. The FTO also encouraged the FBR to engage stakeholders, policymakers, and financial experts to develop a robust and future-ready legislative framework for the country’s emerging digital economy.
