Cryptocurrencies remain outside Pakistan’s tax framework due to the absence of clear laws under the Federal Board of Revenue (FBR), according to Federal Tax Ombudsman (FTO) Dr. Asif Mahmood Jah.
During an awareness session with the business community in Islamabad, FTO Coordinator Saif-ur-Rehman highlighted a complaint raised by a citizen who pointed out the increasing adoption of cryptocurrencies in Pakistan, which now ranks sixth globally in crypto usage.
The complainant expressed readiness to pay taxes on crypto earnings but noted that the FBR has not yet established rules or procedures to support such taxation. In its preliminary response, the FBR’s Policy Wing admitted that cryptocurrency is a new area still under review and said that a formal reply would be issued after consulting relevant authorities.
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However, the FTO strongly criticized the FBR for its lack of action, describing its approach to crypto regulation as negligent, inattentive, and incompetent. The ombudsman stressed that significant crypto-related commercial activity in Pakistan continues to operate outside the tax system due to FBR’s failure to act. He also expressed disappointment that the FBR challenged the FTO’s jurisdiction rather than cooperating on the issue.
Dr. Jah emphasized the urgent need for regulation, citing data that projects Pakistan’s crypto market to reach $1.6 billion with user numbers expected to hit 27.1 million in 2025.
The FTO has now directed the FBR to consult with the complainant and other stakeholders and ensure the inclusion of a regulatory and tax framework for cryptocurrency in the upcoming Finance Bill.
