Government weighs capital gains, transaction and holdings-based taxation as digital assets move toward formal regulatory framework
ISLAMABAD, June 4, 2026 — Pakistan is preparing to introduce a formal tax and regulatory framework for cryptocurrency transactions as part of the federal budget 2026–27, in what would mark one of the country’s first structured attempts to bring digital assets into the tax net.
Preparations for the upcoming budget have entered their final phase, with authorities reportedly considering measures to broaden the tax base by covering emerging digital financial instruments alongside traditional sectors.
According to official sources, policymakers are evaluating multiple taxation models for cryptocurrency, including levies on transaction values, capital gains or profits, and overall holdings of digital assets.
The proposed framework aims to document the rapidly expanding crypto ecosystem while improving transparency and encouraging safer investment practices within the sector.
Officials acknowledge, however, that tracking and repatriating cryptocurrency assets held abroad by Pakistani users remains a major challenge due to the decentralised and cross-border nature of digital currencies.
A recent report by the Federal Tax Ombudsman highlighted a sharp rise in global and domestic adoption of digital currencies, estimating around 560 million users worldwide and approximately 9 million users in Pakistan, placing the country among significant adopters.
The growing user base has strengthened the government’s case for formal taxation, as authorities seek to integrate the largely undocumented sector into the broader fiscal system to support revenue mobilisation efforts.
Economic experts say that while regulating cryptocurrencies presents technical and administrative challenges, a well-designed framework could potentially generate meaningful tax revenue and reduce risks associated with unregulated digital finance.
Officials said consultations are ongoing, and final proposals are expected to be included in the budget 2026–27 as part of broader fiscal reforms aimed at expanding the tax base and modernising financial regulation.
