ISLAMABAD: Pakistan is considering imposing a 10-20 percent tax on profits from cryptocurrency trading in the upcoming federal budget, an official with direct knowledge of the discussions told Arab News, as the government moves to formalize and regulate the country’s digital asset market.
The proposal comes as Pakistan prepares to launch a legal framework for cryptocurrency trading and faces pressure to broaden its tax base under a $7 billion International Monetary Fund (IMF) program. Officials say the IMF has pushed Islamabad to ensure digital assets are brought under the country’s tax regime as crypto activity moves into the formal economy.
“The Pakistan Federal Board of Revenue (FBR) wants to ensure that the tax rate remains consistent with other tax regimes being implemented across the country,” the official, who declined to be named, said.
“The tax on capital gains at the Pakistan Stock Exchange (PSX) is one such example. The final tax rate will range between 10 percent and 20 percent, subject to a final decision by the FBR.”
Under Pakistan’s current tax framework, capital gains on listed securities are taxed at 15 percent for registered tax filers, while non-filers pay 30 percent.
The official said the IMF had insisted that cryptocurrency transactions be incorporated into Pakistan’s tax system as authorities develop a regulatory framework for the sector.
Arab News did not receive a response from the FBR on the official’s comments before publication.
However, an FBR official said cryptocurrency transactions are already taxable under existing laws.
“The mining of digital coins is treated as business income, and gains on sales are treated as capital gains,” the official told Arab News.
He said Pakistan’s tax laws focus on taxing income regardless of how it is earned.
Earlier this week, an official of the Pakistan Virtual Assets Regulatory Authority (PVARA) told Arab News Pakistanis would be able to legally trade cryptocurrencies within the next few weeks as the country transitions toward a regulated digital asset market.
PVARA granted no-objection certificates to two major international crypto exchanges, Binance and HTX, in December 2025 as part of efforts to bring virtual asset service providers under a formal licensing regime.
Currently, Pakistanis trade cryptocurrencies outside a dedicated legal framework, though officials say PVARA has asked relevant government agencies to refrain from crackdowns while the regulatory system is being finalized.
A third official familiar with the discussions said differences remain between regulators and tax authorities over how heavily the sector should be taxed.
According to the official, PVARA favors a lower tax burden to encourage legal trading and attract investment, while tax authorities are seeking higher rates as the government looks to meet ambitious revenue targets under the IMF-supported reform program.
Pakistan has increasingly promoted digital finance, artificial intelligence and information technology as potential drivers of future economic growth, with policymakers hoping that a regulated crypto market could help attract investment and expand the country’s digital economy.
