The Federal Tax Ombudsman (FTO) has raised serious concerns over the Federal Board of Revenue’s (FBR) inability to bring cryptocurrencies within the tax net, despite Pakistan being one of the leading adopters of digital currencies in the world. According to the FTO Dr. Asif Mahmood Jah, the absence of specific laws and regulatory frameworks is enabling large-scale crypto activity to operate outside the formal taxation system.
Speaking at an awareness session held with members of the business community in Islamabad, FTO Coordinator Saif-ur-Rehman highlighted a complaint from a member of the public who pointed out the increasing usage of cryptocurrencies in Pakistan. The complainant stated a willingness to pay taxes on crypto earnings but expressed frustration over the FBR’s lack of proper rules and procedures that could facilitate such payments.
In its initial response, the FBR’s Policy Wing acknowledged that cryptocurrency is a relatively new and evolving financial area and that a formal stance on the matter would be communicated after due consultation with relevant regulatory agencies. However, this was met with sharp criticism from the FTO, who accused the FBR of neglect, incompetence, and a lack of foresight in addressing a rapidly growing segment of the digital economy.
The ombudsman further noted that despite the increasing scale of commercial crypto activity within the country, the FBR had failed to take timely action. Instead of cooperating with the FTO’s initiative to explore regulatory solutions, the FBR reportedly chose to question the FTO’s jurisdiction, which the ombudsman labeled as counterproductive and dismissive.
The FTO also shared updated statistics showing just how entrenched cryptocurrency has become in Pakistan. The local crypto market is now valued at an estimated $1.6 billion, with the number of users expected to grow to over 27 million in 2025. This makes Pakistan the sixth-largest country in terms of cryptocurrency adoption, underlining the urgency for formal regulatory oversight.
In response to the inaction, the FTO has now directed the FBR to actively engage with the complainant and other relevant stakeholders from both the public and private sectors. The directive emphasizes that the FBR must work toward the inclusion of a structured regulatory and taxation framework for cryptocurrencies in the upcoming Finance Bill. The goal is not only to enhance revenue collection but also to ensure transparency, accountability, and investor protection in the growing crypto space.
With global momentum building toward crypto regulation, the FTO’s intervention has brought renewed attention to Pakistan’s lagging legal infrastructure surrounding digital assets. As crypto adoption in the country continues to rise, the onus is now on policymakers and tax authorities to close the regulatory gap before the informal sector grows too large to manage.
This development adds further pressure on the FBR to fast-track consultations and develop a tax policy that accommodates emerging financial technologies—before Pakistan misses the opportunity to formalize and benefit from a digital economic shift already underway.
