No evidence of crypto use in hawala or unlawful transactions in Pakistan: Tariq Fazal

ISLAMABAD: Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry on Friday informed the National Assembly that the government has formally established the Pakistan Crypto Council under the directives of the Prime Minister to develop a regulatory and operational framework for cryptocurrency in the country.

Responding to questions during the Question Hour, the minister clarified that the government does not intend to either promote or discourage cryptocurrency, but aims to regulate and channel it through a structured legal system to ensure transparency and prevent misuse.

He explained that cryptocurrency is a relatively new concept in Pakistan, and the government prefers to handle it through proper institutional mechanisms rather than ad hoc measures.

“We are working to ensure that crypto-related activities are regulated in a formal, transparent, and lawful manner. The framework being developed will help prevent misuse, including illegal transactions,” he stated.

Dr. Fazal Chaudhry further said that there is currently no evidence of cryptocurrency being used for hawala or other unlawful financial activities in Pakistan. However, the framework is being established to prevent any potential misuse in the future,” he added.

Dr. Fazal Chaudhry said that emerging technologies such as Artificial Intelligence (AI) and other digital innovations are being incorporated into governance and business systems worldwide, and Pakistan is aligning itself with these modern trends.

He said that uninterrupted electricity and necessary support are being provided for IT-related installations and technology-driven sectors.

He further informed the House that a Special Assistant to the Prime Minister has been tasked with supervising cryptocurrency policy formulation to ensure alignment with global standards and technological requirements.

The minister said that all financial reforms will comply with Islamic principles, recalling similar concerns raised when Pakistan introduced interest-free Islamic banking as an alternative to conventional banking.

He invited lawmakers to share input and observations to strengthen the ongoing regulatory process, assuring that all feedback would be reviewed by relevant authorities.