The growth and adoption of cryptocurrencies have seen a major push from developing and underdeveloped nations. In recent developments, a known media outlet reported that Pakistan is planning to legalize digital assets/ cryptocurrencies.
In a news article published on November 03, 2024, The Express Tribune has written that the federal government has proposed several amendments to the State Bank of Pakistan Act to allow dual nationals to serve as governor and deputy governors of the central bank and to legalize digital currency use in Pakistan.
As per the additional information, if the proposed amendments get approval from the parliament and federal cabinet, there is a chance that cryptocurrencies such as Bitcoin and Ethereum might become legal in Pakistan.
According to the proposed amendment, “a digital form of currency issued by the bank under section 24 as legal tender under section 25.” The surge in the adoption of cryptocurrencies worldwide has transformed its image, and there are expectations that the global cryptocurrency user count will touch new milestones in the coming years.
The media outlet further cited an unknown authority noting that the Finance Ministry has proposed dozens of amendments to the State Bank of Pakistan (SBP), The proposed amendments would allow dual nationals to serve as governors, deputy governors, and non-executive directors on the central bank’s board.
The proposed amendment suggests removing the term “having dual nationality” from this section, thereby lifting the restriction.
Finance Minister Muhammad Aurangzeb recently highlighted the importance of broadening the talent pool for leadership roles. Speaking at a Senate Finance Committee meeting, he noted that nationality restrictions could pose a limiting factor that needs to be reconsidered.
Pakistan aims to boost the economy with cryptocurrencies!
Speaking to the media, Nawaz Sharif stated that economic indicators are reflecting signs of recovery. He added that Prime Minister Shehbaz Sharif has tried to guide the country from the economic crisis.
Industrial estates across Sindh’s districts, such as Hyderabad, Larkana, Shaheed Benazirabad, and Badin, are grappling with high operational costs, elevated energy tariffs, increasing rents, costly tanker water, inflated logistics, inadequate road and sewer infrastructure, inflation, and pressures from IPPs.
Statista data shows that Pakistan’s gross domestic product (GDP) in current prices grew by 37.1 billion U.S. dollars, a 10.99 percent increase, in 2024. This brought the total GDP to 374.6 billion U.S. dollars for the year.
Pakistan is among the nations with weak financial conditions; for the past few quarters, the nation has been battling inflation and a huge financial crisis, but before these proposed amendments, the nation was a critic of cryptocurrencies and related products.
However, it is worth noting that, despite any structured set of rules and regulations for digital assets, the usage of cryptocurrencies for illicit activities has been constantly surging in the nation.
As per international finance exports before Pakistan, several countries have legalized cryptocurrency usage to improve their national financial structure. El Salvador became the first nation in the world to legalize the usage of Bitcoin.
The FPCCI has proposed a tax on converting cryptocurrencies to Pakistani rupees, including a 5% tax on cashing out cryptocurrencies held in foreign exchange accounts and a 10% tax on those held in Roshan Digital accounts.
