NA Panel Accuses Govt of Illegal Crypto Launch in Pakistan

The National Assembly Standing Committee on Finance on Thursday seriously questioned the government’s decision to form Pakistan Crypto Council (PCC) and allocate 2,000MW electricity despite the digital asset being officially banned and not recognized by the central bank as legal tender. The meeting summoned all members of the newly formed PCC and officials from the Ministry of Energy for the next session to clarify the government’s crypto-related plans. Finance Secretary Imdadullah Bosal also pointed out that cryptocurrencies remain illegal in Pakistan and are not recognized as legal tender. The committee recalled that no legal or regulatory framework currently exists. An attempt was made to legalize crypto by amending the State Bank Act, but nothing definitive exists to discuss it. One committee member urged the government to publicly caution citizens against investing in crypto while it’s still banned. He said the government should clearly state that investment in cryptocurrencies is at the public’s own risk. Another member said that globally, crypto is treated as a commodity, not a currency. Other members also argued that 2,000 megawatts of electricity had been allocated to crypto operations. They complained that on one hand authorities say it’s illegal and on the other, their allocating power. Why isn’t the State Bank looking at it, and why is the government pushing it, they questioned Concerns were also raised about PCC’s credibility and influence. After some time, dollars will start flowing out of the country due to crypto, another member warned. The committee demanded a comprehensive briefing from the Finance Minister, central bank Governor, and the Prime Minister’s Special Assistant Bilal Bin Saqib. Until a regulatory framework is in place and a final decision is made, the government must issue a clear position, the committee chairman added.