Pakistan Considers 15–30% Tax On Cryptocurrency Trading In Budget 2026-27
The federal government is considering bringing Pakistan’s rapidly growing cryptocurrency market into the formal tax system by imposing a capital gains tax on digital asset transactions in the upcoming Budget 2026-27, according to official sources.
The proposed move is part of broader efforts to regulate the cryptocurrency sector, improve documentation of digital transactions and align Pakistan’s financial framework with international standards. Discussions are reportedly taking place in consultation with the International Monetary Fund (IMF), which has emphasized the taxation of profits generated through digital businesses and emerging financial technologies.
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According to sources, authorities are examining a proposal to impose a capital gains tax ranging from 15 to 30 percent on profits earned through cryptocurrency trading. If approved, the measure would formally bring digital asset gains into the country’s tax net and establish a legal framework for taxing virtual asset transactions.
Officials familiar with the discussions said the Federal Board of Revenue (FBR) is reviewing various options for the taxation of cryptocurrency holdings, trading profits and digital assets. The objective is not only to generate revenue but also to improve transparency and documentation within the growing digital economy.
As part of the proposed legal reforms, a capital gains provision relating to cryptocurrency transactions is expected to be incorporated into Section 37 of the Income Tax Ordinance. This amendment would formally classify profits from crypto trading as taxable income under Pakistan’s tax laws.
The proposed framework is also being supported by recommendations from the Virtual Asset Regulatory Authority, which has suggested a range of taxation measures targeting cryptocurrency users and investors. In addition, a special committee has been established to assess the number of crypto users in Pakistan, evaluate transaction volumes and develop suitable taxation mechanisms for the sector.
Officials say the government is simultaneously exploring a broader regulatory framework for digital assets. Under the proposed system, virtual assets could be granted legal recognition, allowing cryptocurrency-related activities to operate within a regulated environment.
The plan may also pave the way for converting Pakistani rupees into approved digital currencies for the purchase and trading of virtual assets, integrating cryptocurrency transactions into the country’s formal financial system.
Government officials acknowledge that one of the major challenges in implementing the new framework will be documenting crypto assets currently held abroad and encouraging users to disclose their holdings. Policymakers are therefore working on proposals that balance taxation, regulation and investor confidence.
The move comes amid growing adoption of digital currencies in Pakistan. According to a report by the Federal Tax Ombudsman, there are approximately 560 million digital currency users worldwide, with an estimated 90 million users in Pakistan, making the country one of the largest adopters of cryptocurrency globally.
Although the State Bank of Pakistan issued a circular in April 2018 warning about the risks associated with virtual currencies, it did not formally declare them illegal. Since then, cryptocurrency usage has continued to expand despite the absence of a comprehensive regulatory and taxation framework.
If approved in the upcoming budget, the proposed measures would mark one of the most significant policy shifts in Pakistan’s approach to digital assets, bringing cryptocurrency trading under formal regulation while creating a mechanism for taxing profits generated through the rapidly growing sector.
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