Country overview

#115

Pakistan

Country stats

Rating Points

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

6.4%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

14 809 600

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

163.5

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Ban

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Ban

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

High danger

The overall level of security in a given country based on open data.

Crypto Salaries

Ban

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

No data

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Ban

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

No licenses exist

Good

Medium

Bad

intro

Pakistan has a large population and high inflation, and cryptocurrencies are prevalent here, just like neighboring India. At the same time, they are officially banned.

Security level

According to our rating, Pakistan has a high level of security. The jurisdiction has 58.2 points (from 100) for safety in Numbeo crime rating (1). The homicide level (2) is 4.2 per 100,000 inhabitants a year.

Crypto Payments

However, as of October 2021, the State Bank of Pakistan has issued a circular requiring all banks and financial institutions to block cryptocurrency transactions in the country. The circular also declared that cryptocurrency is not legal tender in Pakistan and warned against the risks associated with its use.

Crypto Salaries

Paying salaries in cryptocurrency is also prohibited in Pakistan.

Legal

In 2018, Pakistan banned (3) crypto. In 2020, as a part of FATF's recommendations, Pakistan reviewed cryptocurrency regulations, focusing on their use in tax evasion. They are still under consideration, even as Pakistan has been removed from FATF's gray list. In 2021, a regional High Court ordered a study of whether Pakistan's legal system could make the use of cryptocurrency permissible. The report stated that cryptocurrencies are volatile and speculative and could raise illicit finance concerns. In a speech in February 2022, the Governor of the Central Bank laid out similar concerns. Reports in May 2022 revealed that Pakistan had formed several committees that will evaluate legislative options to legalize cryptocurrencies. Lacking any clarity on jurisdiction and enforcement, Pakistan's domestic adoption ranks sixth in the world.

In Pakistan, the Central Bank of Pakistan (4) (SBP) and the Securities and Exchange Commission of Pakistan (SECP) regulate the crypto industry.

Earlier, the State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Information Technology and Telecommunication proposed (5) a complete ban on crypto-based transactions.

The Pakistani government does not recognize (6)crypto as legal tender. There are no laws defining the tax system for cryptos.

Taxation

Tax name	Index
PIT tax Min	2,5
PIT tax Max	35
Corporate tax (CIT)	29
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	35
Wealth tax Min	0
Wealth tax Max	0

PIT

In Pakistan, income tax slabs (7) are based on an individual’s annual taxable income. The slabs are determined by the amount of income earned during the year. The government of Pakistan has finalized tax slabs for salaried individuals for the fiscal year 2022-23. It has set a minimum income tax rate of 2.5% for those earning up to Rs. 100,000 per month and a maximum of 35% for individuals earning a monthly salary over Rs.1 million.

CIT

Currently, the Corporate Income tax rate (8) is 29% for tax year 2019 and onwards, whereas the corporate tax rate is 35% for Banking Industry for TY 2019.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Pakistan's remarkable journey towards cryptocurrency adoption. Article

4)Central Bank of Pakistan. PDF-file

5)PTA opposes banning cryptocurrencies. Article

6) IS BINANCE P2P LEGAL IN PAKISTAN. Article

7)Income Tax Slab In Pakistan 2022-2023. Article

8)Taxation in Pakistan. Wiki

Articles

article

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Overview of current legal status of crypto payments in UAE

intro

Pakistan has a large population and high inflation, and cryptocurrencies are prevalent here, just like neighboring India. At the same time, they are officially banned.

Security level

Crypto Payments

Crypto Salaries

Paying salaries in cryptocurrency is also prohibited in Pakistan.

Legal

In Pakistan, the Central Bank of Pakistan (4) (SBP) and the Securities and Exchange Commission of Pakistan (SECP) regulate the crypto industry.

The Pakistani government does not recognize (6)crypto as legal tender. There are no laws defining the tax system for cryptos.

Taxation

Tax name	Index
PIT tax Min	2,5
PIT tax Max	35
Corporate tax (CIT)	29
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	35
Wealth tax Min	0
Wealth tax Max	0

PIT

CIT

Currently, the Corporate Income tax rate (8) is 29% for tax year 2019 and onwards, whereas the corporate tax rate is 35% for Banking Industry for TY 2019.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)Pakistan's remarkable journey towards cryptocurrency adoption. Article

4)Central Bank of Pakistan. PDF-file

5)PTA opposes banning cryptocurrencies. Article

6) IS BINANCE P2P LEGAL IN PAKISTAN. Article

7)Income Tax Slab In Pakistan 2022-2023. Article

8)Taxation in Pakistan. Wiki