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  "path": "/pakistan-plans-capitalgains-tax-cryptocurrency",
  "publishedAt": "2026-06-06T05:00:01.000Z",
  "site": "https://nukta.com",
  "textContent": "\n\n\n\nPakistan is preparing to impose a capital gains tax on cryptocurrency transactions in the fiscal year 2026-27 budget as part of efforts to bring the rapidly growing digital asset sector into the tax net following consultations with the International Monetary Fund (IMF), according to official sources.\n\nSources said the government is considering a capital gains tax of between 10% and 30% on profits earned from cryptocurrency trading. The measure aims to generate additional revenue while formalizing the taxation of digital asset transactions.\n\nThe proposal follows IMF recommendations that gains derived from digital businesses and virtual assets should be subject to taxation. Sources said the IMF has specifically urged Pakistan to collect capital gains tax on cryptocurrency-related profits.\n\n### Income Tax Amendments Under Consideration\n\nTo implement the proposal, the government is considering amendments to Section 37 of the Income Tax Ordinance, 2001. Sources said a new provision, tentatively designated Section 37C, could be introduced to enable taxation of capital gains earned through crypto transactions.\n\nIf approved, profits from cryptocurrency trading would fall within Pakistan’s income tax framework for the first time.\n\n### Millions of Crypto Users\n\nAccording to sources, around 9 million Pakistanis currently use cryptocurrencies, while the broader digital asset ecosystem may involve between 20 million and 40 million users engaged in various forms of virtual assets.\n\nThe government expects the proposed tax measures to generate billions of rupees in additional annual revenue.\n\n### Regulatory Framework Taking Shape\n\nSources said the government has directed the proposed Pakistan Virtual Asset Regulatory Authority to recommend taxation measures for crypto users. A committee has also been established to assess user numbers, transaction volumes and potential tax collection mechanisms.\n\nThe move comes as Pakistan advances efforts to regulate digital assets and establish a legal framework for cryptocurrency-related activities.\n\n### Digital Currency Plans\n\nAccording to sources, the central bank has decided to recognize virtual assets within a regulated framework and introduce a digital currency ecosystem.\n\nUnder the proposed framework, Pakistani rupees could be converted into digital currency and used to purchase approved virtual assets. Users would also be able to exchange rupee-denominated funds for cryptocurrencies through authorized channels.\n\nHowever, virtual assets would not be permitted for the purchase of goods and services outside the approved ecosystem, sources said.\n\nDigital currency would be issued to licensed entities operating in Pakistan’s virtual asset sector, while a legal framework governing cryptocurrency activities has already been prepared, according to sources.\n\nThe proposed taxation measures are expected to be announced as part of the federal budget for fiscal year 2026-27, scheduled to be presented later this month.",
  "title": "Pakistan plans capital gains tax on cryptocurrency trading in FY27 budget"
}