In Pakistan, cryptocurrency is legal but lacks a specific legal classification, meaning it is treated under existing general income tax provisions. There is no dedicated legal framework for digital assets currently in force. The Federal Board of Revenue (FBR) governs taxation in Pakistan. Due to the absence of crypto-specific legislation, income and gains derived from cryptocurrency are currently subject to the country's general income tax laws. Individuals are subject to progressive income tax rates ranging from 0% to 35% on income generated from crypto. Capital gains from cryptocurrency are also treated as general income, falling under these same progressive tax brackets, with no specific benefit or reduced rate for long-term holdings. Converting crypto to fiat currency or swapping crypto for another crypto asset are both considered taxable disposal events under these general rules. The standard corporate tax rate for entities dealing in crypto is 29%. A general sales tax of 17% may apply to services related to cryptocurrency transactions. Staking rewards are taxed as ordinary income at the progressive individual income tax rates up to 35%. Income from crypto mining is also treated as business or other income, with the potential for related expenses to be deductible under general tax rules. Decentralized finance (DeFi) activities and Non-Fungible Tokens (NFTs) are not specifically addressed in current tax law, but income derived from them would likely be subject to general income tax provisions. Pakistan is in the midst of significant regulatory changes. The Federal Board of Revenue began consultations in October 2025 to draft legislation for the regulation and taxation of cryptocurrency. The Virtual Assets Ordinance 2025 has also been approved, signaling a move towards a more defined legal and tax framework for digital assets in the near future.
Tax Rates
| Effective individual rate | 0 |
| Capital gains tax | 0-35% (treated as general income, no long-term benefit) |
| Income tax on crypto | 0-35% (progressive rates apply to crypto income) |
| Corporate tax | 29% |
| VAT | 17% (general sales tax may apply to services) |
Activity Taxes
| Staking | Taxed as ordinary income at progressive rates up to 35% |
| Mining | Taxed as business/other income, expenses potentially deductible |
| DeFi | Not specifically addressed, general income tax likely applies |
| NFTs | Not specifically addressed, general income tax likely applies |
Taxable Events
| Crypto → Fiat | Taxable as capital gain or income under general rules |
| Crypto → Crypto | Taxable as disposal under general capital gains/income rules |
Holding Period
| Holding period benefit | None, no reduced rate or exemption for long-term holding |
Sources