In recent developments, Pakistan’s Ministry of Finance has taken the helm in regulating virtual assets and cryptocurrencies, overshadowing the Ministry of Science and Technology’s earlier efforts. Under the leadership of Dr. Khalid Maqbool Siddiqui, the Science Ministry had been collaborating with a diverse working group of senior officials from approximately 16 stakeholders, including the ministries of IT, finance, and foreign affairs, as well as regulatory bodies like the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan. This coalition aimed to draft comprehensive regulations for virtual assets in the country.
The group’s mandate was rooted in specific clauses of the 1973 Rules of Business, which assign the Science Ministry responsibilities such as promoting scientific and technological advancements and fostering international collaborations. However, the Rules also stipulate that any matter involving finance requires prior consent from the Finance Ministry before reaching the federal cabinet. Leveraging this provision, the Finance Ministry recently advanced a proposal for the establishment of the Pakistan Crypto Council, notably excluding the Science Ministry from these discussions.
Further consolidating its position, the government appointed British Pakistani entrepreneur Bilal Bin Saqib as the chief adviser to the finance minister on digital assets, a role he will undertake pro bono. This strategic move underscores the Finance Ministry’s intent to steer the direction of cryptocurrency regulation in Pakistan, sidelining the Science Ministry’s prior initiatives.
