Pakistan’s finmin departs for Hong Kong to take part in Asian Financial Forum

ISLAMABAD: Pakistan has introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF), the country’s top investigation agency said on Thursday.
The new policy, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, is meant to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan.
The move follows the establishment of the Pakistan Crypto Council last month to create a legal framework to create a legal framework for cryptocurrency trading in a bid to lure international investment. 
Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are also not illegal or banned. As of Jan. 16, 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
“Pakistan has formulated its first-ever comprehensive policy framework for the regulation of Virtual Assets and Virtual Asset Service Providers,” the Federal Investigation Agency (FIA) said in a statement. 
The policy will be scrutinized by stakeholders and legislative proceedings before being implemented in phases from next year.
The policy aims to curb money laundering, terrorism financing, financial instability and the potentials of blockchain-based finance and also provide space for innovation and develop institutional expertise. 
“This is a paradigm shift in how Pakistan views digital finance,” FIA Director Sumera Azam was quoted in the statement as saying. “The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”
She added that the framework aligned with FATF Recommendation 15 on compliance and financial integrity.
FATF Recommendation 15, titled “New Technologies,” ensures that AML and CFT frameworks are adaptable to emerging financial technologies, including virtual assets and virtual asset service providers.

ISLAMABAD: State Minister for Interior Talal Chaudhry said on Thursday the government was not considering extending the deadline for illegal foreigners to leave the country, with over 850,000 people repatriated since a deportation drive was launched in late 2023. 
Earlier this year, Pakistan’s interior ministry asked all “illegal foreigners” and holders of Afghan Citizen Cards — a document launched in 2017 to grant temporary legal status to Afghan refugees — to leave the country before Mar. 31, warning that they would otherwise be deported from April 1. The move is part of a larger repatriation drive of foreign citizens that began in November 2023.
Pakistan has expelled more than 8,000 Afghan nationals in the past week in a fresh repatriation drive after the expiry of a March 31 deadline, the UNHCR said on Tuesday. 
“The first and foremost thing I want to share with you is that there is no deadline extension [to deport illegal foreigners] being considered or given, nor will there be any extension,” Chaudhry said at a press conference, saying 857,157 people had been repatriated since 2023, including those residing in Pakistan illegally and ACC holders.
“Particularly in the case of Afghan nationals, this decision had to be made after considering some ground realities,” he said, accusing Afghan nations of being involved in militant attacks, narcotics trade and other crimes.
Last year was the deadliest year in almost a decade in Pakistan, with more than 1,600 people killed in militant attacks, nearly half of them security forces personnel, according to the Islamabad-based Center for Research and Security Studies. 
Pakistan accuses the Taliban government of failing to root out militants sheltering on Afghan soil, a charge Kabul denies, saying it does not allow its territory to be used by militants against Pakistan. It also says Afghan nationals are not involved in terrorism and other crimes in Pakistan and Islamabad’s security and criminality issues are a domestic problem.