Is crypto mining legal in Pakistan?

Crypto mining in Pakistan is legal and, as of October 2026, actively courted by the government. The Virtual Assets Act 2026 created a licensing system for crypto businesses, but mining coins for yourself sits outside it. The open questions are mostly about electricity price and supply rather than legality.

Is bitcoin mining legal in Pakistan?

Yes. The Virtual Assets Act 2026 made the Pakistan Virtual Assets Regulatory Authority (PVARA) the crypto regulator and set out licence categories for virtual asset services. According to an analysis by the Pakistani law firm ABS and Co, mining-related services are licensable only where mining operations provide services to third parties. Pure mining for your own account is excluded.

That means a person or company running its own rigs does not need a PVARA licence. A business that mines on behalf of customers falls inside the regime. Running an unlicensed virtual asset service can lead to up to five years in prison, a fine of up to PKR 50 million, or both. The wider licensing system is explained in how crypto is regulated in Pakistan.

What is Pakistan's bitcoin mining electricity plan?

In May 2025 the Finance Ministry allocated 2,000 MW of electricity to bitcoin mining and AI data centres, described as the first phase of a wider plan led by the government-backed Pakistan Crypto Council. Dawn reported that Pakistan had about 7,000 MW of surplus capacity and that the announcement came before studies and formal approvals were complete.

Price is the sticking point. Dawn reported the power minister had proposed selling surplus power at marginal cost, about Rs24 per kWh, which miners see as uncompetitive. In July 2025, Profit reported that the IMF had rejected Power Division proposals for subsidised tariffs for energy-intensive users, including crypto mining, citing market distortions. In January 2026 the head of the Pakistan Crypto Council said talks with mining firms were continuing and that sites would depend on where excess power is available.

So mining is permitted, but as of October 2026 we found no published special tariff for miners. For how the hardware side works, see how bitcoin mining works.

How is crypto mining taxed in Pakistan?

Pakistan has no crypto-specific tax rate. In June 2026 an official of the Federal Board of Revenue told Arab News that crypto is already taxable under existing law, with mining treated as business income and gains on sales treated as capital gains. The detail is in how crypto is taxed in Pakistan, and other countries' approaches are compared in how crypto mining is taxed.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.