Pakistan Crypto Taxation and Artificial Intelligence Development

The International Monetary Fund (IMF) proposed to Pakistan to impose Capital Gains Tax (CGT) on cryptocurrency investments as part of a $3 billion rescue package. The request to tax cryptocurrency gains from the local law enforcement body, Federal Board of Revenue (FBR), during the review process of IMF’s financial policies in Pakistan drew attention.

IMF’s Taxation Recommendations

IMF also asked Pakistan to review its policies on the taxation of real estate and securities. The proposed tax policies aim to collect annual taxes on gains from real estate assets and impose strict monitoring and reporting conditions for real estate developers.

Pakistan’s Artificial Intelligence Move

These recommendations by the IMF increase the likelihood of Pakistan formalizing taxation on cryptocurrency gains in the near future. Pakistan is also taking a significant step by setting a goal to produce one million information technology graduates trained in artificial intelligence by 2027.

Pakistan is making plans to integrate artificial intelligence for public and national improvement and has set 15 goals in this regard. The country aims to establish a National Artificial Intelligence Fund using resources from the Ministry of Information Technology and Telecommunication.

During the IMF review, Pakistan is expected to receive a $1.1 billion payment if it accepts the proposed conditions. Pakistan’s stance on cryptocurrencies may change after past statements regarding legalization.