Ikramul Haq

A fair tax base can still produce an unfair settlement if collection is centralised without safeguards or revenue reaches governments without reaching services. Article 142 of the 1973 Constitution of Islamic republic of Pakistan allocates...

Implementation should proceed through measured stages: reconcile existing liabilities and refunds, agree model rules

AI should flag. A legally authorised human officer should decide. That safeguard is essential. Artificial intelligence can assist matching, anomaly detection, risk selection and forecasting; it must not autonomously determine legal liability.

Pakistan cannot broaden its tax base by repeatedly squeezing people already visible to the State. Artificial intelligence offers a different route: build a national economic registry that can distinguish taxable capacity from dependency, lawful...

Exports cannot grow without regional connectivity and trade with neighbours

The global monetary system is entering a transition from digitized banking records to programmable representations of value. The launch of Bitcoin in 2009 introduced decentralized peer to peer transfer, However, Ethereum subsequently expanded blockchain applications through smart contracts. The rise of stablecoins addressed cryptocurrency volatility by linking token value to fiat currency or other reference assets. The emergence of central bank digital currency research, tokenized deposits and tokenized securities has since moved this debate from speculative trading toward payment infrastructure. The European Union’s Markets in Crypto-Assets Regulation created a broad framework for crypto assets and stablecoin issuers. The Financial Action Task Force (FATF) has pressed jurisdictions to regulate virtual asset service providers, implement the Travel Rule and confront illicit finance. The central policy question is no longer whether blockchain can transfer value, but whether that transfer remains legally enforceable and institutionally trustworthy. The United States initially regulated digital assets through overlapping authorities rather than one comprehensive statute. The 2013 FinCEN guidance, 2017 SEC DAO report and 2020 OCC custody interpretations marked significant stages in this evolution. The Securities and Exchange Commission applied securities law, while the Commodity Futures Trading Commission addressed commodity derivatives and relevant market conduct. The Financial Crimes Enforcement Network enforced money transmission and Bank Secrecy Act requirement, and OFAC administered sanctions. The OCC, Federal Reserve, FDIC and state regulators addressed banking, custody, payments and licensing within their respective mandates. The GENIUS Act, enacted on July 18, 2025, responds to a narrower and more immediate problem: who may create a dollar linked payment instrument, what backs it and how holders recover their money. The Act establishes authorized issuer categories, high-quality reserves, redemption rights, supervisory accountability and restrictions on issuer-paid yield. The objective is to reduce risk and deceptive claims while supporting payment innovation and the international utility of the dollar. The coins remain uninsured private liabilities. Accredited on paper, educated in reality? Pakistan’s quality assurance dilemma From Reform to Results: How Sindh Is Reshaping Public Education Where can Pakistani young people simply exist? Cyber traps, innocent children: the dark side of the digital world The proposed Digital Asset Market Clarity Act addresses a different regulatory deficit. The GENIUS Act concerns the money used to pay; the CLARITY Act would address the market structure governing many assets being bought and sold. The proposed framework would allocate responsibilities between the SEC and CFTC and regulate relevant intermediaries, disclosures and trading activity. The House passed the measure in July 2025, but a September 15, 2026 Senate procedural vote failed to advance it. The OCC’s October 2026 final rule translates the GENIUS Act into supervisory obligations, principally through new 12 CFR part 15. The rule applies to specified national banks, federal savings associations, federal branches, qualified nonbank issuers, foreign issuers and certain state issuers within OCC jurisdiction. The regulations become effective January 18, 2027, alongside the statute. The accompanying amendments to parts 3, 6, 8 and 19 address capital treatment, corrective action, assessments and enforcement procedures. The foundation lies in §§15.1–15.4, which define scope, operative terms, severability and the OCC’s reserved authority. The first implementation task is a legal perimeter assessment identifying the issuer, affiliates, product characteristics, regulatory approvals and applicable jurisdiction. The board should approve a documented obligations register linking every applicable provision to a control owner and testable evidence. The activities clause, §15.10, confines issuers to authorized issuance, redemption, reserve management, specified custody, fees and directly supporting activities. The rule prohibits misleading government or deposit insurance claims, issuer paid yield solely for holding or using stablecoins, and most reserve rehypothecation. The issuer should review product terms, affiliate incentives, marketing, network-fee inventories and reserve transactions before launch. The reserve clause, §15.11, requires identifiable, segregated assets whose value continuously meets or exceeds outstanding issuance. The eligible pool includes cash, demand deposits, short dated US Treasuries, specified repos, qualifying money market funds and certain tokenized equivalents. The rule requires at least 5% in demand accessible balances and generally caps single counterparty exposure to 40%, subject to stated exceptions. The issuer should reconcile liabilities and custody positions continuously, monitor maturities and counterparties, and stress test liquidation capacity. The monthly published reserve report requires independent examination and executive certification. The shortfall protocol must stop new issuance immediately; a 15-business day shortfall can trigger liquidation and redemption. The redemption clause, §15.12, requires public policy, clear fee disclosures and redemption generally within two business days after a qualifying request. The issuer must notify the OCC within 24 hours when redemption requests exceed 10% of a coin brand’s outstanding value over 24 hours. The redemption clock starts after lawful onboarding; issuers cannot impose discretionary suspensions. The changes to redemption fees require seven calendar days’ advance notice. The risk clause, §15.13, covers governance, internal audit, liquidity, interest rate and foreign exchange exposures, service providers, technology security and operational resilience. The issuer should adopt board approved risk appetite, independent testing, smart contract assurance, key management controls, incident response and stressed redemption simulations. The reporting clause, §15.14, establishes generally annual examinations, weekly confidential returns, quarterly financial reports and record retention. The state transition clauses, §§15.15–15.16, address nonbank state issuers surpassing $10 billion of outstanding stablecoins and OCC intervention during unusual circumstances. The threshold requires notification within five days and generally a federal transition within 360 days unless issuance is constrained or a waiver applies. The affected issuer should monitor issuance daily, prepare its capital analysis and evaluate waiver eligibility well before crossing the threshold. The custody clauses, §§15.20–15.23, define covered assets and require customer level records, creditor protection and control over directly held assets. The framework permits appropriately controlled omnibus accounts and sub-custodians while excluding providers of genuine self-custody tools without key control. The custodian should establish enforceable custody agreements, wallet control evidence, reconciled beneficial-owner records, insolvency analysis and independent sub-custodian oversight. The safeguards protect specified stablecoin related property; they do not by themselves settle ownership law for every tokenized bond or fund unit. The licensing clauses, §§15.30–15.33, govern domestic approvals, foreign issuer conditions, registration and revocation. The domestic application process generally provides a 120 day decision window after an application becomes substantially complete. The foreign pathway demands

The activities clause, §15.10, confines issuers to authorized issuance, redemption, reserve management, specified custody, fees and directly supporting activities. The reserve clause, §15.11, requires identifiable, segregated assets whose value...

The IMF’s Fiscal Transparency Code calls for regular disclosure and management of revenue forgone through tax expenditures. However, the estimated cost of an exemption is not automatically cash available upon repeal. Endnotes International Monetary...

What emerges is a direction supported by evidence, with choices still requiring measurement: a greater contribution from under-taxed

The IMF’s October 2026 analysis identifies more neutral taxation, better treatment of investment costs and stronger administration as routes to growth.[6] Its findings support scrutiny of damaging burdens; they do not establish our preferred...