It is deeply concerning to learn that a legal business owner operating a software house in Pakistan has had his bank account arbitrarily blocked by one of the law enforcement agencies without any prior notice, explanation, or due process. Despite repeated efforts to seek assistance from his bank and Authority, no resolution has been provided. Instead, he has been unjustly threatened with allegations of terror financing and money laundering, a grave misuse of legal provisions that undermines the confidence of IT professionals and foreign investors in Pakistan.
Legal Perspective and Constitutional Violation: Blocking an individual’s bank account without due process violates fundamental rights guaranteed under the Constitution of Pakistan, 1973. Specifically:
Article 4: Guarantees the right of individuals to be treated in accordance with the law and due process.
Article 18: Protects the right to lawful trade, business, or profession without unwarranted governmental interference.
Article 23 & 24: Ensure the protection of property rights, including financial assets, from arbitrary state action.
Article 199: Provides the constitutional remedy of a Writ Petition before the Hon’ble High Court, when no other adequate remedy is available, to challenge unlawful actions of public officials.
Furthermore, under the Prevention of Electronic Crimes Act, 2016 (PECA), Section 37 mandates that restrictions on digital financial transactions must be reasonable and in line with fundamental rights. Misusing investigative powers to unjustly disrupt lawful businesses contradicts both PECA, 2016, and international best practices for digital commerce regulation.
Economic Ramifications and Policy Implications: Pakistan’s IT industry is one of the fastest-growing sectors, contributing significantly to foreign remittances and helping to balance the foreign trade deficit. Unjust harassment of IT entrepreneurs discourages investment and compels skilled professionals to relocate abroad, ultimately harming the national economy.
On March 14, 2025, the Prime Minister of Pakistan announced the formation of the Pakistan Crypto Council (PCC), a commendable step aimed at enhancing regulatory oversight over cryptocurrency and blockchain technologies. This initiative signals a growing commitment to digital finance and sustainable fintech development. However, such an important regulatory body should ideally operate under the joint framework of the State Bank of Pakistan and the Ministry of Finance to ensure legal coherence and fiscal accountability. Decentralised financial tools, if not monitored within institutional safeguards, may give rise to parallel challenges similar to those currently faced by legitimate IT businesses. Hence, systemic reforms must be holistic, integrating fintech, banking, and enforcement within one transparent, lawful ecosystem
The Prime Minister of Pakistan, the Ministry of Finance, and the Special Investment Facilitation Council (SIFC) must urgently take notice of this issue and ensure that regulatory agencies, including Federal Investigation Agency (FIA) and the State Bank of Pakistan (SBP), operate within their lawful jurisdiction. Transparency and accountability must be upheld to protect legitimate businesses from arbitrary and unlawful actions.
Call to Action:
1. Immediate intervention is required to address cases of unlawful account freezing by law enforcement agencies.
2. The government must establish clear and transparent procedures to ensure that any investigation into financial transactions complies with due process.
3. IT professionals and business owners must be provided legal protections against arbitrary actions to maintain confidence in Pakistan’s digital economy.
Such misuse of authority must be discouraged to foster a secure, investment-friendly environment for IT entrepreneurs. A legal challenge through a Constitutional Petition under Article 199 remains the only viable remedy for affected individuals until substantive policy reforms are introduced.
Legal community and IT professionals must raise their voices against this malpractice to safeguard Pakistan’s digital economy.
