In a significant step towards integrating digital assets into its formal economy, Pakistan’s Economic Coordination Committee (ECC) has approved a grant of Rs 800 million for the newly established Pakistan Virtual Assets Regulatory Authority (PVARA). This funding is a cornerstone of the nation’s strategy to bring its cryptocurrency ecosystem under comprehensive oversight. The approval, which coincided with new frameworks for used car imports, highlights the government’s dual focus on embracing digital innovation and addressing broader economic needs.
This regulatory push follows the passage of the Virtual Assets Ordinance, 2025, which legally established PVARA to license, supervise, and regulate virtual asset service providers (VASPs). The move, supported by the industry advocacy of the Pakistan Crypto Council (PCC), aims to transition the sector from a previously unregulated grey area—marked by risks of fraud and financial crime—into a secure and legitimized space for investment and innovation.
Key Implications of the PVARA Funding and Framework
The ECC’s financial endorsement is allocated for PVARA’s critical startup costs, including staffing, technical infrastructure, and compliance monitoring systems. Concurrently, the authority has taken several concrete actions:
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Invitation to Global Firms: PVARA has issued a call for license applications, particularly encouraging established firms already regulated by major international bodies (e.g., the US SEC, UK FCA) to enter the Pakistani market.
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Stringent Licensing Requirements: Applicants must demonstrate robust business plans, secure technology architectures, proven compliance records, and tailored operational models for Pakistan.
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Innovation and Inclusion: The regulatory framework incorporates a regulatory sandbox to allow for testing new products in a controlled environment. A key feature is the inclusion of a Shariah Advisory Committee, tasked with ensuring virtual asset offerings align with Islamic finance principles.
Analysis: A Shift from Uncertainty to Legitimacy
The Rs 800 million allocation is more than a budgetary line item; it is a strong signal of Pakistan’s intent to build a transparent and competitive digital assets market. By inviting global exchanges and empowering a dedicated regulator, the government is laying the groundwork for formal sector growth, enhanced investor protection, and international alignment.
As PVARA Chair Bilal bin Saqib stated, “This invitation is for the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan.”
A Critical Question for the Market
A pivotal aspect of this new framework will be the influence of the Shariah advisory committee. To what extent will these guidelines restrict or shape the types of crypto products available? The answer will significantly impact the development of the market, potentially creating a unique niche for Shariah-compliant digital finance.
As Pakistan positions itself in the digital assets era, these foundational moves will determine whether the country emerges as a regulated regional hub or remains challenged by its legacy of uncertainty.