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By Tanveer Ahmed :
Pakistan is moving towards establishing a formal regulatory framework for virtual assets, as Prime Minister Shehbaz Sharif has directed authorities to operationalise a system aligned with international standards to support the country’s growing digital economy.
The directive was issued during a meeting in Lahore with State Minister Bilal Bin Saqib, who also serves as chairman of the newly formed Pakistan Virtual Assets Regulatory Authority. According to a statement from the Prime Minister’s Office, the premier emphasised the need to build a transparent and effective regulatory structure as quickly as possible to boost investor confidence and encourage innovation in the financial technology sector.
Officials said the proposed framework is designed to regulate emerging digital financial instruments while also preparing Pakistan’s workforce for shifts in global economic trends. The prime minister also called for targeted training programmes for young people in areas such as artificial intelligence and digital finance, describing them as essential skills for future economic growth.
During the briefing, the PVARA chairman informed the prime minister that the authority is transitioning into a fully operational regulator. He also highlighted the introduction of a regulatory sandbox aimed at allowing controlled testing of new technologies, including AI-based payment systems and regulated virtual asset services.
The government has positioned the initiative as part of a broader effort to modernise Pakistan’s financial ecosystem and integrate it with rapidly evolving global digital markets. Officials say institutional readiness, workforce development and regulatory clarity are being prioritised to support this transition.
The move follows recent legislative and policy developments, including the enactment of the Virtual Assets Act 2026 by the State Bank of Pakistan, which provides the legal foundation for regulating virtual assets in the country. Under the law, PVARA is responsible for licensing, supervision and oversight of all virtual asset-related activities.
Authorities have also clarified that any pilot projects or agreements involving virtual assets will require prior regulatory approval, underscoring the government’s intent to maintain strict oversight as the sector develops.
Analysts say the push reflects Pakistan’s broader ambition to position itself within the global digital finance landscape, although they note that the success of the framework will depend on how effectively it balances innovation with regulatory safeguards.
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