Pakistan accelerates virtual assets regulation, PM orders swift rollout of framework

Pakistan is moving to fast-track the formal regulation of virtual assets, with Prime Minister Shehbaz Sharif directing authorities to operationalise a comprehensive framework aligned with international standards as soon as possible.

The directive was issued during a meeting in Lahore with State Minister and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib, according to a statement from the Prime Minister’s Office on Friday.

The prime minister said an effective regulatory system is critical to support the country’s digital economy and strengthen investor confidence in emerging financial and virtual asset markets.

He also called for focused efforts to equip the youth with modern skills, particularly in artificial intelligence and digital finance, to prepare the workforce for evolving technological and economic demands.

During the briefing, Bilal Bin Saqib informed the prime minister that PVARA is transitioning into a fully functional regulator. He highlighted the launch of a regulatory sandbox designed to facilitate controlled testing of virtual asset services and related financial innovations.

The prime minister was further briefed on ongoing initiatives including AI-based payment systems and regulated virtual asset services, alongside broader efforts to align institutions, workforce training, and regulatory systems with the next phase of economic transformation.

The development comes after the State Bank of Pakistan introduced the Virtual Assets Act 2026 earlier this month, under which virtual assets were legalised and PVARA was established as the statutory body responsible for licensing, supervision, regulation, and oversight of the sector.

In a separate clarification, the authority recently stated that any agreements or pilot projects involving virtual assets require prior regulatory approval before execution.