Pakistan has formally launched a new independent regulatory body, the Pakistan Virtual Assets Regulatory Authority (PVARA), to oversee the country’s digital asset industry. The move marks a significant step in the nation’s broader ambitions to integrate with the global cryptocurrency and blockchain economy.

The authority will function independently and is tasked with licensing, monitoring, and supervising virtual asset service providers. It will also ensure alignment with international financial standards, including guidelines set by the Financial Action Task Force (FATF).

A Future-Ready Framework for Digital Finance

According to English-language daily Dawn, the establishment of PVARA follows an announcement in May by the Ministry of Finance endorsing the initiative. Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb, described the launch as part of a larger vision to modernise the country’s financial infrastructure.

“We must regulate not just to catch up, but to lead,” Aurangzeb said. “We are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation.”

The Finance Ministry also issued a statement calling the creation of PVARA a “critical inflexion point” in Pakistan’s digital evolution. The authority is expected to help attract foreign capital, foster innovation, and give legitimacy to the country’s growing crypto and blockchain sectors.

IMF Pushback on Crypto Initiatives

Despite Pakistan’s aggressive push into the digital finance space, the strategy has not been without obstacles. Recently, the International Monetary Fund (IMF) reportedly rejected a proposal from Pakistan to provide subsidised electricity to energy-intensive industries, including Bitcoin mining operations.

This resistance came shortly after Pakistan’s government designated 2,000 megawatts of surplus electricity for use in Bitcoin mining and artificial intelligence (AI) centres. The initiative, led by the Pakistan Crypto Council and supported by the Ministry of Finance, aimed to boost the country’s digital infrastructure and attract global players.

High-Level Global Engagement

Pakistan has also sought international partnerships to support its ambitions. In early June, Bilal Bin Saqib, the country’s Minister of State for Crypto and Blockchain, held a series of high-profile meetings in the United States.

Saquib met with Brandon Lutnick, chairman and CEO of Cantor Fitzgerald, to discuss opportunities in tokenisation, Bitcoin mining, and Pakistan’s broader Web3 future. He also engaged in talks with New York City Mayor Eric Adams, where potential collaboration between the Pakistan Crypto Council and New York’s blockchain ecosystem was explored.

The minister’s visit also included a stop at the White House, where he met with Robert “Bo” Hines, executive director of US President Donald Trump’s Council on Digital Assets. Discussions centred around potential cooperation in crypto-centric initiatives such as the development of Pakistan’s Bitcoin reserves and expansion of its mining operations.

A Strategic Shift Toward Digital Leadership

The launch of PVARA, paired with international outreach and infrastructure investment, signals a strategic shift in Pakistan’s approach to digital finance. The country is moving from a reactive stance to a more proactive, leadership-driven model in the global crypto space.

By aligning with international regulatory standards and engaging with global financial players, Pakistan hopes to position itself as a regional hub for blockchain innovation and digital assets. The steps taken by the government are seen not only as a means of economic modernisation but also as a way to build financial resilience in a rapidly evolving global economy.

While challenges remain, particularly with international financial institutions like the IMF, Pakistan’s commitment to building a regulated and innovative crypto environment appears firm. The coming months will reveal how PVARA executes its mandate and how the country navigates both domestic and international pressures in its pursuit of digital finance leadership.