Pakistan PM Orders Fast-Track Rollout of Crypto Regulations, Aims for Regional Digital Finance Hub

ISLAMABAD - Prime Minister Shehbaz Sharif has directed authorities to fast-track the complete operationalization of Pakistan's regulatory framework for virtual assets, signaling a decisive shift toward embracing the digital economy and positioning the country as a regional hub for crypto and blockchain technology .

The directive came during a high-level meeting on May 1, 2026, with Minister of State and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib. The Prime Minister emphasized that an "effective and internationally aligned regulatory system" must be made fully functional without delay to promote the digital economy and enhance investor confidence . The Prime Minister's office confirmed that the meeting took place in Lahore, where Sharif stressed the urgency of the measures .

A year ago crypto businesses in Pakistan couldn't open a bank account.

Today the Prime Minister is personally directing the full operationalization of the virtual assets framework and pushing AI training for youth in the same conversation.

Kudos to @Bilalbinsaqib! Proud! pic.twitter.com/2LWZu6HIQ2

- Momin (@mominsaqib) May 1, 2026

The premier linked the move directly to broader economic goals, including expanding the digital economy and attracting foreign investment through clearer regulatory certainty. He also underscored the importance of equipping the country's youth with skills for emerging technologies. "Youth should be provided training in modern technologies, particularly artificial intelligence and digital finance, so that the country's human resources are aligned with future requirements," he said .

This policy shift is a dramatic reversal from the previous administration's stance. The State Bank of Pakistan (SBP) formally ended its eight-year ban on crypto banking in April 2026, issuing a new circular that enables regulated entities to open bank accounts for PVARA-licensed Virtual Asset Service Providers (VASPs) and their customers, subject to strict Anti-Money Laundering (AML) and compliance requirements .

Regulatory Framework and Infrastructure

The government has established the Virtual Assets Act, 2026, which formally sets up PVARA as the statutory regulator responsible for licensing, supervising, and overseeing all virtual asset activities in the country . The new framework replaces the 2018 circular that prohibited dealing in virtual currencies, marking a transition from a restrictive environment to a structured, regulated framework .

Key Components of the Framework:

• Regulatory Sandbox: Allowing innovators to test new technologies such as AI-driven payment systems and blockchain applications in a controlled environment 

• Strict AML/CFT Compliance: Licensed VASPs must implement customer due diligence (KYC), transaction monitoring, record-keeping for ten years, and suspicious activity reporting to the Financial Monitoring Unit (FMU) 

• Banking Access: Virtual Asset Service Providers (VASPs) holding a valid PVARA license can now open segregated "client money accounts" in Pakistani banks, subject to rigorous due diligence 

• Technology-Neutral Regulation: Applying equally to all virtual asset technologies to ensure fair and consistent oversight 

Transformative Potential for Remittances

Pakistan receives approximately $38.3 billion in annual remittances and has over 100 million adults outside the formal financial system . Officials and industry leaders believe virtual assets should be viewed as infrastructure rather than a peripheral technology trend.

Speaking at a separate briefing in Islamabad on April 30, Saqib noted that around 40 million Pakistanis are currently involved in crypto trading and are bearing transaction costs of 5-6%. Those costs could decline to nearly 1% once formal digital licensing is introduced .

Exchange Companies Association of Pakistan (ECAP) Chairman Malik Muhammad Bostan has projected that cryptocurrency could help raise Pakistan's remittance inflows from 38billionto∗∗38billionto∗∗50 billion annually** if it develops into a stable digital payment medium. Faster and cheaper digital transfers through crypto platforms could allow overseas Pakistanis to send money within minutes instead of using conventional banking routes .

Vision for Digital Leadership

This regulatory push coincides with Pakistan's broader Digital Nation agenda, aimed at generating significant inflows of foreign exchange and Foreign Direct Investment (FDI) in the coming years. PVARA has already initiated interim licensing for major exchanges, as well as pilot projects in mining, tokenization, and fintech .

Speaking at the Abu Dhabi Bitcoin Conference 2025, PVARA Chairman Bilal Bin Saqib stated that Pakistan considers Bitcoin and digital assets not just an investment but a fundamental pillar of the future financial system. "A country with a population of 240 million and 70 percent youth power is not only dependent on the traditional economy but is rapidly moving towards a new model of digital economy," he said .

A Forbes 30 Under 30 honoree, Saqib is leading the effort to establish a formal industry consultative group under PVARA, bringing together leading practitioners to work alongside the Authority on the development of Pakistan's virtual asset regulatory framework. The group will foster collaboration between regulators and industry stakeholders to ensure market integrity .

International Recognition and Partnership

Pakistan's reform momentum has garnered international attention. The Dubai International Financial Centre (DIFC) has partnered with the Pakistan Digital Authority to host the Pakistan FinTech Summit on August 18-19, 2026, marking the first international expansion of the Dubai FinTech Summit . The summit is set to be one of the largest-ever gatherings in Pakistan focused on financial innovation, drawing over 10,000 participants and up to 150 sponsors and exhibitors .

DIFC Authority CEO Arif Amiri noted that the expansion "solidifies Pakistan's status as a strategic global FinTech growth market," adding that the collaboration unlocks cross-border innovation opportunities between the UAE, Pakistan, and South Asia .

Federal Minister for IT and Telecommunication Shaza Fatima Khawaja said that "DIFC's decision to convene its flagship FinTech platform under the Pakistan brand, beyond the UAE, is a strong signal of global trust in Pakistan's emerging digital financial ecosystem and its reform trajectory" .

Background and Evolution

PVARA was initially established in July 2025 through a presidential ordinance and later granted permanent legal status through the Virtual Assets Act 2026. The framework is explicitly designed to meet international Financial Action Task Force (FATF) requirements, including customer due diligence protocols .

The regulatory framework is built on three pillars: clarity in rules, phased implementation, and effective supervision through technology . Under the law, PVARA has been mandated to license VASPs, regulate markets, supervise compliance with financial and security standards, and ensure alignment with international requirements .

Conclusion

As Pakistan prepares to host the Pakistan FinTech Summit and implement its new regulatory framework, the government is signaling that the era of crypto uncertainty is ending. With 40 million existing crypto users, a young and tech-savvy population, and supportive regulatory leadership, Pakistan aims to transform itself from a peripheral player to a central hub for digital finance innovation in the region.