ISLAMABAD, Oct 12 — Pakistan has established a comprehensive regulatory framework for virtual assets within 15 months, as the government moves to position the country for opportunities emerging from blockchain, stablecoins and tokenised finance.
Minister of State and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib briefed Prime Minister Shehbaz Sharif and the federal cabinet on Monday about progress in regulating the sector and Pakistan’s potential role in the next phase of the global financial system.
The briefing focused on the rapid integration of blockchain, stablecoins and tokenisation into international payments, investment and capital markets, as governments and major financial institutions build new infrastructure around digital finance.
Bilal Bin Saqib said Pakistan now had an opportunity to take part in shaping the next generation of the financial system rather than simply adapting to changes designed elsewhere.
“Today, as money becomes programmable, Pakistan has an opportunity to help shape the next generation of the global financial system,” he said.
PVARA Expands Licensing and Regulatory Framework
PVARA was established in July 2025 and has since introduced initial regulatory gateways for major international exchanges, launched a regulatory sandbox and developed a broader licensing framework for virtual asset businesses.
Around five months after the Virtual Assets Act 2026 was approved, two sets of licensing regulations were notified on August 21, 2026.
According to the authority, these milestones were achieved while using less than 8% of its overall budget.
The State Bank of Pakistan also introduced a conditional banking framework in April 2026 for virtual asset businesses licensed by PVARA, replacing restrictions dating back to 2018.
The shift has created a clearer route for regulated virtual asset companies to interact with Pakistan’s banking system, subject to licensing and compliance requirements.
AI Becomes Core Part of Virtual Asset Regulation
Artificial intelligence is also being incorporated into PVARA’s regulatory operations.
AI-based workflows are already being used to track licensing applications, identify missing documentation and support regulatory reviews.
The authority is also beta-testing an AI-powered complaints management system.
PVARA is developing a broader AI-native regulatory platform called the “PVARA Brain”. Its initial proof of concept includes 74 AI agents operating across 11 institutional functions.
Bilal Bin Saqib said the system was being developed with human oversight, transparency and accountability built into its design.
Final regulatory decisions will remain with authorised officers rather than automated systems, he said.
Pakistan Pushes Global Role in Digital Finance
Pakistan has also been expanding its international engagement on blockchain and tokenised finance.
In September 2026, PVARA organised a high-level dialogue titled “Blockchain and the Tokenized Future” in New York during UN Digital Cooperation Day.
The event was held in collaboration with Pakistan’s Permanent Mission to the United Nations and the UN Office for Digital and Emerging Technologies.
Pakistan’s virtual asset regulatory framework has also been presented to the United Nations Development Programme, UN Trade and Development and the office dealing with technology policy under the UN Secretary-General.
According to the authority, the framework was presented as a possible model for developing economies.
PVARA has also signed regulatory memorandums of understanding with Kazakhstan and Kyrgyzstan to strengthen cooperation on cross-border supervision.
Digital Eurobonds and Tokenised Certificates Under Study
Looking ahead, Bilal Bin Saqib outlined four priorities for PVARA: strengthening institutional capacity, activating supervision and enforcement, improving coordination with existing financial regulators, and developing structured pilot proposals for cross-border payments and tokenisation of sovereign assets.
Preliminary work is already underway with the Ministry of Finance and relevant financial institutions on the possible tokenisation of sovereign debt.
This includes proposals for digital Eurobonds and the potential tokenisation of Naya Pakistan Certificates.
Any implementation, however, would remain subject to regulatory review, government approvals and applicable safeguards under Pakistani law.
Licensing decisions would also continue to depend on due diligence, regulatory assessment and compliance with domestic legal requirements.
Focus Shifts From Regulation to Investment and Jobs
Bilal Bin Saqib said the authority’s objective was not simply to issue licences but to build a credible regulatory system that could protect users while supporting responsible investment and innovation.
“Our goal is not to issue licences for announcements. It is to build a regulator whose licences are credible, whose supervision protects Pakistanis, and whose framework enables responsible investment and innovation,” he said.
He added that Pakistan’s next challenge would be to convert regulatory progress into investment, employment, skills development and financial innovation that delivers measurable benefits to the economy.