ISLAMABAD: Pakistan has moved closer to bringing cryptocurrencies into the formal economy with the rollout of its first national framework for regulating virtual assets, officials said on Monday.
Advisor to the Finance Minister Khurram Shehzad said the initiative is part of the government’s wider “Digital Nation Pakistan 2025” vision, aimed at strengthening digital governance, financial inclusion and technology-driven growth.
Speaking at the FinTech Forward Forum during the 27th ITCN Asia exhibition at the Expo Centre, Islamabad, Shehzad said the proposed framework would allow digital asset holders to operate within a regulated environment while aligning Pakistan with emerging global standards.
The regulatory structure is being developed under the proposed Pakistan Virtual Assets Regulatory Authority (PVARA), which would oversee licensing, compliance and consumer protection in the virtual assets space. Officials said options for taxation and investor incentives are also under review.
Shehzad said the government has already made significant progress in digitising public administration, noting that nearly all official files are now processed through the E-Office system, improving efficiency, transparency and record-keeping across ministries.
He added that the government aims to expand financial inclusion by increasing bank account coverage nationwide and transitioning all government-to-government transactions to digital platforms within the year.
Addressing questions from participants, Shehzad said targeted incentives are being planned under the industrial policy to support investors, small and medium enterprises, agriculture and youth-focused initiatives. Measures such as small-scale financing and skills-based incentives are also under consideration.
On regulation, officials said Pakistan remains in the early stages of virtual asset governance and is studying international models, including frameworks adopted in the United Arab Emirates, to ensure a balanced approach that supports innovation while managing financial risks.
The forum concluded with calls for gradual implementation, innovation-friendly regulation and alignment with international best practices as Pakistan advances its digital economy agenda.
