In a landmark development poised to reshape the future of finance in Pakistan, the Ministry of Finance has officially announced the establishment of the Pakistan Digital Assets Authority (PDAA). This newly formed body will serve as the central regulatory authority for the country’s growing digital asset ecosystem, which includes cryptocurrencies, tokenized platforms, decentralized finance (DeFi) applications, and blockchain-based financial technologies.
With an estimated informal crypto market exceeding $25 billion, the government’s move signals a significant shift from ambiguity toward structured regulation. The PDAA will be responsible for overseeing the licensing, compliance, and governance of digital asset platforms, including exchanges, wallets, custodians, stablecoins, and tokenized financial services. Its formation is part of a broader strategic push to position Pakistan as a leader in financial innovation, while ensuring alignment with international regulatory standards, particularly those set by the Financial Action Task Force (FATF).
According to Muhammad Aurangzeb, Federal Minister for Finance and Revenue and Chairman of the Policy Coordination Committee (PCC), the initiative is not just about catching up to global trends but about setting a proactive course. “Pakistan must regulate not just to catch up, but to lead. With the PDAA, we are creating a future-ready framework that protects consumers, invites global investment, and puts Pakistan at the forefront of financial innovation,” he stated.
The PDAA is expected to create a conducive environment for innovation while safeguarding users and markets. It will provide regulatory clarity to both local and international investors, supporting economic inclusion and financial transparency. One of the authority’s key mandates includes enabling the tokenization of national assets and government debt, allowing for more efficient financing mechanisms and modern asset management tools.
Another ambitious objective of the PDAA is to help monetize Pakistan’s surplus electricity by regulating and incentivizing Bitcoin mining within legal frameworks. By converting excess energy into a globally tradable digital asset, Pakistan could tap into an emerging revenue stream while simultaneously supporting its digital infrastructure.
The announcement also underscores the government’s intention to empower startups, youth entrepreneurs, and developers in the blockchain and Web3 space. By providing a regulated and secure ecosystem, the PDAA is expected to open doors for scalable innovation, allowing new technologies to flourish in a legally compliant manner.
This initiative places Pakistan alongside a cohort of forward-thinking economies like the United Arab Emirates, Japan, Singapore, and Hong Kong, all of which have taken definitive steps to regulate and encourage digital asset adoption. The creation of a centralized authority dedicated to digital assets is viewed as a strategic leap that not only builds investor confidence but also enhances Pakistan’s reputation on the global digital economy map.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasized the broader implications of the move. “This is not just about crypto — it’s about rewriting our financial future, expanding access, and creating new export channels through tokenization, digital finance, and Web3 innovation,” he said.
The formation of the PDAA marks the beginning of a transformative era for Pakistan’s financial ecosystem. As the country embraces digital finance with a structured approach, the world will be closely watching how Pakistan balances innovation with regulation to unlock the full potential of digital assets.