The State Bank of Pakistan (SBP) has taken a landmark step toward embracing digital finance by agreeing, in principle, to legalize digital currencies in the country. The move, which signals a shift in Pakistan’s financial landscape, was revealed during a briefing to the Senate Standing Committee on Finance and Revenue, held in Islamabad on Wednesday.
Acting Deputy Governor Dr. Inayat Hussain informed the committee, chaired by Senator Saleem Mandviwalla, that while a formal framework has yet to be implemented, the central bank has cleared the way for future adoption of digital assets. Responding to a direct query on whether Pakistanis can now buy virtual assets, Dr. Hussain said yes, affirming SBP’s new stance while highlighting that the necessary legal structure is still being established.
The discussion centered on the Government’s “Virtual Assets Bill, 2025,” which seeks to regulate digital assets in line with global best practices. The proposed bill aims to address both the opportunities and risks associated with virtual currencies, balancing innovation with investor protection and systemic security.
According to a briefing from the Finance Division, virtual assets represent a growing part of the global financial system, offering new avenues for investment, innovation, and inclusion. However, they also present regulatory challenges, particularly around issues of transparency, fraud prevention, and safeguarding against money laundering and terrorism financing.
To address these concerns, the Government of Pakistan promulgated the Virtual Assets Ordinance 2025 on July 8, leading to the creation of the Pakistan Virtual Asset Regulatory Authority (PVARA). PVARA has been tasked with licensing and supervising Virtual Asset Service Providers (VASPs), ensuring compliance with both domestic and international standards. Its mandate also includes fostering innovation, enabling Shariah-compliant digital finance solutions, and supporting financial inclusion across diverse segments of society.
The Ordinance provides the legal framework for licensing VASPs, combating illicit activities, and establishing Pakistan as a competitive player in the global digital asset space. This comprehensive approach aims to ensure that the virtual currency market in Pakistan evolves in a secure, transparent, and investor-friendly manner.
During deliberations, the Senate Standing Committee suggested shifting the authority from the Cabinet Division to the Finance Division, citing the subject’s direct financial and regulatory relevance. The committee also discussed qualifications for the leadership of PVARA, recommending an upper age limit of 55 years alongside at least five years of experience in digital finance and technology. Senator Anusha Rehman emphasized the importance of creating space for young professionals rather than limiting opportunities through restrictive eligibility criteria.
The committee’s session was not without controversy. Senator Afnanullah Khan accused the government of replicating his private member bill on virtual assets and introducing it under official cover. He criticized the Law and Justice Division for failing to conduct a proper comparison, labeling the move unethical. The committee has now recommended amendments to Senate Rules to prevent such disputes in the future.
As Pakistan advances toward establishing a digital asset regime, the SBP’s agreement in principle to legalize cryptocurrencies marks a pivotal moment. It underscores a broader effort to align with international financial norms while positioning Pakistan as a forward-looking participant in the global digital economy.
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