ISLAMABAD: The federal government is set to take a major step toward formal cryptocurrency regulation in Pakistan, with Finance Minister Muhammad Aurangzeb scheduled to present the Virtual Assets Ordinance, 2025, in the Senate on Friday, August 15. The proposed legislation seeks to establish the Pakistan Virtual Asset Regulatory Authority (PVARA), a dedicated body responsible for licensing, regulating, and supervising activities related to virtual assets and virtual asset service providers.
The ordinance, which was promulgated on July 8, 2025, outlines the legal and regulatory framework for dealing with cryptocurrencies, tokens, and other virtual assets in the country. Once in place, PVARA will serve as the central authority to oversee compliance, promote transparency, and ensure secure transactions in the rapidly evolving digital asset space.
The legal foundation for the ordinance is rooted in Article 89 (1) of the Constitution of Pakistan, which empowers the President to issue an ordinance when the National Assembly or Senate is not in session, if immediate action is deemed necessary. As per constitutional provisions, such an ordinance remains effective for 120 days and can be extended once for another 120 days if approved by either the National Assembly or Senate. After the extended period, the ordinance lapses unless formally enacted into law.
The federal cabinet has already approved the summary for establishing PVARA, signaling the government’s intent to integrate digital asset regulation into the broader financial ecosystem. This move is seen as a significant milestone for Pakistan’s fintech sector, potentially opening avenues for safe investment in digital currencies while curbing illicit activities linked to unregulated virtual transactions.
Alongside the Virtual Assets Ordinance, the Senate’s Friday session will also take up four other government bills already passed by the National Assembly. These include the Anti-terrorism (Amendment) Bill, 2025, the Petroleum (Amendment) Bill, 2025, the National School of Public Policy (Amendment) Bill, 2025, and the Pakistan Land Port Authority Bill, 2025. The government aims to secure Senate approval for these bills without sending them to the relevant standing committees, expediting the legislative process.
The Anti-terrorism (Amendment) Bill, 2025, proposes expanded powers for law enforcement agencies to apprehend individuals suspected of terrorism-related offenses. The Petroleum (Amendment) Bill, 2025, introduces an IT-based tracking system for petroleum products to combat smuggling and ensure transparency in the fuel supply chain. The National School of Public Policy (Amendment) Bill, 2025, seeks to update the institution’s governing framework by replacing references to the “federal government” with more specific authorities to streamline administrative functions.
The Pakistan Land Port Authority Bill, 2025, aims to create a centralized authority for managing land ports, enabling an integrated system for the cross-border movement of goods and passengers. This includes overseeing operations, development, and security of land ports, facilitating more efficient trade and travel infrastructure.
With the Virtual Assets Ordinance on the agenda, Pakistan could be on the verge of a landmark regulatory shift in its financial sector, potentially fostering innovation, investor confidence, and international compliance in cryptocurrency dealings. However, the success of this legislation will depend on effective implementation, robust oversight mechanisms, and clear compliance guidelines for stakeholders in the virtual asset industry.
