Prime Minister Shehbaz Sharif has directed the early and full operationalisation of an effective, internationally aligned regulatory system for Pakistan’s virtual assets sector, issuing the directive during a meeting with Pakistan Virtual Assets Regulatory Authority Chairman Bilal Bin Saqib at the Prime Minister’s Office. The Prime Minister stressed the need to strengthen regulatory mechanisms in line with global standards, saying that an effective and internationally aligned regulatory system in the virtual assets sector should be made fully operational as soon as possible to promote the digital economy and increase investor confidence in Pakistan. The meeting signals a direct push from the top of government to accelerate the transition of Pakistan Virtual Assets Regulatory Authority from a newly constituted body into a fully functioning, market-facing regulator.
During the meeting, Saqib briefed the Prime Minister on the operational transition of Pakistan Virtual Assets Regulatory Authority into a regulator, as well as the launch of a regulatory sandbox. The briefing highlighted ongoing initiatives aimed at introducing innovation in areas such as AI-driven payment systems and regulated virtual asset services, and it was also noted that work was underway to prepare national institutions, the workforce, and the regulatory framework for the next phase of economic transformation driven by digital technologies. The regulatory sandbox, in particular, is a meaningful development, as it provides a controlled environment in which virtual asset businesses can test new products and services under regulatory supervision before receiving full licensing, a model that has been used effectively by financial regulators in Singapore, the United Kingdom, and the United Arab Emirates to encourage innovation without compromising consumer protection.
The Prime Minister also underlined the importance of equipping the country’s workforce with skills for emerging technologies, saying that youth should be provided training in modern technologies, particularly artificial intelligence and digital finance, so that the country’s human resources are aligned with future requirements. The meeting followed Saqib’s interaction a day earlier with founders, chief executives, technologists, and financial innovators from Pakistan’s digital assets sector, where he urged stakeholders to increase investment in Pakistan across artificial intelligence, robotics, and blockchain. He noted that Pakistan received $38.3 billion in annual remittances and had over 100 million adults outside the formal financial system, adding that virtual assets should be viewed as infrastructure rather than a peripheral technology trend.
Pakistan Virtual Assets Regulatory Authority was initially established in July 2025 through a presidential ordinance and later granted legal status through the Virtual Assets Act 2026, which formally set up the authority and its regulatory framework. Under the law, measures will be implemented to prevent money laundering and terrorism financing, and the authority has been mandated to license virtual asset service providers operating in or from Pakistan, regulate markets, supervise compliance with financial and security standards, and ensure alignment with international requirements. Last month, the State Bank of Pakistan allowed banks to open accounts for licensed virtual asset service providers, overriding a 2018 ban, as the country moved to integrate digital assets into the regulated financial system. With the Prime Minister now personally directing the pace of operationalisation, Pakistan’s virtual assets regulatory architecture appears to be moving from institutional setup into active enforcement and market engagement at a notably rapid pace.
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