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The government has approved an allocation of Rs 800 million to operationalize the Pakistan Virtual Asset Regulatory Authority (PVARA), a newly established body mandated to regulate the country’s virtual asset ecosystem.
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The Cabinet Division informed the Economic Coordination Committee (ECC) that President Arif Alvi had promulgated the Virtual Assets Ordinance, 2025 (Ordinance No. VII of 2025), published in the Gazette of Pakistan on July 8, 2025. Following this, PVARA was formally notified on July 21, 2025, under Section 6 of the Ordinance.
PVARA will be responsible for licensing, supervising, and regulating Virtual Asset Service Providers nationwide. Its mandate includes conducting hearings, consulting stakeholders, and ensuring compliance with international standards such as those set by the Financial Action Task Force (FATF).
The Authority requested Rs 800 million for its operationalization, which the ECC approved via a Technical Supplementary Grant (TSG). The Finance Division will release funds in phases based on actual requirements.
This move marks a significant step toward establishing a robust regulatory framework for Pakistan’s growing digital asset sector.
This move marks a significant step toward establishing a robust regulatory framework for Pakistan’s growing digital asset sector. By empowering PVARA with licensing and enforcement authority, the government aims to bring transparency, investor protection, and compliance with FATF recommendations — a crucial step to avoid potential financial grey-listing. Industry experts believe this development could encourage innovation, attract foreign investment, and position Pakistan as a competitive player in the global digital economy.