Pakistan regulated its crypto sector with new virtual asset framework established under six months, while spending just $200,000, or around 8% of the approved budget, Minister of State and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib said.
PVARA chief said Pakistan revealed the figures while addressing Bitcoin Asia 2026 in Hong Kong earlier this week. The spending figure drawn attention because the $200,000 used for the initiative accounts for only about 8% of the approved budget, leaving nearly 92% of the allocated funds untouched.
Saqib said the achievement should not be measured by the size of the expenditure but by the results delivered, stressing that government performance should be judged on output rather than spending.
Pakistan’s digital asset push has moved at breakneck speed. In less than half a year, the South Asian nation progressed from primary legislation to formally notified regulations and a functioning licensing framework, creating a legal and regulatory pathway for businesses seeking to operate in the virtual asset market.
The regime covers a broad range of activities, including Virtual asset exchanges, Brokerage, Asset management, Lending and Settlement services. The framework also introduces safeguards and compliance requirements involving corporate governance, anti-money laundering, counter-terrorism financing, customer asset protection, cybersecurity and market conduct.
Bilal presented PVARA’s rapid rollout as evidence that governments can regulate emerging industries through smaller teams and technology-led processes rather than relying solely on large bureaucratic structures. But he stressed that moving quickly cannot mean abandoning safeguards.
He said regulators must find the right balance between speed, accountability, institutional structure and consumer protection as technological industries continue to evolve at an unprecedented pace.
The government’s digital economy ambitions extend well beyond conventional cryptocurrency trading. PVARA chief highlighted potential growth areas including tokenized markets, programmable payments, stablecoins, machine-to-machine commerce and artificial intelligence agents. The rise of autonomous AI systems could create an entirely new regulatory headache.
Future AI agents could potentially conduct transactions on behalf of individuals, businesses and machines, raising difficult questions about financial authority, identity verification, compliance and responsibility when something goes wrong. Regulators may therefore eventually have to develop rules covering transactions carried out by autonomous AI systems alongside traditional virtual asset service providers.
Saqib said Pakistan does not necessarily need to spend years following the technological path already taken by larger economies. Instead, the country could attempt to build new financial infrastructure around emerging technologies and compete closer to the frontier.
Pakistan’s large population and expanding technology sector could provide a substantial market for digital asset companies and fintech businesses looking for growth opportunities. But the real test now begins.
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