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Four months after President Asif Ali Zardari signed the Virtual Assets Ordinance on July 8, 2025, creating the Pakistan Virtual Asset Regulatory Authority (PVARA), the body tasked with bringing the country’s underground crypto economy into the light remains largely a ghost in the machine.
Hailed as a “transformative milestone” by Finance Minister Muhammad Aurangzeb during PVARA’s inaugural board meeting on August 26, the regulator was meant to license exchanges, enable sandboxes for innovation, and unlock $20–25 billion in economic potential from remittances and digital assets.
Yet, as of late November, PVARA has issued zero licenses, approved no sandbox applications, and published only placeholder guidelines. Its website, pvara.gov.pk, lists a July announcement and an August board session, but the “Regulations & Guidelines” and “License Application” sections still read “Launching Soon,” a status unchanged since September.
The Expression of Interest (EOI) call for global Virtual Asset Service Providers (VASPs), launched with fanfare on September 13 by Chairman Bilal bin Saqib, invited established firms (licensed by SEC, FCA, MAS, etc.) to apply on a rolling basis via email to [email protected].
“This EoI is our invitation to the world’s leading VASPs to partner in building a transparent and inclusive digital financial future for Pakistan,” Saqib declared, emphasizing AML/CFT compliance, cybersecurity, and Shariah-compliant sandboxes.
Submissions required detailed profiles, operational overviews, and Pakistan-specific models, with priority for FATF-aligned entities. Yet, no shortlist has emerged, no timelines updated, and insiders describe follow-ups as “listening sessions” yielding vague assurances like “inshallah after the IMF review.”
“We submitted our EOI in September. Radio silence,” one anonymous exchange founder told media on November 8, noting freelancers still pay 5–7% fees via informal channels.
Binance P2P volumes in Pakistan hit $1.2 billion in October alone, per Chainalysis estimates, as users bypass unregulated paths despite the ban’s lift. A TechJuice report on September 25 highlighted Rs 800 million ECC funding for PVARA’s staffing and infrastructure, but no hiring drive or operational readiness has materialized.
Delays stem from entrenched bottlenecks. First, institutional turf wars: SBP and SECP, with decades of experience, resist ceding control, as leaked October correspondence shows SBP demanding oversight of stablecoins and payments. Dawn’s October 31 analysis questions PVARA’s necessity, noting only UAE and El Salvador have standalone DA regulators, a model Pakistan’s critics call “overreach.”
Second, IMF pressure: The Fund’s November 2025 staff report reiterated opposition to mining subsidies (e.g., 2,000 MW at PKR 22-23/kWh), demanding “strict safeguards” before licensing to avoid distortions in the $4.5 billion circular debt sector. PVARA officials privately await written clearance, stalling progress.
Third, capacity vacuum: With minimal staff from SBP/SECP transfers and no hiring, PVARA lacks expertise for complex applications.
As of writing this article, even symbolic efforts, promised for innovation like Shariah tokens, has no participants, and the appellate tribunal remains unconstituted. The consultation portal 404s, and no public roadmap exists beyond July’s ordinance.
Defenders argue building from scratch takes time, but with no licenses, sandbox, guidelines, or roadmap, “crypto moment” feels like optics. Until action, 27 million users and $2-3 billion remittance savings languish in limbo.
The law exists. The regulator exists, however, the progress, sadly, does not.
