Pakistan is taking steps toward establishing a formal regulatory framework for digital assets, as experts caution that the rapid growth of blockchain technologies is moving faster than existing oversight mechanisms.
The topic was discussed at a leadership summit on blockchain and digital assets hosted by the Centre for Digital Assets Research at the Lahore University of Management Sciences. Participants highlighted both the potential benefits and emerging risks tied to the sector’s expansion.
Minister of State and Chairman of PVARA, Bilal Bin Saqib, said the government is actively working on a structured regulatory system as digital asset usage continues to rise.
He emphasized the importance of timely policy measures, noting that regulations should encourage innovation while also protecting consumers.
According to him, nearly 40 million Pakistanis are already involved in digital assets, largely through informal and unregulated platforms, which increases exposure to financial risks.
He added that bringing these users into the formal financial system is a key objective to minimize exploitation and improve financial inclusion.
Highlighting economic aspects, Saqib noted that Pakistan’s annual remittances—estimated at around $38 billion—could become more efficient through blockchain-based systems. He also pointed out that clearer regulations could benefit the country’s growing freelance sector by improving access to global markets.
He explained that the proposed framework would adopt a risk-managed approach and include regulatory sandbox environments to test new technologies.
One of the initial focus areas will be asset-backed tokenization, allowing fractional investments in sectors like real estate and financial instruments.
Saqib warned that delays in regulation could drive greater reliance on unregulated systems, given the already high level of adoption. He added that Pakistan has the potential to play an active role in shaping global digital finance discussions rather than simply following external models.
He also stressed the need for collaboration among financial institutions, tech companies, academia, and regulators to build expertise and address the shortage of skilled professionals.
“The biggest gap right now is talent,” he said.
The summit will continue with further discussions on artificial intelligence, blockchain integration, and the future of regulated digital finance.
