Published on: August 24, 2025 12:22 PM
Finance Minister Muhammad Aurangzeb has raised serious concerns about the rising trend of unregulated digital transactions in Pakistan, warning that the country could face international penalties and risk re-entering the FATF grey list. He said nearly 25 million Pakistanis, especially youth, are engaged in digital businesses, and without proper oversight, such activities could invite financial scrutiny, sanctions, and harm to the country’s economic credibility.
Speaking at the Leadership Summit on Blockchain and Digital Assets, Aurangzeb stressed that Pakistan had exited the FATF grey list after six difficult years, and unregulated digital transactions must not become a reason to slip back. He explained that know-your-customer checks and anti-money laundering safeguards are crucial for financial transparency, and immediate regulatory measures must be enforced to prevent any reputational or economic damage.
The finance minister highlighted that the government has established the Pakistan Virtual Assets Regulatory Authority (PVARA) through an ordinance to oversee, license, and regulate entities dealing with digital assets. The authority will hold its maiden meeting on Monday to discuss key policy directions, review licensing requirements, and outline a transparent framework to ensure compliance with international standards.
Aurangzeb further stated that a permanent legal framework is needed, as the current ordinance is valid for four months and requires parliamentary approval to become an enduring law. He revealed that parliamentary committees will begin discussions next week on the Virtual Assets Ordinance, which includes a licensing regime, compliance rules, and a regulatory sandbox to encourage innovation under supervision.
He also emphasized that Pakistan must accelerate its adoption of blockchain, artificial intelligence, cryptocurrency, and Web 3.0 technologies to strengthen the digital economy. International models and collaborations, he said, can help Pakistan move faster without starting from scratch. However, he underlined that innovation should go hand in hand with regulation to ensure financial integrity, responsible use, and economic growth.
Aurangzeb concluded by assuring that the government stands committed to supporting the country’s digital future while maintaining strict oversight. He added that the objective is to encourage technological progress, attract investment, and protect the financial system by building a balance between innovation, regulation, and global compliance.
