Pakistan to Legislate Crypto Assets, Boost Digital Finance for Green Growth
- Aurangzeb unveils Virtual Asset Regulatory Authority to oversee digital assets
- Finance minister links crypto, fintech reforms to climate investment and innovation
- IMF, ADB, World Bank commit over $3.8bn in climate financing support
Pakistani Federal Minister for Finance and Revenue Muhammad Aurangzeb on Thursday announced that Islamabad will soon introduce formal legislation to regulate cryptocurrencies and digital assets, marking a major step toward financial modernization and sustainable investment.
He said the government has already established the Virtual Asset Regulatory Authority (VARA) under an ordinance to oversee digital assets. He added that a Pakistan Crypto Council has been formed to develop the ecosystem responsibly. He said this while speaking at a high-level plenary on “Mobilizing Finance for a Circular, Climate-Resilient South Asia” during the Sustainable Development Policy Institute’s (SDPI) annual conference in Islamabad.
He described digital finance and crypto regulation as tools to mobilize climate-related investments and spur innovation. “Climate change and population growth are existential threats to national survival,” he warned, stressing that Pakistan must align its fiscal, regulatory, and institutional frameworks to attract sustainable capital.
“Global GDP growth is improving, and Pakistan, too, is implementing structural reforms to stabilise its economy and boost investor confidence,” Aurangzeb said. He noted that the private sector’s expanding role and technology-driven finance could accelerate Pakistan’s green transition.
The minister revealed that Pakistan has secured a $1.3 billion climate financing agreement with the IMF, while the Asian Development Bank has pledged $500 million, and the World Bank’s ten-year Country Partnership Framework will inject $2 billion annually. He also announced plans to issue Panda Bonds in China to diversify financing sources.
Experts at the forum, including Dr. Abid Qaiyum Suleri of SDPI and Zafar Masud of the Pakistan Banking Association, called for innovative blended financing and stronger regulatory coherence. UNEP’s Dr. Pushpam Kumar urged South Asian economies to prioritize carbon pricing and adopt circular economic models to achieve sustainable growth.
