The Government of Pakistan has taken a decisive step by approving the creation of the Pakistan Virtual Assets Regulatory Authority (PVARA). The new body is designed to bring structure, oversight, and long-term strategy to a fast-growing but largely unregulated crypto ecosystem.
With annual informal crypto transactions estimated at over $300 billion, Pakistan has long stood at the crossroads of embracing digital assets or suppressing them. The creation of PVARA shows a clear preference for regulation over restriction.
The most striking feature of the new framework is not just the regulation of Virtual Asset Service Providers (VASPs) but the country’s intent to create a sovereign Bitcoin reserve. Alongside this, the government has earmarked 2,000 megawatts of surplus energy, previously wasted or underutilised, to fuel Bitcoin mining and artificial intelligence clusters.
This action reflects a strategic repositioning of Pakistan’s energy policy. By redirecting excess power into value-generating digital infrastructure, the country aims to transform its electricity grid from a liability into an asset. In a region often plagued by power shortages and fiscal instability, this is a bold, if risky, calculation.
Why does this matter?
This isn’t just a domestic regulatory update; it’s a signal to emerging markets. Pakistan is taking a page from El Salvador’s playbook, but with its spin, leveraging unused power, regulating access, and tying mining to a national economic strategy.
It also opens up debates around whether state-owned crypto reserves are prudent hedges or unstable bets. From a broader lens, it highlights how energy management and digital asset regulation are becoming intertwined.
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