This perspective highlights the potential for Pakistani officials to consider regulating the crypto market. This development was mentioned at the Bitcoin MENA Conference. It is also coming a few days after Saqib shared a statement declaring that the country can no longer rely on outdated economic models. Therefore, “a new engine”, which he referred to as digital assets, is needed to boost economic growth.

Pakistan fingers digital assets as important aspects of its financial system

During the discussion in Abu Dhabi, the senior Pakistan official argued that they do not see Bitcoin, digital assets, and blockchain as speculative tools, but as an important part of their infrastructure. Bin Saqib further explained that they are not just distractions but play a significant role in establishing the basis for a new financial system for developing nations.

Bin Saqib, who is also the Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA) and serves as Special Assistant to the Prime Minister on Blockchain and crypto matters, highlighted that he is working towards a major goal of transforming the largest unregulated cryptocurrency markets into a favourable investment environment.

According to him, Pakistan has the potential to develop a regulated crypto ecosystem as soon as possible, given that 70% of the population belongs to the 30-year-old age group, rather than becoming a late adopter. “My message is straightforward,” he stated. “If El Salvador can achieve this with 6 million people, just think about what Pakistan could accomplish with a population 40 times larger and one of the fastest-growing digital sectors in Asia.”

Following the senior official’s argument, analysts weighed in on the situation. They pointed out that Pakistan is increasingly becoming one of the fastest-growing cryptocurrency markets globally. Their remarks came after the country moved up six spots to solidify its top position as the third in Chainalysis’ 2025 Global Crypto Adoption Index. Bin Saqib also informed reporters that the country is preparing to establish a strategic Bitcoin reserve.

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Pakistan has shown increased interest in digital assets as the country continues to work under the $7 billion IMF program that was arranged in 2024, an arrangement that remains in place till 2027. This new collaboration also reveals how digital assets are entering the realm of international relations. El Salvador has also been a source of IMF concerns, according to Bloomberg. Its loan pact required it to halt new Bitcoin purchases, yet in April, it reported holding 6,238 Bitcoin, valued at about $745 million at current market rates.

Pakistan makes crypto power push amid IMF scrutiny

Pakistan has been seeing a rise in digital assets trading, as it has gained widespread acceptance amid warnings by the central bank about market volatility and consumer risks. According to Saqib, between 15 and 20 million residents of Pakistan hold digital assets. To use this to their advantage, the country has earmarked 2,000 megawatts of electricity for Bitcoin mining and announced a plan to establish a national Bitcoin reserve.

However, the country’s Power Secretary, Fakhre Alam Irfan, has informed the Senate’s Energy Committee that the development has drawn the interest of the IMF, which has raised concerns over the country’s choice to offer preferential electricity rates to miners. The agency mentioned that it could worsen the already delicate power market in the country and increase the already intensifying existing vulnerabilities.

Although Pakistan often has extra electricity, especially in winter, the IMF warns that offering special prices for crypto miners could upset the balance between supply and demand. Under the terms of Pakistan’s $7 billion IMF facility, any major shifts in energy policy must receive prior IMF sign‑off. In July 2025, Pakistan formally established the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and oversee virtual‑asset exchanges, wallets, stablecoins, and related services.

This move came after a Letter of Intent in April 2025 between the Pakistan Crypto Council and World Liberty Financial, a firm linked to United States President Donald Trump. The move aimed to improve blockchain adoption using pilot regulatory sandboxes and stablecoin initiatives. Although Pakistan avoided a sovereign default in 2023, it still faces steep financing needs. The IMF projects that it will require more than $100 billion in external funding by 2029 to cover budget and balance‑of‑payments gaps.

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According to the country’s Prime Minister Muhammad Aurangzeb, this is the first major step adopted by the country towards becoming a digital economy. “This allocation of power is not just about crypto or AI—it’s about shaping a digital future for the country,” he said. He also added that excess electricity could now be used as a “source of national income.”

A statement from the Finance Division mentioned that the initiative, backed by the Pakistan Crypto Council (PCC), a government-backed body, is following a broad strategy to create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions in government income. “This energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through bitcoin mining,” PCC CEO, Bilal bin Saqib said.

Pakistan plans to introduce tax incentives

According to sources at the Ministry, the government may soon introduce tax exemptions to boost the development of blockchain infrastructure and AI. These incentives may include an easing of income tax and import tariffs for companies investing in data centers. The government also revealed its plans to develop renewable energy-powered data centers in the next phase. Officials have already confirmed that the new Africa-2 Submarine Sable Project will boost the country’s internet connectivity.

This undersea cable links 46 landing stations with 33 countries across Africa, South Asia, and the Middle East. It is expected to boost the country’s bandwidth, add backup routes, and lower latency, all of which are essential for data-intensive blockchain and AI operations. Earlier in the week, Chief of Army Staff Field Marshal Syed Asim Munir met with Pakistan Crypto Council CEO Bilal Bin Saqib to explore the country’s move into digital finance.

During the meeting, Saqib mentioned the key part that young Pakistanis can play in this shift. “The Pakistan Crypto Council exists because our youth demand a seat at the global tech table. We are building for a generation that sees digital finance, decentralization, and AI as opportunities to lead, innovate, and uplift the nation,” he said. Saqib then briefed the army chief on the council’s recent activities. He noted a visit by a World Liberty Financial delegation and by Binance founder Changpeng Zhao.

He also spoke about ongoing talks to shape regulations and about partnerships meant to build digital skills and boost the country’s standing on the world stage. Trump’s World Liberty Financial (WLF) has also signed a Letter of Intent with the Pakistan Crypto Council. The goal is to speed up blockchain projects, stablecoin use, and wider DeFi adoption in Pakistan.

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“From our perspective, getting to 40 billion renminbi would be a good place to move towards… we just put in that request,” he said. The swap expansion includes Pakistan’s urgent need for stable access to foreign currencies while strengthening its financial reserves. Besides wanting a bigger swap deal, Aurangzeb mentioned that Pakistan is close to launching its first-ever Panda bond, which is debt issued in China’s domestic market and denominated in yuan.

The heads of the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB) have been locked in talks to secure credit enhancements for the bond issuance. The Finance Minister said discussions with both banks have been “constructive” and added, “We want to diversify our lending base and we have made some good progress around that—we are hoping that during this calendar year we can do an initial print.”

Pakistan wants more support as it continues to manage tensions

China has been trying to ink swap deals with several emerging economies, including Argentina and Sri Lanka, and now Pakistan is trying to extend its arrangement to keep up with increased financial needs. Aurangzeb said the plan to issue the Panda bond fits into Pakistan’s strategy to tap new markets and avoid overreliance on traditional lenders.

On the international aid front, he expects the IMF executive board to approve Pakistan’s new $1.3 billion deal under a climate resilience loan program in early May. This approval will also cover the first review of the country’s existing $7 billion bailout package.

Once the IMF board approves, Pakistan will immediately unlock a $1 billion payout, an important aspect of the financial plan Pakistan secured in 2024 to prevent a full-blown economic collapse. Asked about the effects of escalating tensions with India, Aurangzeb said it would be “not helpful” for Pakistan’s economic outlook. Earlier this month, after the killing of 26 men at a tourist site, both countries retaliated. Pakistan shut its airspace to Indian airlines and froze trade ties.

India responded by suspending the 1960 Indus Waters Treaty, which controls how water from the Indus River system is shared. Aurangzeb mentioned that even before the latest dispute, trade between the two countries had already dropped, with a total of $1.2 billion traded last year.

On the domestic economy front, Aurangzeb believes that Pakistan would hit about 3% growth for the financial year ending in June 2025. He said the country is aiming for growth of 4-5% the following year, with longer-term hopes of reaching 6%. He emphasized that expanding financial sources like the Panda bond, enlarging the swap line, and securing IMF funds are all pieces needed to hit those targets.

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