In a significant development for Pakistan's digital economy, the Pakistan Virtual Regulatory Authority (PVARA) has announced that cryptocurrency mining operations are set to commence in the country within the coming weeks. This initiative is a cornerstone of the government's broader strategy to establish a regulated framework for digital assets and tap into new revenue streams.
Mining to Utilize Surplus Power for Economic Gain
PVARA Chairman Bilal Bin Saqib, in a recent interview, highlighted that technological progress has now made bitcoin mining more efficient. He revealed a practical plan to install specialized mining hardware directly at power plants. This strategic move is designed to capitalize on the nation's surplus electricity, converting it into valuable, dollar-denominated earnings.
Saqib emphasized that this approach could positively impact Pakistan's economic outlook by creating a new export-like revenue channel. The first phase of this crypto mining project is scheduled for launch shortly, with subsequent phases to address public concerns and refine the regulatory landscape.
From Legal Grey Area to Regulatory Framework
The chairman pointed out that Pakistan's journey with digital assets has been evolving. He recalled that back in 2018, the State Bank of Pakistan issued directives to banks concerning crypto transactions, a time when a comprehensive legal structure was absent. This regulatory gap was a key reason behind the establishment of PVARA as a dedicated authority.
Saqib noted that a 2025 analytical report ranked Pakistan third globally in cryptocurrency-related activity, largely driven by the youth. "It is the state’s responsibility to create opportunities for the youth and provide a regulated environment for innovation," he stated.
Learning from Global Models and Mitigating Risks
Drawing parallels with other technologies like robotics and quantum computing, Saqib argued that innovation should not be stifled but gradually regulated. He mentioned that PVARA is actively developing a licensing regime for cryptocurrency and related activities, alongside blockchain regulations specific to crypto assets.
He issued a warning, stating that failure to progress with these regulations could heighten the risk of Pakistan being placed back on the Financial Action Task Force’s (FATF) grey list. To diversify funding avenues, Saqib suggested Pakistan could explore raising capital through markets, inspired by models like Singapore's government-backed security pilot, rather than relying exclusively on international lenders like the IMF.
This move marks a pivotal shift in Pakistan's stance on digital finance, aiming to harness technological potential while building a secure and compliant ecosystem for the future.
