Pakistan Courts Crypto: "Come Build Here!" – New Law Paves Way for Virtual Assets

Finally, movement in Pakistan! After years of hesitation and a de facto ban on digital currencies, the country has passed a new law regulating virtual assets—and it’s no half-measure. The government is actively encouraging international companies to come and set up shop there. Bilal Bin Saqib, Special Advisor to the Prime Minister on Blockchain and Cryptocurrencies, puts it bluntly: "Come Build Here."
That’s quite a statement. Pakistan, long considered one of the most restrictive countries when it comes to crypto, is now opening its doors to blockchain and crypto innovation. But what’s really behind this sudden shift in thinking? And what opportunities—and risks—does the new law bring? I took a closer look.
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From Blockade to Blockchain: Pakistan’s Radical U-Turn
Since 2018, Pakistan has been crypto-unfriendly. The central bank repeatedly warned of the risks of digital currencies and even banned banks from doing business with crypto exchanges. But the pressure grew too great. The global digital economy is expanding, and Pakistan urgently needs new investments. At the same time, more people in the country recognized that blockchain technology could be more than just a speculative tool.
The decisive moment, however, came from outside. Pakistan faces immense economic pressure—high inflation, a weak currency, and the need for new foreign exchange earnings. In this context, it almost makes sense that the government is now jumping on the crypto bandwagon. After all, despite its volatility, the global crypto market offers enormous opportunities: new jobs, technology transfer, and, above all, fresh foreign capital.
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The Virtual Assets Act: What’s Really Changing?
The new law, currently being finalized, aims to create a clear legal framework for cryptocurrencies and other digital assets. Some key points:
1. Licenses for Crypto Companies: Anyone wanting to operate in Pakistan’s virtual asset space—whether as an exchange, wallet provider, or advisory firm—will need an official license. This is intended to prevent fraud while protecting legitimate businesses.
2. Tax Incentives: To attract investors, the government is planning tax relief, including reduced corporate taxes or even temporary exemptions in the early years.
3. Infrastructure Development: Over the next few years, the government plans to invest heavily in broadband internet and data centers to support crypto operations optimally.
4. Workforce Development: To ensure a skilled workforce, partnerships with universities and international blockchain institutes are planned. The goal is to build local expertise that can serve not only Pakistan but also global projects.
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Why Pakistan? The Location’s Advantages
The invitation to foreign companies sounds enticin



g—but what makes Pakistan attractive compared to established crypto hubs like Singapore, Dubai, or Switzerland?
1. Lower Operating Costs: IT and blockchain experts in Pakistan are significantly cheaper than in Europe or the U.S. Industry reports suggest developer salaries are only a fraction of Western rates.
2. Access to New Markets: With a young, tech-savvy population of over 240 million and geographic proximity to Central Asia and the Middle East, Pakistan offers companies a strategic platform for expansion.
3. Flexible Regulation: Unlike countries with rigid rules, Pakistan has the chance to set its own standards—an opportunity for innovative business models that wouldn’t be possible elsewhere.
4. Government Support: The administration isn’t just paying lip service; it’s showing concrete backing. Prime Minister Shehbaz Sharif has publicly emphasized that the crypto sector is a "key industry" for Pakistan’s economic future.
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The Downsides: Why It’s Not All Smooth Sailing
Despite the promise, significant risks remain:
1. Judicial System: Slow and unpredictable, court cases can drag on for years, and judicial independence isn’t always guaranteed. For international firms that rely on legal certainty, this could be a dealbreaker.
2. Banks Are Still Hesitant: Even with government approval, many banks remain skeptical, fearing instability and may continue to avoid crypto businesses despite licensing.
3. Economic Risks: Pakistan suffers from chronic foreign exchange shortages. Large-scale crypto outflows could further destabilize its fragile currency.
4. Regulatory Uncertainty: While the new law is progress, many details are still unclear—how licensing will work, what taxes apply, and how consumer protection will be enforced. Until these questions are answered, many businesses will wait on the sidelines.
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Opportunities for Pakistani Startups
It’s not just international conglomerates that could benefit from Pakistan’s new crypto policy. Local startups see an opportunity to finally compete on the global stage. Until now, securing funding for blockchain projects has been extremely difficult for Pakistani entrepreneurs. That could change.
The government isn’t just courting foreign investors; it’s also looking to nurture homegrown talent. If successful, Pakistan could emerge not only as a major crypto hub but also as a center for regional innovation in just a few years.
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Final Thoughts: Pakistan Is Serious About Crypto—And It Might Just Work
Whether the new law leads to a boom depends on how quickly the government addresses unanswered questions and whether the broader economy fully embraces the shift. I’ll be keeping a close eye on developments—because if Pakistan gets this right, it could be a game-changer.