Pakistan’s launch of the Pakistan Crypto Council (PCC) earlier this year marks a bold policy shift, one that could reshape its digital economy if executed with care. Formed in March 2025, the PCC has moved swiftly: a technical committee is drafting a framework for virtual assets, and in April, it unveiled a regulatory policy aligned with FATF standards, seeking to channel Pakistan’s estimated 15-20 million existing crypto users into legitimate, monitored activities.
Pakistan is experimenting with integrating digital assets into an economy heavily reliant on remittances, energy subsidies, and an informal freelancing labor force.
The Council brings senior figures into its fold, Binance co-founder Changpeng Zhao as adviser, and Bilal Bin Saqib, a 34-year-old social entrepreneur, appointed Special Assistant to the Prime Minister with state minister status to deepen government commitment to the sector.
Pakistan is pairing policy design with infrastructure measures. In May, government officials announced an allocation of 2,000 MW of surplus electricity to power bitcoin mining and AI data centers, aiming to monetize underused energy and create skilled jobs. Simultaneously, discussions are underway to build a sovereign “strategic bitcoin reserve,” potentially signaling intent to diversify state reserves beyond fiat currency and denote confidence in the asset class.
The economic opportunity here is real. If regulated effectively, crypto mining could generate foreign exchange inflows, miners export computing power, and create technology jobs in regions hit by energy overcapacity. For thousands of digital freelancers, regulated stablecoin or remittance channels could lower transfer costs and integrate them more deeply into the formal financial sector. A well-constructed regulatory sandbox, overseen by the PCC, could nurture token-based innovation in agriculture, supply chain, and remittance platforms.
Yet risks abound. Crypto remains officially banned under current law, with the State Bank and Ministry of Finance warning that transactions are illegal. This duality, state encouragement on one hand and legal restrictions on the other, creates massive uncertainty. Global investors demand clarity; domestic actors face legal exposure. PCC’s framework-building is an important step, but insufficient without aligned legislation from parliament and a coherent legal timeline.
The PCC’s framework-building is an important step, but insufficient without aligned legislation from parliament and a coherent legal timeline.
More crucially, bitcoin reserves or mining must not become petrophilic stand-ins for structural reform. Energy use by mining operations could erode public trust if electricity-intensive processes fail to benefit local communities or contribute to subsidy burdens. Authority transparency and governance standards will determine whether mining operations truly drive jobs or funnel wealth to a tech-savvy few.
Financial integrity is equally vital. Expanding regulated crypto must go hand in hand with anti-money laundering and counterterror financing safeguards. Pakistan’s prior struggles with FATF compliance make this non-negotiable. The PCC’s policy framework is designed with FATF in mind, but enforcement details, on KYC, monitoring, and data-sharing, will matter far more than aspirational commitments.
The Council’s success depends on two pillars: legal clarity and institutional capacity. Parliament and the SBI must resolve the current legal contradiction to signal legitimacy. Regulators require training, staffing, and technological tools to oversee digital asset flows. Public awareness campaigns can help entrepreneurs and consumers understand their rights, obligations, and risks. Without these, the PCC risks becoming an aspirational body overshadowed by regulatory fragmentation.
Crypto mining must not become a petrophilic stand-in for structural reform.
At stake is more than crypto: Pakistan is experimenting with integrating digital assets into an economy heavily reliant on remittances, energy subsidies, and an informal freelancing labor force. If done right, the crypto push could modernize remittance corridors, retool surplus energy toward emerging tech, and enhance digital export services. Done poorly, it risks amplifying regulatory confusion, energy inefficiency, and financial opacity.
Ultimately, the Pakistan Crypto Council is a litmus test of governance innovation. Its ability to translate advisory roles into enforceable, coherent policy will determine whether this becomes a genuine growth catalyst or another well-intentioned announcement lost in bureaucratic contradiction. The future hinges on legal reform, transparent institutions, and investment in oversight, not hype. In that balance lies Pakistan’s chance to turn crypto from a high-risk sideline into a strategic driver of its next growth wave.
Disclaimer: The opinions expressed in this article are solely those of the author. They do not represent the views, beliefs, or policies of the Stratheia.
