Pakistan Seeks Global Partners for Digital Economy and Blockchain Growth

Pakistan has begun shaping the groundwork for its digital transformation by introducing new national legislation aimed at modernizing governance and technology policy. These reforms include establishing central institutions to oversee digital planning at both the federal and provincial levels, ensuring that implementation is coordinated across government. At the same time, the country has positioned itself at the forefront of global investment trends by adopting an international framework designed to encourage digital foreign direct investment. This model emphasizes the development of infrastructure, the uptake of digital tools, the growth of new technology-driven industries, and the expansion of digital services into global markets.

In the field of virtual assets, the government has introduced the Virtual Assets Ordinance, 2025 and created the Pakistan Virtual Assets Regulatory Authority (PVARA). This body is tasked with licensing, regulating, and supervising virtual asset service providers. A related entity, the Pakistan Crypto Council, has been established to assist policymakers in shaping blockchain and crypto regulation. Complementing this, Pakistan is also experimenting with surplus power allocation, with 2,000 megawatts of electricity designated in the first phase for Bitcoin mining and AI data centres. Officials argue that this will channel otherwise unused energy resources into new technology-driven growth.

Beyond government reforms, partnerships with development finance institutions and private sector actors are being actively pursued. A recent Memorandum of Understanding signed between the Asian Development Bank and P@SHA, Pakistan’s IT industry association, highlights efforts to build scalable digital infrastructure and promote innovation at a structural level. These collaborations reflect Islamabad’s strategy of blending international expertise, multilateral finance, and local industry to accelerate the transition into a digitally driven economy.

The government envisions multiple opportunities arising from these initiatives. Strengthening digital infrastructure and boosting exports of IT and related services are seen as pathways to attract foreign investment and access global digital markets. With a large youth population, Pakistan also hopes to build capacity in artificial intelligence, blockchain, fintech, cybersecurity, and other high-growth sectors, positioning itself as a regional hub for skilled digital labour. Digitizing public services and regulatory regimes is expected to enhance efficiency, reduce corruption, and enable more inclusive access to services, particularly for rural and under-served areas.

Yet the road to a fully digital economy will not be without obstacles. Building effective regulation for emerging technologies is only one part of the equation; the real test will be how consistently those rules are applied and understood. Expanding reliable internet coverage, creating modern payment systems, and ensuring data security will require long-term investment as well as coordination across different levels of government. There are also broader questions about sustainability, since large-scale technology projects can place new demands on energy and infrastructure. Equally important is the challenge of inclusion: unless digital growth reaches rural communities and those with fewer resources, the benefits of transformation risk being unevenly distributed.

When Pakistani officials speak of seeking “partners,” they appear to mean more than foreign investment alone. The term encompasses global technology firms providing capital and expertise, multilateral organizations such as the ADB, WEF, and DCO that can fund and benchmark reforms, and domestic private sector actors including startups, universities, and civil society groups. Each of these partners is seen as integral to creating a collaborative digital ecosystem that can deliver both economic returns and inclusive benefits.

Pakistan has set ambitious timelines for rolling out these reforms and building digital infrastructure. The success of the agenda will depend on careful policy execution, including the passage of complementary legislation, intergovernmental coordination, and reliable financing. Building trust with citizens and investors will be equally vital. International partners are likely to watch closely how Islamabad manages regulatory clarity and energy sustainability in its digital asset frameworks.