Pakistan has formally established its first regulatory framework for virtual assets by enacting a new law that creates the Pakistan Virtual Assets Regulatory Authority (PVARA). This federal authority is tasked with licensing and supervising crypto-related businesses, marking a significant step toward regulating the country's digital asset sector. The move comes as Pakistan, home to over 40 million cryptocurrency users, aims to position itself as a hub for digital assets. Concurrently, the State Bank of Pakistan is preparing to launch a pilot program for a digital rupee, with legislation for virtual asset regulation being finalized. The new crypto law is reported to be Shariah-compliant, aligning with Islamic finance principles. Additionally, Pakistan is exploring entry into the Chinese debt market through a Panda Bond initiative.