Crypto Legislation and VARA Formation
Finance Minister Muhammad Aurangzeb announced Pakistan will soon introduce formal legislation to regulate cryptocurrencies and digital assets. The government has already established the Virtual Asset Regulatory Authority (VARA) and formed the Pakistan Crypto Council to ensure responsible development of the digital asset ecosystem, safeguard investors, and prevent money laundering or capital flight.
Digital Finance for Climate Investment
Aurangzeb emphasized that digital finance and crypto regulation can channel investment toward climate resilience and sustainable projects. Speaking at the SDPI plenary on circular, climate-resilient finance in South Asia, he highlighted Pakistan’s climate frameworks, including the National Adaptation Plan, Climate Prosperity Plan, Green Taxonomy by the State Bank, and the National Climate Finance Strategy.
Mobilizing Sustainable Capital
The minister confirmed Pakistan has secured a $1.3 billion IMF climate package, $500 million from the ADB, and a 10-year $2 billion World Bank partnership. Plans include issuing Panda Bonds in China and promoting market-based tools like green bonds, carbon markets, and debt-for-nature swaps, along with scaling successful private initiatives like Acumen’s Climate Action Fund and Sindh’s mangrove carbon credit project.
Regional Collaboration and Policy Initiatives
Experts from UNEP, SAWTEE, and Japan’s Institute for Global Environmental Strategies stressed the need for circular, climate-resilient economies. Bank of Punjab CEO Zafar Masud proposed a Regional Climate Bank for South Asia. Aurangzeb stressed integrating climate priorities into national budgets and leveraging private sector participation for long-term sustainable development.
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