Finance Minister Muhammad Aurangzeb has called for continued fiscal discipline, export expansion and increased private-sector investment as Pakistan moves from economic stabilisation towards sustainable growth. Addressing a Pakistan Banks Association event virtually, the finance minister said long-term economic progress would depend on strengthening the country’s financial system, improving business conditions and expanding productive economic activity. He emphasised that financial innovation should support businesses, reduce the cost of doing business and bring more people into the formal economy.
Aurangzeb said Pakistan’s economic transition required policies that encourage investment and strengthen exports while maintaining fiscal stability. He highlighted the importance of using digital financial technologies to improve access to services and make business operations more efficient. According to the finance minister, digital assets should be integrated into the financial system based on their practical economic benefits and their ability to facilitate legitimate business activities, rather than simply because they represent new technology.
Discussing developments in digital finance, Aurangzeb cited deposit tokens for institutional customers operating on blockchain networks as an example of financial innovation with practical applications. He said Project Agorá, an initiative involving the Bank for International Settlements, was examining the use of tokenised bank deposits. Pakistan’s central bank was also exploring opportunities to facilitate cross-border payments through deposits, reflecting growing interest in improving the speed and efficiency of international financial transactions.
The finance minister stressed that banks would remain central to the development of digital financial services. He said financial institutions had an important responsibility to protect customer funds, manage risks associated with emerging technologies and ensure reliable delivery of services. As digital finance expands, banks must maintain strong safeguards while supporting innovation that improves financial access and operational efficiency.
Aurangzeb also highlighted the need for a regulatory framework that distinguishes between different categories of digital assets and the economic activities associated with them. He said the risks linked to unbacked crypto assets were different from those associated with regulated financial products or digital representations of deposits. Regulators therefore needed to assess each category according to its specific characteristics, potential benefits and risks.
He said Pakistan had established a legal framework for virtual assets through the Virtual Assets Act 2026. Under this framework, the Pakistan Virtual Assets Regulatory Authority (PVARA) is responsible for licensing and supervising virtual asset service providers. Aurangzeb described the development as progress towards establishing a legally recognised and supervised environment for virtual asset activities in the country.
The finance minister also acknowledged the roles of the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) in developing the regulatory framework for digital assets. Their involvement is important in ensuring that financial innovation operates within appropriate legal and supervisory arrangements while addressing risks related to consumer protection, financial stability and market integrity.
Aurangzeb further highlighted the importance of remittances as a source of foreign exchange for Pakistan. He said the country received $41.6 billion in remittances during the previous fiscal year, with inflows expected to exceed $44 billion in the current fiscal year. Sustained remittance growth can support external account stability and strengthen the country’s foreign exchange position, while digital financial channels may help improve the efficiency of sending and receiving funds.
He cautioned that cybersecurity could not be overlooked as Pakistan expands digital financial systems and adopts new technologies. The finance minister stressed that protecting financial infrastructure, customer information and transactions must remain a priority alongside innovation. Strong cybersecurity measures, effective regulation and responsible adoption of technology will be essential to maintaining public confidence in digital financial services.
Aurangzeb’s remarks underline the government’s focus on combining macroeconomic discipline with technology-led financial development. He said Pakistan’s transition towards sustainable growth would require stronger exports, greater private investment, effective financial regulation and digital innovation that delivers measurable economic benefits.
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