Pakistan’s banking industry, financial regulators and government representatives have discussed a coordinated approach to digital assets and emerging financial technologies, focusing on the role banks can play in developing the country’s digital finance infrastructure. The discussions took place at the “Dialogue on Digital Assets and the Future of Banking”, organised by the Pakistan Banks Association (PBA) in collaboration with the Centre for Digital Asset Research (CeDAR) at the Lahore University of Management Sciences (LUMS).
The event brought together representatives from the Ministry of Finance, Pakistan Virtual Assets Regulatory Authority (PVARA), State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), banking institutions and international financial organisations. Held as a continuation of the Pakistan Banking Summit 2026, the dialogue examined how Pakistan’s financial sector can adopt emerging technologies through responsible innovation, regulatory coordination and stronger institutional preparedness.
Key discussion areas included cross-border payments, tokenisation, programmable payments and the practical use of new technologies across the country’s financial ecosystem. Participants also considered the regulatory, operational and cybersecurity requirements that need to be addressed before digital finance solutions can be introduced at a broader scale.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb attended as the chief guest. Other keynote speakers included Minister of State and PVARA Chairman Bilal Bin Saqib, SBP Deputy Governor Saleem Ullah, SECP Commissioner Imtiaz Haider and J.P. Morgan Global Co-Head of Payments Umar Farooq. PBA Chairman Zafar Masud and LUMS Vice Chancellor Dr Ali Cheema also shared their perspectives on the future direction of the financial sector.
During his address, Aurangzeb highlighted the government’s exploration of tokenising Pakistan’s existing Eurobond debt, subject to the necessary approvals. The proposal reflects the government’s interest in examining how digital asset technology could be applied to financial instruments and existing debt structures. He stressed that developing practical digital finance solutions would require cooperation between banks, regulators and technology practitioners, supported by effective risk management and cybersecurity safeguards.
Bilal Bin Saqib called on Pakistan to take a more active role in developing the financial infrastructure that is emerging globally. He argued that the country should not remain only a user of systems designed elsewhere, but should contribute to building the next generation of financial services and payment networks. He encouraged banks to support innovators, invest in artificial intelligence capabilities and strengthen partnerships with academic institutions such as LUMS.
The PVARA chairman also identified supervised, bank-led payment arrangements connected to major Gulf remittance corridors as an opportunity for further examination. Such arrangements would require coordination among relevant regulators and appropriate safeguards before implementation. The proposal highlights the potential role of banks in connecting digital financial services with established remittance channels, particularly those serving Pakistan’s overseas workforce and households receiving money from abroad.
SBP Deputy Governor Saleem Ullah emphasised that the financial sector should prioritise practical applications rather than adopting technology simply because it is new. He identified blockchain-enabled remittances and Roshan Digital Accounts as possible areas for exploration through the central bank’s regulatory sandbox. This approach would allow relevant institutions to examine potential applications in a controlled environment before considering wider deployment.
Ullah also highlighted the risks that must be assessed when introducing digital asset and blockchain-based financial services. These include monetary and financial stability, cybersecurity, anti-money laundering and know-your-customer compliance, as well as consumer protection and public trust. He encouraged banks to use the SBP’s regulatory sandbox to test relevant solutions while evaluating their operational and regulatory implications.
SECP Commissioner Imtiaz Haider focused on the need for a clear and value-driven approach to tokenisation. He urged regulators and industry participants to identify which assets could benefit from tokenisation, assess existing regulatory gaps and determine Pakistan’s readiness to adopt the technology. He emphasised that the central issue should not simply be whether an asset can be tokenised, but whether doing so would deliver meaningful economic value.
PBA Chairman Zafar Masud said banks were seeking clear regulatory standards that would allow them to prepare for changes in the financial sector. He argued that banks should be formally involved from the beginning of the regulatory development process because they serve as a key delivery channel for financial services. Their existing infrastructure, compliance capabilities and public trust could help convert emerging technologies into practical financial products.
Masud described the dialogue as a step towards developing a coordinated position for the banking industry to engage with the SBP, SECP and PVARA. Greater coordination, he suggested, would help institutions understand regulatory expectations and identify how digital asset-related services could be introduced within an appropriate supervisory framework.
LUMS Vice Chancellor Dr Ali Cheema highlighted the importance of connecting academic research, policymaking and industry experience. He said collaboration among universities, regulators and financial institutions could help assess emerging opportunities, address implementation challenges and develop the expertise required to support digital finance in Pakistan.
The dialogue also included a specialised industry workshop led by Umar Farooq of J.P. Morgan. Banking technology leaders, regulators and academic representatives participated in discussions aimed at identifying priority use cases, potential pilot projects and practical implementation requirements. The workshop provided an opportunity to examine how global payment experience could inform the development of digital financial services in Pakistan.
The discussions are expected to contribute to a coordinated banking industry perspective and a possible roadmap for continued engagement with policymakers and regulators. Key areas for future work include tokenisation, cross-border payment systems, programmable transactions, blockchain-enabled remittances and the development of institutional capabilities.
The dialogue highlighted that Pakistan’s transition towards digital finance will depend not only on technology adoption but also on regulatory clarity, institutional readiness, cybersecurity and consumer confidence. Banks, regulators, universities and technology providers will need to work together to assess viable applications and manage associated risks. The engagement between PBA and LUMS provides a platform for these stakeholders to continue examining how emerging financial technologies can be incorporated into the country’s banking system.
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