Pakistan could potentially save around $400 million every year if regulated stablecoins reduce the cost of processing remittances by one percentage point, according to Bilal bin Saqib, Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA). The estimate is based on Pakistan’s annual remittance inflows of roughly $40 billion and forms part of a wider government effort to introduce virtual assets into the formal financial system. Saqib said the country is examining stablecoin-based remittances alongside other potential applications of digital assets, including cross-border payments, digital exports, trade finance and tokenized financial assets.
Saqib said approximately $40 billion in remittances continues to enter Pakistan through traditional financial channels, including the SWIFT system. He cited World Bank data showing that the global average cost of sending $200 is around 6%, suggesting that there is significant room to reduce the expense associated with international money transfers. If regulated stablecoins and related digital payment infrastructure can lower transaction costs while maintaining appropriate regulatory and compliance safeguards, even a one percentage point reduction across Pakistan’s remittance flows could translate into annual savings of approximately $400 million.
The potential savings are particularly significant because remittances represent an important source of foreign exchange for Pakistan and provide financial support to millions of households. Lower transfer costs could allow a greater portion of money sent by overseas Pakistanis to reach recipients in Pakistan. The government is therefore examining whether regulated digital asset infrastructure can complement existing remittance channels while providing faster and potentially more cost-efficient cross-border settlement mechanisms.
Pakistan has recently opened the licensing process for Virtual Asset Service Providers as part of its new regulatory framework for the sector. Existing virtual asset service providers are required to submit applications for a No Objection Certificate by September 5, 2026, under Section 70 of the Virtual Assets Act, 2026, or cease operations. The licensing process is part of the government’s effort to bring virtual asset activity within a formal regulatory structure and establish requirements for businesses operating in the sector.
According to Saqib, the potential applications of digital assets extend beyond traditional remittance transfers. Pakistan has a growing community of freelancers, software developers, designers, creators and other digital workers who receive payments from international clients. He said improved financial infrastructure could make these cross-border payments faster, cheaper and more transparent, while also helping bring a greater share of digital earnings into the formal economy.
The government is also assessing tokenization as a possible financing mechanism for businesses and projects across several sectors. Potential applications include small and medium-sized enterprises, exporters, agriculture, energy and infrastructure. Saqib highlighted the importance of SMEs to Pakistan’s economy, noting that they account for 90% of businesses and contribute 40% of GDP, while SME financing stood at only Rs850 billion in March. The financing gap presents an area where digital financial infrastructure and tokenized assets could potentially create additional channels for businesses seeking capital.
Saqib said tokenized trade receivables and private credit could potentially connect Pakistani businesses with international pools of capital. Under such structures, financial claims or receivables could be represented through digital assets, potentially allowing businesses to access a broader range of investors. The government is also examining tokenized settlement mechanisms and ways to give overseas Pakistanis greater access to investment products linked to opportunities in the domestic economy.
The development of virtual asset infrastructure is being pursued through a three-phase strategy, according to Saqib. The first phase focuses on establishing the legal and regulatory foundation for virtual assets. The second involves developing a regulated market through licensing requirements and stronger anti-money laundering compliance. The third phase focuses on practical national use cases that can deliver measurable economic benefits, including remittances, cross-border settlement, digital exports, trade finance, private credit and tokenized securities.
The approach places emphasis on regulated use rather than simply expanding access to digital assets. Saqib said each potential use case should be assessed according to its measurable economic benefit and relevance to Pakistan’s requirements. This includes examining whether a particular application can reduce costs, improve transparency, expand access to capital or strengthen the country’s position in international financial and digital markets.
The remittance opportunity represents one of the most immediate areas under consideration because of the scale of money flowing into Pakistan from overseas. A reduction in transfer costs could generate substantial aggregate savings even without changing the overall volume of remittances. At the same time, stablecoin-based transfers would require appropriate oversight to address compliance, financial integrity and consumer protection requirements as the country builds its virtual asset regulatory framework.
Saqib said Pakistan should not simply wait for emerging technologies to become established in other markets before adopting them. Instead, the country should develop the technical, regulatory and institutional capacity needed to understand these technologies and shape their use according to national priorities. The broader strategy therefore aims to combine regulation with practical applications that can support remittances, digital workers, businesses and investment.
If successfully implemented, the government’s virtual asset strategy could create new financial infrastructure for cross-border transactions while expanding financing options for businesses and exporters. For remittances alone, a one percentage point reduction in transaction costs across roughly $40 billion of annual inflows could represent about $400 million in potential yearly savings, making lower-cost digital settlement one of the key economic opportunities being examined as Pakistan develops its regulated virtual asset market.
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