Pakistan is taking a major step toward transforming its financial infrastructure, with the State Bank of Pakistan (SBP) gearing up to launch a pilot project for a digital currency and finalizing legislation aimed at regulating virtual assets. The move comes as central banks around the world intensify their exploration of blockchain-powered payment systems and digital currencies to modernize financial transactions and enhance transparency.
SBP Governor Jameel Ahmad shared these developments while speaking at the Reuters NEXT Asia summit held in Singapore. During a panel discussion alongside Sri Lanka’s central bank chief P. Nandalal Weerasinghe, Ahmad highlighted that Pakistan was actively “building up our capacity on the SBP digital currency” and was optimistic about rolling out a pilot in the near future.
This announcement aligns Pakistan with global peers like China, India, Nigeria, and Gulf states that have already initiated controlled pilot programs for central bank digital currencies (CBDCs). The strategy underscores Pakistan’s ambition to keep pace with evolving financial technologies while carefully managing associated risks.
Ahmad also revealed that Pakistan’s new Virtual Assets Act, recently signed into law by President Asif Ali Zardari, would lay down the groundwork for licensing and regulating virtual asset operations in the country. The SBP is already engaging with technology partners to explore how best to integrate these systems into Pakistan’s financial ecosystem.
The regulatory push is bolstered by initiatives from the Pakistan Crypto Council (PCC), a government-backed entity formed in March to accelerate virtual asset adoption. The PCC is exploring bitcoin mining projects using Pakistan’s surplus energy, has appointed Binance founder Changpeng Zhao as a strategic adviser, and even plans to set up a state-managed bitcoin reserve. In parallel, it has been in discussions with US-based crypto firms, including the Trump-linked World Liberty Financial, to attract technology partnerships and investment.
In May, the SBP clarified that virtual assets were not illegal in Pakistan but advised banks and other financial institutions to refrain from engaging until a formal licensing framework was implemented. Ahmad stressed at the panel that while virtual assets present certain risks, they also offer substantial opportunities. “We have to evaluate and manage the risk very carefully, and at the same time not let go of the opportunity,” he remarked.
The SBP governor also provided an overview of Pakistan’s macroeconomic environment, noting that a strict monetary policy had successfully brought inflation down to a nine-year low. Over the past year, Pakistan reduced its benchmark interest rate from a record 22% to 11%, with inflation dropping from 38% in May 2023 to just 3.2% by June 2025, averaging 4.5% in the last fiscal year.
Ahmad expressed confidence that Pakistan’s ongoing $7 billion IMF programme, running through September 2027, was on track and delivering results across fiscal policy, energy pricing, and the foreign exchange market. He indicated that the country might not need an immediate follow-up IMF arrangement after the current program ends.
Addressing concerns over global dollar fluctuations, Ahmad clarified that Pakistan’s foreign debt remains largely dollar-denominated, with only 13% tied to Eurobonds or commercial loans, minimizing exposure to currency volatility. He further noted that the country’s reserves had climbed to $14.5 billion, a remarkable turnaround from under $3 billion just two years ago.
When asked whether Pakistan was arranging financing for future military equipment imports, particularly from China, Ahmad said he had no knowledge of such plans and reaffirmed the SBP’s primary focus on ensuring smooth interbank operations and maintaining sufficient foreign exchange liquidity to support trade financing.
This comprehensive strategy to modernize Pakistan’s financial landscape — from piloting digital currencies to regulating virtual assets — marks a significant pivot towards a tech-driven, resilient, and diversified economic future.