Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has underscored the importance of establishing a robust digital asset framework as Pakistan seeks to align itself with international best practices and comply with FATF guidelines. Chairing a high-level meeting on digital assets in Islamabad on Tuesday, the minister emphasized that the government is committed to exploring digital assets and integrating blockchain technology as part of a broader strategy to modernize the financial sector. The meeting was attended by a host of high-ranking officials and foreign delegates, including advisors for digital assets from President Trump’s administration, Minister of State for IT & Telecom Shaza Fatima Khawaja, the State Bank Governor, as well as the Secretary Finance and Secretary IT & Telecom. Participants deliberated on the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally, particularly those aligned with U.S. government policies.
During the discussions, significant focus was placed on financial security, risk mitigation, and the potential economic impact of digital assets on Pakistan’s economy. The government aims to address these challenges by crafting a comprehensive framework that ensures security, transparency, and regulatory compliance. As Senator Aurangzeb noted, “We are dedicated to formulating an environment that encourages innovation while strictly safeguarding against financial crimes and illicit activities.” With over 20 million active users in the digital asset market facing high transaction fees and other barriers, the government’s proactive approach is seen as critical to unlocking the full potential of this emerging sector.
Blueprint for a Secure and Transparent Ecosystem
A major element of the proposed reforms is the shift from the traditional, generalized Central Superior Services examination system to a cluster-based model that prioritizes specialized recruitment. Drawing parallels from this structural shift, the digital asset framework is designed to introduce tailored regulatory measures that match the unique needs of the digital economy. Discussions at the meeting highlighted the tokenization of key infrastructure and state-owned enterprise (SOE) assets, a move that promises increased liquidity, broader investor participation, and enhanced efficiency in capital markets. Stakeholders from both domestic and foreign investment communities have already showcased product-ready digital asset solutions, which could soon be tested in a regulatory sandbox environment.
Senator Aurangzeb directed relevant stakeholders to develop a comprehensive framework that not only bolsters security and transparency but also ensures economic viability. “Our approach will balance innovation with robust oversight, aligning with global financial standards and FATF guidelines,” the minister stated. The proposed framework will address potential risks while creating an ecosystem that supports both consumer protection and market growth. By implementing strict regulatory measures alongside incentives for digital business expansion, Pakistan aims to position itself as a regional leader in digital asset regulation, thereby fostering an environment conducive to technological advancement and financial inclusion.
Charting a Global Path for Digital Assets
To further enhance Pakistan’s digital asset initiative, the government is considering the establishment of a National Crypto Council. This dedicated advisory body will consist of key government representatives, regulatory authorities, and industry experts tasked with overseeing policy development and addressing regulatory challenges in the digital asset space. The council is envisioned as a pivotal entity that will work closely with friendly countries to develop standardized frameworks for international digital economic engagement. “We will collaborate with international partners to ensure our regulatory framework meets global standards,” said the minister, highlighting the importance of global cooperation in shaping the future of digital finance.
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The creation of the National Crypto Council is expected to facilitate a secure, compliant, and sustainable evolution of Pakistan’s digital asset ecosystem. The council will play a crucial role in advising on policies that promote innovation while maintaining a cautious, forward-looking approach that protects national interests and meets FATF requirements. The high-level meeting concluded with consensus on adopting a balanced strategy that encourages investment and technological progress while mitigating risks associated with digital asset transactions. This initiative not only marks a transformative step for Pakistan’s financial sector but also underscores the country’s commitment to fostering a competitive, secure, and transparent digital economy in an increasingly interconnected world.