In a major step toward modernising its financial system, Pakistan is preparing to launch a digital currency pilot project and has finalised legislation to regulate virtual assets.
The announcement came from State Bank of Pakistan (SBP) Governor Jameel Ahmad, who spoke at the Reuters NEXT Asia summit in Singapore on Wednesday.
Governor Ahmad said that Pakistan is "building up our capacity on the central bank digital currency" and aims to roll out a digital currency pilot project soon. Pakistan joins a growing list of countries—including China, India, Nigeria, and several Gulf states—exploring blockchain-powered payment systems and digital currencies to keep pace with global financial innovation.
Highlighting Pakistan’s broader crypto ambitions, Ahmad shared that the newly approved "Virtual Assets Act, 2025" lays the groundwork for licensing and regulating the virtual assets sector. This new framework will guide financial institutions and investors in adopting digital finance securely and transparently.
Supporting this effort, Pakistan’s government-backed Pakistan Crypto Council (PCC), established in March, is actively promoting virtual asset adoption. The PCC is already exploring bitcoin mining using surplus energy, has brought on Binance founder Changpeng Zhao as a strategic adviser, and plans to create a state-run bitcoin reserve.
Meanwhile, Pakistan's Minister of State for Blockchain and Crypto, Bilal bin Saqib, confirmed that the Virtual Assets Act has led to the creation of an independent regulator tasked with licensing and supervising crypto-related activities in the country.
Though the SBP clarified earlier that virtual assets are not illegal, it had advised financial institutions to refrain from engaging with cryptocurrencies until a licensing framework was in place. Ahmad stressed the need for caution: "There are risks associated, and at the same time, there are opportunities in this new emerging field. So we have to evaluate and manage the risk very carefully."
Beyond digital innovation, Ahmad touched on Pakistan's broader economic outlook. The SBP has steadily reduced interest rates from 22% to 11% over the past year as inflation dropped sharply from 38% in May 2023 to just 3.2% in June 2025—the lowest in nearly a decade.
He said the country’s tight monetary policy has stabilised both inflation and the external account, with foreign reserves rising to $14.5 billion, up from under $3 billion two years ago. Ahmad also reaffirmed Pakistan's commitment to its ongoing $7 billion IMF programme, which has spurred key reforms in energy pricing, fiscal management, and the foreign exchange market.
On questions regarding military-related financing, particularly imports from China, the SBP chief clarified he was unaware of any such plans.
