By Staff Reporter
ISLAMABAD: Finance Minister Muhammad Aurangzeb called for a decisive pivot toward blockchain technology and digital assets, acknowledging the intricate nature of the country’s banking system and the urgent need to modernize its financial infrastructure.
Speaking at the Leadership Summit on Blockchain and Digital Assets: Technology and Innovation in Islamabad, Aurangzeb outlined a roadmap for integrating emerging technologies into Pakistan’s economic framework while emphasizing the need for a robust regulatory approach to mitigate risks.
Aurangzeb described Pakistan’s banking system as “more complex” than those of other nations, a structural challenge that he said necessitates the adoption of blockchain to streamline processes and enhance efficiency. “We have to accelerate our journey in terms of adopting transformative technologies like blockchain and digital assets, assuring the government’s full support,” he said, underscoring the potential for these technologies to drive financial inclusion, transparency, and speed.
The minister’s remarks come as Pakistan seeks to cement its position in the rapidly evolving global digital economy. With 20-25 million Pakistanis, particularly young people, already engaged in digital asset-related activities, Aurangzeb stressed that this growing trend cannot be ignored. “This scale of participation cannot be ignored,” he said, calling for structured policy responses to channel this momentum into economic growth.
Aurangzeb cautioned that without a comprehensive regulatory framework, Pakistan risks setbacks in its hard-won progress on anti-money laundering (AML) and know-your-customer (KYC) compliance, particularly in light of its recent exit from the Financial Action Task Force (FATF) grey list. “It took five years of sustained effort to exit the grey list,” he said. “We have no intention of re-entering that cycle.”
To address these concerns, the government has established the Pakistan Virtual Asset Regulatory Authority (PVARA), with its inaugural meeting set for next week. The authority aims to develop a balanced regulatory framework, drawing on international models from Dubai, Singapore, and the European Union while prioritizing national interests. Aurangzeb highlighted the role of international experts and organizations in supporting Pakistan’s efforts to fast-track its regulatory and policy frameworks.
The minister also revealed that crypto mining is under active consideration, with a dedicated crypto council already established to explore its economic and regulatory implications. “We must harness their energy, channel it through education and regulation, and integrate it into a system that strengthens the economy while safeguarding national interests,” he said.
Aurangzeb framed blockchain as a cornerstone of Pakistan’s “new economy,” alongside artificial intelligence and Web 3.0 technologies. He identified three key drivers for blockchain adoption: financial inclusion, transparency, and speed. By enabling faster, cheaper, and more efficient transactions, blockchain could transform sectors such as banking, remittances, agriculture, IT, freelancing, and energy. As an example, he cited the development of e-KYC systems powered by blockchain, which reduce duplication in compliance processes for banks.
Such initiatives, he argued, demonstrate the practical benefits of emerging technologies in addressing longstanding inefficiencies. “This is not just about keeping pace with global change—it is about ensuring Pakistan’s rightful place in the new economy,” Aurangzeb said, emphasizing the government’s commitment to fostering an enabling environment for the private sector to lead innovation.
Aurangzeb underscored the importance of collaboration between government, academia, and the private sector to scale up Pakistan’s digital transformation. “This trilateral partnership of government, academia, and private sector is essential to scaling up our journey into the new economy,” he said, noting that academia would provide the knowledge and talent needed to sustain innovation.
The minister also expressed surprise at the absence of Bilal Bin Saqib, the special assistant to the prime minister on blockchain and cryptocurrency, from the summit. Saqib was appointed specifically to advance Pakistan’s blockchain agenda, making his participation in such events critical, Aurangzeb noted. Still, he affirmed the finance ministry’s openness to engaging with the summit’s organizers to advance discussions on digital assets.
Aurangzeb’s push for blockchain comes as Pakistan makes strides toward macroeconomic stability, with economic reforms underway to facilitate traders and investors. “Facilitating traders and investors is a top government priority,” he said, adding that the national economy is gradually stabilizing. The adoption of blockchain and digital assets, he argued, would complement these efforts by fostering financial inclusion and efficiency.
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