Karachi: Pakistan is preparing to launch a pilot for a central bank digital currency (CBDC) and has formally approved legislation to regulate virtual assets, in a move aimed at modernising the country’s financial system and aligning with global trends.
Speaking at the Reuters NEXT Asia summit in Singapore on Wednesday, State Bank of Pakistan (SBP) Governor Jameel Ahmad confirmed that the central bank is in the final stages of readiness for a CBDC pilot. “We are building up our capacity on the central bank digital currency and hope to roll out a pilot soon,” he said during a panel discussion alongside Sri Lanka’s central bank governor.
The initiative places Pakistan among a growing list of countries — including China, India, Nigeria, and several Gulf nations — that are testing or implementing state-backed digital currencies amid increasing interest in blockchain-based financial solutions.
At the same time, the Government of Pakistan has enacted the Virtual Assets Act 2025, following approvals from the federal cabinet, the prime minister, and the president. The law establishes the Pakistan Virtual Asset Regulatory Authority (PVARA), an autonomous body with powers to license, regulate, and supervise all entities dealing with virtual assets.
Under the new framework, any person or company offering virtual asset services in or from Pakistan must be licensed by PVARA. The law outlines a structured licensing regime, including requirements for incorporation, compliance systems, and reporting standards. The regulatory model aligns with international financial compliance norms, including those of the Financial Action Task Force (FATF).
SBP Governor Ahmad stated that the law would “lay down the foundations for the licensing and regulation” of Pakistan’s growing virtual asset sector. He added that the central bank is in discussions with technology partners to support the pilot and regulatory infrastructure.
The policy shift builds on efforts by the Pakistan Crypto Council (PCC), a government-backed body established in March 2025. The PCC is working to promote virtual asset adoption and has explored using surplus energy for bitcoin mining. Notably, Binance founder Changpeng Zhao was recently appointed as a strategic adviser to the council. The PCC has also held discussions with international crypto firms, including the U.S.-based World Liberty Financial.
In May, the SBP clarified that while virtual assets were not deemed illegal, financial institutions should refrain from engaging with them until a formal licensing regime was in place.
“There are risks associated, and at the same time, there are opportunities in this new emerging field,” Ahmad said. “We must manage risk carefully while also seizing the opportunity.”
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
