In a world where finance and technology are increasingly inseparable, Pakistan finds itself at a defining moment. Globally, fintech has moved well beyond the initial waves of digitization; it now underpins entire economies, shaping how value is exchanged, safeguarded, and expanded. For banks, fintech is no longer an optional add-on but central to resilience, competitiveness, and customer trust. Pakistan’s own financial sector has embraced this transformation unmistakably. Over the last decade, mobile wallets, branchless banking, and open API frameworks have extended services to millions. Banks that once viewed fintechs as competitors now see them as collaborators in embedded finance, payments innovation, and compliance technologies.
The State Bank’s pilot of a Central Bank Digital Currency (CBDC), alongside regulatory moves such as the recently enacted Virtual Assets Ordinance 2025 and the formation of a Crypto Council, underscores a shift from experimentation to structured adoption. For incumbents, this is both a challenge and an opening: to modernize legacy systems, align with global standards, and reimagine how banking products are delivered in a digital-first economy. This backdrop made the second edition of the Fintech Forward Forum (F3), held on September 23, 2025, at the Karachi Expo Center, particularly timely. Programmed by PakBanker and hosted by ITCN Asia, the forum convened regulators, bankers, technologists, and innovators for a focused day of dialogue that set the stage for the country’s financial future.
FinFyreSide: Inside the Engine Room
The forum opened with a high-stakes dialogue titled “Inside the Engine Room: Where Technology Drives Finance,” featuring Mr. Khurram Schehzad, Advisor to the Finance Minister, and moderated by Aqsa Tariq. The session addressed the “elephant in the room”: the staggering scale of Pakistan’s informal digital asset economy.
Schehzad presented data that demands attention: current estimates suggest that between 20 to 25 million people in Pakistan trade in cryptocurrencies, making it the fifth or sixth largest market globally. With an annual trading volume estimated between $200 billion and $300 billion, and held assets ranging from $35 billion to $45 billion, the economic implications are profound. “If we ignore these figures,” Schehzad noted, “we are essentially ‘burying our heads in the sand’ while significant capital remains outside the documented economy.”
The discussion unpacked the government’s strategy to contain and channelize this trade. By formalizing the system through the Pakistan Virtual Asset Regulatory Authority (PVARA), the state aims to achieve transparency that aligns with international FATF standards. This transformation is not merely about regulation; it is about replacing the “Jugaad” (workaround) culture with a robust, globally competitive framework that supports the “National Pakistan” vision.
FinDialogue 1: From Sandboxes to Mainstream
The regulatory focus continued in the first panel, “From Sandboxes to Mainstream: Policy, Regulation & Digital Assets,” moderated by Raqami Bank. The panel featured Zeeshan Khattak (Commissioner SECP), Shahzad Shahid (TPS), Nabeel Qadeer (LUMS CeDAR), and Asfandyar Farrukh (CAP & HUB).
Commissioner Khattak emphasized that the Virtual Assets Ordinance 2025 provides the legal basis to move beyond the “permissive” era of sandboxes into a mature, taxable, and regulated market. The panel explored the practicalities of this transition:
- The Fit-and-Proper Test: Every exchange or miner entering the market must pass rigorous licensing and compliance checks.
- Shariah Alignment: A critical point for the Pakistani market, ensuring that blockchain solutions are culturally and religiously compliant to foster trust.
- Attracting Institutional Capital: The invitation to global Virtual Asset Service Providers (VASPs) like Binance and HTX suggests an ambition to integrate Pakistan into the global liquidity pool.
FinDialogue 2: Banking In The New Point O
As the focus shifted toward traditional institutions, Atyab Tahir moderated “Banking In The New Point O: Collaboration Over Competition.” The panel included Ali Imran (Meezan Bank), Muhammad Zahid, 1Link, Ahsan Mashkoor (C-Square Consulting), and Nadeem Shaikh (Neem).
The premise was clear: the era of banks versus fintechs is over. The panel addressed the “paradox of 2025”, high mobile penetration (85%) vs. low formal financial inclusion (21%). Nadeem Shaikh argued that the solution lies in Embedded Finance, where financial services are “invisible” and integrated into non-financial apps. Ali Imran discussed how Meezan Bank is utilizing open APIs to bridge the gap between deep capital reserves and agile technology.
“The challenge,” noted Ahsan Mashkoor, “is integrating legacy IT infrastructure with modern AI platforms. Collaboration is the only way to modernize without the risk of systemic failure.”
FinDialogue 3: Commerce Unboxed
The afternoon session, “Commerce Unboxed: Payments, Delivery, and Scale,” moderated by Haris Waheed, brought together leaders from the front lines of the digital economy: Nisar Mughal (Swich), Iftikhar Arif (M&P), Mahwish Saad Khan (PayFast), Taimur Ahmad (PayPro), and Hani Haider (Easypaisa).
The discussion centered on the 2025 E-commerce Tax Framework. By mandating couriers and payment gateways to act as “withholding agents,” the government has fundamentally re-engineered the logistics value chain.
- The End of COD: The panel noted a rapid shift away from Cash-on-Delivery (COD). With the Raast system offering real-time, low-cost transfers, digital payments are becoming “as good as cash.”
- Scaling Logistics: Iftikhar Arif highlighted that digital integration allows for more efficient last-mile delivery, reducing the high return rates historically associated with the informal economy.
FinTalk: The Mathematics of Inclusion
The forum’s final technical burst, “The Mathematics of Inclusion,” delivered by Ibtisam Babar, Zindigi (JS Bank), showcased the human side of data. The talk demonstrated how “lifestyle apps” are moving beyond simple banking to offer Gen Z access to stock markets and instant loans based on alternative data. This “mathematics” allows the unbanked to build a credit history without traditional collateral, effectively digitizing the “street-smart” energy of Pakistan’s youth and a product designed for them.
Mapping the Digital Future
The closing lens synthesized the day’s discussions into a forward-looking roadmap. The success of Pakistan’s trajectory beyond 2025 is contingent on the coordination between regulators like the SBP, SECP, and PVARA. The forum concluded that while the compliance burden has increased, it has provided the legitimacy required to attract foreign direct investment. By replacing traditional land-based collateral with technology-driven financing and formalizing the $300 billion digital asset space, Pakistan is no longer just experimenting, it is building the foundations of a resilient, secure, and inclusive digital-first economy.
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