Pakistan is preparing to take a significant leap in its financial modernization journey with the announcement of a pilot program for a central bank digital currency (CBDC) and the drafting of new legislation to regulate the country’s virtual assets sector. Speaking at the Reuters NEXT Asia summit in Singapore, Governor of the State Bank of Pakistan Jameel Ahmad confirmed that the central bank is “building up our capacity on the central bank digital currency” and expects to launch a pilot project soon.
Ahmad shared the stage with Sri Lanka’s central bank governor, P. Nandalal Weerasinghe, as both discussed the evolving monetary policy landscape in South Asia. Highlighting the global momentum toward blockchain-based payment systems, Ahmad noted that Pakistan’s initiative is in line with efforts by central banks in China, India, Nigeria, and several Gulf nations that are either piloting or already issuing their own digital currencies.
He further revealed that Pakistan is finalizing a new legal framework that will lay the groundwork for licensing and regulating the virtual assets sector. This legislative push is intended to create a structured environment where innovation in digital finance can flourish under proper oversight. The central bank is also actively engaging with technology partners to ensure the proposed systems are secure and efficient.
This move builds upon earlier efforts by the Pakistan Crypto Council (PCC), a government-supported body launched in March to promote virtual asset adoption. The PCC has initiated several ambitious projects, including exploring bitcoin mining through surplus energy resources. It has also brought on board Binance founder Changpeng Zhao as a strategic adviser and aims to set up Pakistan’s first state-backed bitcoin reserve. In addition, the council has held discussions with various U.S.-based crypto companies, including World Liberty Financial.
In May, the State Bank of Pakistan clarified its stance on cryptocurrencies, stating that virtual assets are not illegal but advising financial institutions to hold off on engaging with them until a formal regulatory framework is established. Ahmad reinforced this cautious but open stance at the summit, acknowledging that while there are risks in this emerging field, there are also considerable opportunities. “We have to evaluate and manage the risk very carefully, and at the same time not allow to let go the opportunity,” he remarked.
On the same day, Pakistan’s state minister on blockchain and crypto, Bilal bin Saqib, announced that the federal cabinet had approved the “Virtual Assets Act, 2025,” which establishes an independent regulator dedicated to licensing and overseeing the crypto sector.
Amid these technological strides, Ahmad also provided updates on Pakistan’s economic health. The country has successfully reduced its benchmark interest rate from a high of 22% to 11% over the past year, as inflation dropped sharply from 38% in May 2023 to just 3.2% in June 2025. Foreign exchange reserves have improved significantly, rising to $14.5 billion from less than $3 billion two years ago. The governor also confirmed that Pakistan’s ongoing $7 billion IMF program remains on track, fostering reforms across fiscal policy, energy pricing, and the forex market.
With the rollout of a digital currency pilot and new crypto regulations, Pakistan is setting the stage for a more modern, transparent, and technology-driven financial sector, aligning itself with global trends and preparing for future economic competitiveness.
