ISLAMABAD — Pakistan is advancing from economic stabilisation toward sustainable growth, Finance Minister Muhammad Aurangzeb said, identifying fiscal discipline, export expansion and private investment as the pillars of long-term progress.
Addressing a Pakistan Banks Association event virtually, the minister said the country requires financial innovation that lowers the cost of doing business and draws more people into the formal economy.
Digital Assets Tied to Economic Benefit
Aurangzeb said digital assets should be integrated into the financial system on the basis of their real economic benefits and their capacity to facilitate business activity, rather than treated as a single, undifferentiated category.
He pointed to the use of deposit tokens for institutional customers on blockchain networks as a practical example of digital financial innovation. He noted that Project Agorá of the Bank for International Settlements is examining tokenised bank deposits, while the central bank is exploring cross-border payment possibilities through deposits.
“The regulatory framework must separately consider different types of digital assets and the economic activities associated with them,” he said, adding that the risks posed by unbacked crypto assets differ from those of other instruments.
Legal Framework for Virtual Assets
The minister said a legal framework has been established under the Virtual Assets Act 2026, with the Pakistan Virtual Assets Regulatory Authority (PVARA) responsible for licensing and supervising virtual asset service providers. He credited the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan with key roles in developing the regulatory architecture.
Aurangzeb also underscored the banking sector’s responsibility for safeguarding funds and managing technology-related risks, describing banks as fundamental to effective service delivery for consumers.
Remittances and Export Momentum
Highlighting external sector performance, the finance minister said Pakistan received $41.6 billion in remittances during the last fiscal year, with the figure expected to exceed $44 billion in the current year. He said rising exports were part of the same growth trajectory.
He cautioned that the expansion of digital financial systems leaves no room for complacency on cybersecurity, calling for vigilance as the country deepens its reliance on digital infrastructure.
