Islamabad (Commerce Desk): Finance Minister Muhammad Aurangzeb has said that Pakistan is moving from economic stability towards sustainable growth, for which fiscal discipline, increased exports and the promotion of private investment are essential.
Addressing an event of the Pakistan Banks Association virtually, he said the country needed financial innovation that could help reduce business costs and bring more people into the formal economy. Digital assets should be incorporated into the financial system on the basis of their genuine economic benefits and the convenience they offer to businesses.
According to the finance minister, digital innovation should serve as a means of expanding access to financial services and improving the efficiency of business activities. The use of deposit tokens for institutional customers on blockchain networks is a practical example of this approach. The Bank for International Settlements’ Project Agorá is examining tokenised bank deposits, while the possibilities of cross-border payments through central bank reserves are also being explored.
Muhammad Aurangzeb said that in the era of digital technology, protecting funds and managing risks were major responsibilities of banks, while they also played a fundamental role in delivering services to customers.
He said a legal framework had been established in Pakistan under the Virtual Assets Act 2026, while the Pakistan Virtual Assets Regulatory Authority (PVARA) was responsible for licensing and supervising virtual asset service providers. The State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) were also playing important roles in developing the regulatory framework for digital assets.
The finance minister said the risks associated with unbacked crypto assets varied in nature. Therefore, the regulatory system would need to consider each type of digital asset and the economic activities associated with it separately.