Aurangzeb pushes for digital innovation to lower business costs
- Pakistan's remittances are projected to exceed $44 billion this fiscal year.
- Finance Minister Muhammad Aurangzeb advocates for digital innovation to lower business costs.
- The government is evaluating the tokenisation of existing Eurobond debt.
- The Virtual Assets Act 2026 established the PVARA to regulate digital assets.
- Authorities are prioritizing cybersecurity to protect digital financial systems.
Finance Minister Senator Muhammad Aurangzeb delivered a virtual keynote at the "Dialogue on Digital Assets and the Future of Banking" on 2 November 2026. The event was organised by the Pakistan Banks' Association in collaboration with LUMS.
Senator Aurangzeb stated that financial innovation is necessary to lower the cost of doing business, expand the formal economy, and improve access to financial services. He emphasised that the country's transition toward sustainable growth requires fiscal discipline, export growth, private investment, digital innovation, and stronger cybersecurity.
Remittances projected to exceed $44 billion
These remittances are identified as a potential use case for tokenisation. The country is transitioning from macroeconomic stability to sustainable growth, a process that requires fiscal discipline, stronger exports, and increased private investment.
Integration of digital assets and tokenisation
Finance Minister Senator Muhammad Aurangzeb said digital assets should be integrated into the financial system because they provide genuine economic benefits and facilitate business activities.
The government is currently evaluating the tokenisation of existing Eurobond debt and is seeking cabinet approval before it invites proposals for the initiative, according to the Finance Minister's announcement on 2 November 2026. This follows cabinet consideration of the proposal to tokenise existing Eurobond debt.
Aurangzeb cited international examples, including JPMorgan's use of deposit tokens for institutional money transfers.
Virtual Assets Act 2026 establishes regulatory oversight
Pakistan has established a legal framework for digital assets under the Virtual Assets Act 2026. This legislation created the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and supervise virtual asset service providers.
The regulatory framework overseen by the PVARA covers activities including asset management, custody services, and exchanges.
In August 2026, The Express Tribune reported that authorities had officially launched the virtual assets licensing system.
Managing cybersecurity and digital financial risks
Finance Minister Senator Muhammad Aurangzeb said banks have a vital role in protecting public funds and managing digital technology risks while maintaining effective services. Risks from unbacked crypto assets require separate consideration within the regulatory system.
He warned that the financial sector is under constant attack from state and non-state actors, urging the State Bank of Pakistan and banks to implement measures to address these dangers.
Pakistan to leverage G-24 chairmanship for digital debate
Pakistan plans to use its G-24 chairmanship to contribute to global discussions on digital assets. The country intends to bring the perspectives of developing economies to this debate.
Frequently Asked Questions
- Pakistan's remittances expected to exceed $44 billion this fiscal year: Aurangzeb (nation.com.pk)
- Pakistan eyes blockchain revolution as govt pushes financial innovation (dailytimes.com.pk)
- FinMin says government mulls tokenising existing Eurobond debt (tribune.com.pk)
- Fiscal Discipline, Export Growth And Private Investment Promotion Essential: Muhammad Aurangzeb (urdupoint.com)
- Aurangzeb (linkedin.com)
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