Pakistan’s fintech bet pays off in a new era for South Asian finance

"Pakistan is undoubtedly a rising star in digital assets, even if this is still a “honeymoon phase” for the South Asian country in a notoriously volatile fintech segment. How Pakistan responds to its first major crypto shock will ultimately reveal the depth of its commitment."

This is what Forbes has reported on Pakistan’s current fintech landscape. Fintech’s centre of gravity in South Asia may finally be shifting, and Pakistan is emerging as the region’s unexpected powerhouse. For years, India’s dominance kept neighbouring fintech ecosystems in its shadow. Pakistan, Bangladesh and Nepal lagged behind, adopting digital finance slowly and attracting limited investor interest.

Read: Digital transformation shapes Pakistan's banking horizon

Over the past three years, that map has begun to change. Pakistan is accelerating the fastest, supported by regulatory backing, a recovering investment pipeline and early moves in digital assets, a space where regional peers remain cautious.

Funding climbed from US$10.4 million in 2019 to US$150m in 2022 before global macroeconomic pressures derailed investor confidence. In 2023, rising interest rates and a global retreat from high-growth tech pushed investment down to US$12.5m.

The rebound has been strong. Funding doubled to US$26.3m in 2024 and reached US$52.5m in the first half of 2025. By late November, Pakistan’s fintech ecosystem had secured US$391m in total venture capital and included close to 450 companies.

The standout deal of 2025 was Haball’s US$52m pre-Series A round. Meezan Bank, the country’s largest Islamic lender, provided US$47m, a sign that traditional banks are no longer resisting digital entrants and are instead choosing to collaborate with them.

Regulation has evolved alongside investment. The Pakistan Startup Fund is offering equity-free grants to attract venture capital, while the State Bank has introduced a full digital bank licensing framework. Five digital banks, including Easypaisa and Mashreq Bank, began pilot operations in early 2025. These measures aim to lift adult financial inclusion from 64% in 2023 to 75% by 2028.

As SBP Governor Jameel Ahmad said in March 2024, “When more people have access to financial services, it creates a broad base of consumers, savers and entrepreneurs… especially in countries like Pakistan where the informal economy remains widespread.” Pakistan is positioning financial inclusion not simply as social welfare but as a way to formalise the economy and support long-term growth.

Pakistan is also moving ahead of its neighbours in digital assets. Bangladesh and Nepal have declared cryptocurrencies illegal, while Pakistan has avoided a complete ban. In earlier years this created a regulatory grey zone, but the situation is now shifting. Work on a formal virtual asset framework has begun, signalling a move from passive tolerance to structured oversight.

Pakistan is emerging as the most assertive fintech player in South Asia. Unlike Bangladesh and Nepal, both of which have outlawed cryptocurrencies, Pakistan avoided a blanket ban and is now moving toward a formal virtual asset framework. The shift from a regulatory grey zone to structured oversight marks a major strategic turn.

Bangladesh and Nepal offer a sharp contrast. In Bangladesh, between 40% and 50% of the population remains unbanked and the government aims for 75% digital transactions by 2027, yet crypto remains banned. Nepal’s fintech market is smaller, with mobile banking penetration at 73% and digital wallets at 64%, and it also maintains a strict prohibition on crypto activity.

Read More: SBP invites fintechs to join sandbox pilot

Pakistan, meanwhile, is gaining influence in global crypto governance. Bilal Bin Saqib, Chief Advisor to the Finance Minister for the Pakistan Crypto Council, has joined the World Economic Forum’s Steering Committee on Digital Asset Regulations. Global investors are responding. Andreessen Horowitz recently led a US$12.9m round for ZAR, a Pakistani startup developing a dollar-backed stablecoin designed for mass use through retail agents and kiosks.

Pakistan is the only market in the region pairing a funding revival with regulatory agility and openness to digital assets. This combination gives it a head start in shaping the next phase of South Asia’s fintech growth.

South Asia’s fintech landscape is no longer defined by India alone. Pakistan has become the most assertive player, combining a funding rebound, strong bank–fintech partnerships, a digital bank rollout and a growing role in global digital asset governance.