Meeting reviews progress on digital asset framework

A consultative meeting was convened at the Finance Division on Friday, co-chaired by Federal Minister for Finance Muhammad Aurangzeb and PVARA Chairman Bilal bin Saqib, to discuss and advance work on Pakistan's national digital asset framework.

State Bank of Pakistan (SBP) governor along with presidents and executives of Pakistan's leading commercial banks and senior leadership from Binance, including Global CEO Richard Teng, participated in the discussion, according to a statement issued by the finance ministry.

The session reviewed Pakistan's next steps towards building a secure, well-regulated and innovation-driven digital asset ecosystem, with a particular emphasis on responsible, enhanced compliance standards, improved market transparency, and stronger integration of regulated financial institutions.

Aurangzeb reiterated the commitment to establishing a robust and forward-looking regulatory environment that supports technological innovation while safeguarding national economic interests.

He noted that close coordination between government agencies, licensed global exchanges and domestic banks remains essential for modernising the payments landscape, improving financial inclusion and aligning national systems with international standards.

Binance delegation, comprising senior leaders, provided insights into global market trends and Pakistan's rapidly expanding role in the digital asset space.

Aurangzeb acknowledged that Pakistan's rapid digital asset adoption reflects an irreversible global trend and underscored the economic opportunity to bring citizen-held virtual assets within formal monitoring structures. Such integration will strengthen financial visibility, support creditworthiness assessments and enhance national asset reporting without conferring legal tender status on digital assets.

Participants reviewed opportunities to modernise the digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country's $38 billion annual remittance flows. Discussions also emphasised the need for building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.

The meeting examined sovereign debt tokenisation to enhance liquidity, widen investor access and position Pakistan as a regional frontrunner in compliant blockchain-based financial instruments.

Participants outlined the principles for a practical taxation and compliance framework, including shifting primary oversight to licensed exchanges, designing a gradual capital gains structure to promote stability and considering a time-bound amnesty to encourage users to move assets onto regulated platforms.

They stressed the need for strong verification and risk-mitigation systems to ensure sustainability and compliance with international standards.