Digital exchanges eye Pakistani investors

Geopolitical shifts boost interest in country's online asset ecosystem

KARACHI:

Several global exchange companies are focusing on Pakistan's market to attract investors after the military crisis in the Middle East shifted their interest in different venues, particularly to multiple high-dividend, accessible, and secure options.

Industry experts say geopolitical uncertainty in the Middle East, coupled with changing investor preferences and the rapid expansion of digital finance, has encouraged several international trading platforms to explore opportunities in the Pakistani market.

Pakistan has traditionally been a significant source of overseas investment, particularly in real estate across the Gulf Cooperation Council (GCC) countries. Industry estimates suggest that Pakistanis invest billions of dollars annually in overseas property markets and rank among the largest foreign investors in real estate in several Gulf states. However, recent geopolitical developments have prompted many investors to diversify their portfolios beyond conventional real estate holdings.

Ibrahim Amin, an analyst specialising in real estate and banking, said the military conflict in the Middle East has temporarily shifted the investment preferences of many Pakistani investors from regional property markets towards more liquid global assets, particularly cryptocurrencies and internationally traded securities.

He added that the banking regulator's recent changes to the minimum profit rate requirements for commercial banks may further encourage investors seeking higher returns to diversify into international investment products, including global equities, exchange-traded funds (ETFs) and digital assets in addition to investments in gold and real estate in major cities.

Amin pointed out that digital asset exchanges had previously received a strong response from Pakistani investors. However, investor interest slowed after the government announced plans to introduce a regulatory framework for digital assets in Pakistan. Amid the prevailing geopolitical uncertainty, several global digital exchanges are now stepping up efforts to attract Pakistani investors by positioning themselves as secure and accessible investment platforms.

Despite the absence of a fully developed regulatory framework in previous years, Pakistan has emerged as one of the world's fastest-growing cryptocurrency markets. Industry estimates suggest that Pakistani investors hold between $25 billion and $30 billion worth of digital assets across various international platforms, with more than 20 million people participating in the crypto ecosystem.

Gracy Chen, Chief Executive Officer of Bitget, said Pakistani retail investors have become increasingly familiar with cryptocurrencies and stablecoins, but access to international financial markets, including global equities, ETFs, commodities and foreign exchange products, remains fragmented. "Many Pakistani retail traders and digital asset users are comfortable using crypto platforms, but investing in international stocks and other global assets often requires multiple accounts across different financial institutions," she said.

According to Chen, global exchanges are responding by introducing integrated platforms that provide access to multiple asset classes through a single interface.

She said Bitget's Universal Exchange (UEX) model combines cryptocurrencies, tokenised equities, commodities, foreign exchange products and AI-assisted trading tools, allowing investors to manage diversified portfolios without switching between separate crypto exchanges, stockbrokers and commodity trading platforms. "Our objective is to simplify global market access by bringing multiple asset classes together on one platform," she said. "This reflects a broader industry trend in which digital asset exchanges are evolving into comprehensive multi-asset investment platforms."

Bitget's UEX framework currently offers tokenised equity-linked products connected to some of the world's largest listed companies, including Apple, Microsoft, Nvidia, Amazon, Meta and Tesla, enabling investors to gain exposure to international markets through blockchain-based financial products.

Affluent Pakistanis have traditionally allocated their investments across domestic and overseas real estate, gold and equities. However, younger investors are increasingly embracing cryptocurrencies and other digital assets due to easier accessibility, technological familiarity and the potential for portfolio diversification.