Pakistan’s central bank has confirmed plans to roll out a pilot program for a central bank digital currency (CBDC), marking a major step in modernizing the nation’s financial infrastructure. Speaking at the Reuters NEXT Asia summit in Singapore, Governor Jameel Ahmad stated the pilot will begin soon, backed by new legislation to regulate the virtual asset sector.
The move positions Pakistan among countries like India and Nigeria, which are actively experimenting with blockchain-based digital currencies. The digital currency initiative is part of a wider financial reform effort aimed at improving transparency, accessibility, and oversight in digital finance.
Pakistan’s Central Bank Moves Toward Digital Currency Era
Governor Ahmad announced that the State Bank of Pakistan is close to launching its CBDC trial as part of broader modernization efforts.
He emphasized that the legal groundwork, including the new Virtual Assets Act, 2025, is nearly finalized. This law will guide the licensing and regulation of the virtual asset space and ensure responsible innovation.
Pakistan has laid the foundation for this move through previous legislation, such as the Electronic Money Institution law, which required digital money issuers to meet regulatory standards. The central bank is also collaborating with technology partners to build the necessary infrastructure for the pilot phase.
New Regulation to Strengthen Pakistan’s Crypto Sector
State Minister for Blockchain and Crypto, Bilal bin Saqib, confirmed that the Virtual Assets Act, 2025 has been passed. It sets up an independent authority that will monitor and license digital asset firms. This law is expected to provide a safer and more transparent environment for crypto-related businesses.
Bilal also revealed talks with MicroStrategy Chairman Michael Saylor about creating national Bitcoin reserves. Meanwhile, Binance founder Changpeng Zhao has joined as a strategic advisor to support Pakistan’s crypto roadmap. These moves indicate a clear shift in the country’s stance on cryptocurrency regulation and adoption.
The Pakistan Crypto Council (PCC) has also been established to promote digital asset adoption and explore renewable energy usage for mining. Combined, these measures show Pakistan’s intent to align with global developments in the digital finance sector.
Economic Reforms and Inflation Control Remain Priorities
While focusing on digital finance, the central bank continues to manage inflation and stabilize the economy. Governor Ahmad noted that the central bank is maintaining a cautious monetary approach, even after reducing interest rates from 22% to 11% over the past year.
Inflation fell from a peak of 38% in May 2023 to 3.2% by June 2025. The average inflation rate for the fiscal year stood at 4.5%, the lowest in nearly a decade.
These improvements are partly credited to the ongoing $7 billion IMF program, which runs until 2027 and supports reforms in key sectors like fiscal policy and exchange rate management.
