Pakistan is considering converting its existing Eurobond debt into digital tokens as part of its efforts to explore blockchain technology and modernize the financial sector.
Finance Minister Muhammad Aurangzeb announced the proposal on Monday during a dialogue on digital assets and the future of banking, organized by the Pakistan Banks’ Association in collaboration with LUMS.
The Ministry of Finance is currently reviewing the initiative and plans to seek Cabinet approval before issuing a request for proposals (RFP). The government has not yet finalized the plan or started the bidding process.
The proposed initiative would explore how tokenization could be applied to Pakistan’s existing sovereign debt, potentially creating new opportunities for digital financial transactions and investment.
Aurangzeb also urged banks to develop practical proposals around digital financial technologies and invest in the expertise required to assess emerging opportunities while coordinating with regulators.
Pakistan has already introduced a regulatory framework for virtual assets under the Virtual Assets Act 2026. The Pakistan Virtual Assets Regulatory Authority (PVARA) is responsible for licensing and supervising virtual asset service providers.
Meanwhile, the State Bank of Pakistan has allowed banks to provide conditional banking services to PVARA-licensed businesses, subject to due diligence and client fund segregation requirements. However, banks are still prohibited from investing in or holding virtual assets using their own funds or customer deposits.
The finance minister stressed that digital financial innovation must be supported by regulatory oversight, cybersecurity measures and appropriate safeguards to protect the financial system.
