Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, announced that the country is preparing to launch a pilot project for a central bank digital currency (CBDC) and is finalising a legislative framework to regulate virtual assets.
Speaking at the Reuters NEXT Asia Summit in Singapore, Ahmad stated that Pakistan is “building up our capacity on the central bank digital currency,” and expressed hope that a pilot launch would take place soon.
The initiative aligns Pakistan with countries like China, India, Nigeria, and several Gulf states, which have begun controlled trials or issued digital currencies in response to the growing global interest in blockchain-based payments and virtual assets.
Virtual Assets Act, Independent Regulator Approved
Ahmad revealed that a new law titled the Virtual Assets Act, 2025 has been approved by the government. The legislation will lay the groundwork for licensing and regulating the country’s emerging crypto sector and create an independent regulator to oversee it.
Pakistan’s State Minister on Blockchain and Crypto, Bilal bin Saqib, confirmed the development, highlighting that the law would provide a structured pathway for virtual asset integration into the financial ecosystem.
The new legal framework is being developed in consultation with technology partners and builds on the efforts of the Pakistan Crypto Council (PCC), which was launched in March to advance the country’s role in the digital finance world.
PCC is currently exploring bitcoin mining using surplus electricity, has brought Binance founder Changpeng Zhao onboard as a strategic adviser, and is planning to establish a state-run bitcoin reserve. It has also initiated discussions with US-based crypto firms, including World Liberty Financial.
CBDC, Risk and Opportunity
Ahmad noted that while the sector presents risks, it also offers vast opportunities.
“There are risks associated, and at the same time, there are opportunities in this new emerging field. So we have to evaluate and manage the risk very carefully,” he said.
In May, the SBP clarified that virtual assets are not illegal in Pakistan, but advised financial institutions to wait until a proper licensing regime is implemented.
Inflation Control and IMF Programme
On the monetary front, Ahmad confirmed the SBP would continue with a tight policy stance to maintain inflation within the 5–7% medium-term target.
Inflation has dropped sharply—from a record 38% in May 2023 to just 3.2% in June 2025, averaging 4.5% for the recently concluded fiscal year—Pakistan’s lowest in nine years.
SBP has lowered its benchmark interest rate from 22% to 11% over the past year, and Ahmad credited the monetary policy for helping stabilize both inflation and the external account.
Ahmad said the foreign reserves now stand at $14.5 billion, up from under $3 billion two years ago.
He reiterated that the $7 billion IMF programme, set to conclude in September 2027, is on track, and major reforms in energy pricing, fiscal management, and the foreign exchange market have been implemented.
On questions regarding possible military equipment purchases from China, Ahmad stated he had no knowledge of any such financial planning.
