The State Bank of Pakistan (SBP) is preparing to launch a pilot for a digital currency and is finishing legislation to regulate virtual assets, Governor Jameel Ahmad said Wednesday while the country increased efforts to modernize its financial system.
Central banks worldwide are exploring the use of digital currencies as interest in blockchain based on payments grows. Pakistan’s movement follows similar steps by regulators in China, India, Nigeria and several Gulf states to evaluate or issue digital currencies through controlled pilot programs.
To the Reuters Asia’s next summit in Singapore, Ahmad said that Pakistan was “accumulating our capacity in the digital currency of the Central Bank” and hoped to launch a pilot soon.
I was talking on a panel along with the governor of the Central Bank of Sri Lanka, P nandal Weasinghe, and both discussed monetary policy challenges in southern Asia.
Ahmad said a new law “would establish the foundations for license and regulation” of the virtual asset sector and that the Central Bank was in contact with some technological partners.
The measure is based on the efforts of the Crypto Council of Pakistan backed by the Government, established in March to promote the adoption of virtual assets. The PCC is exploring Bitcoin mining using surplus energy, has appointed the founder of Binance Changpeng Zhao as strategic advisor and plans to establish a state bitcoin reserve.
He has also had conversations with cryptographic signatures based in the United States, including the Financial World Liberty linked to Trump.
In May, the SBP clarified that virtual assets were not illegal. However, he advised financial institutions not to get involved with them until a formal license framework was in force.
“There are associated risks, and at the same time, there are opportunities in this new emerging field. Therefore, we have to evaluate and manage the risk very carefully, and at the same time not allow the opportunity,” he said on the panel.
On Wednesday, Pakistan Minister of State in Blockchain and Crypto, Bin Saqib Billal, said in a statement that the Pakistan government had approved the 2025 Virtual Assets Law, creating an independent regulator to license and supervise the cryptographic sector.
ATTRACK
Ahmad said that the Central Bank would continue to maintain an adjusted policy position to stabilize inflation within its medium -term target of 5 to 7 percent.
Pakistan has reduced its reference rate from a peak of 22pc to 11pc over the past year, since inflation fell from 38 percent in May 2023 to 3.2pc in June, averaging 4.5pc in fiscal year 2025 has just finished, a nine -year bass.
“Now we are seeing the results of this close monetary policy transfer, both in our inflation and in the external account,” he said.
Ahmad said that Pakistan was not too exposed to the weakness in dollars, noting that his foreign debt was mostly called dollars and only 13 PC included Eurobonds or commercial loans.
“We see no important impact,” he said, adding that the reserves had increased to $ 14.5 billion of less than $ 3 billion two years ago.
Ahmad said the IMF program of $ 7 billion $ 7 billion of Pakistan, which extends until September 2027, was on their way and had resulted in reforms in fiscal policies, energy prices and the currency market.
“We are sure that after that (IMF program), perhaps we will not require an immediate (monitoring).”
When asked if Pakistan had financing plans aligned for the next purchases of military teams, particularly imports from China, the governor of the Central Bank of Pakistan said he was not aware of such plans.
