Pakistan is making a bold, strategic push toward launching its own digital currency, aligning itself with global trends in financial innovation. Here’s a concise breakdown:

🏦 Central Bank Digital Currency (CBDC) Pilot

In early July 2025, the State Bank of Pakistan (SBP) announced that it’s preparing to launch a pilot for a CBDC—essentially a digital version of the Pakistani rupee, issued and backed by the central bank.

This pilot is expected to be operational within the current fiscal year (by June 2026), potentially launching within the next 1–2 months (Arab News).

📑 Regulatory Framework: PVARA & Virtual Assets Act

Pakistan has enacted the Virtual Assets Ordinance, 2025, establishing the Pakistan Virtual Assets Regulatory Authority (PVARA)—an independent federal regulator responsible for licensing and supervising digital asset providers.

The legislation includes anti–money laundering safeguards, consumer protections, and even oversight compatibility with Islamic banking (Shariah compliance) .

🤝 Government-Backed Crypto Governance

In March 2025, the Pakistan Crypto Council (PCC) was created under the Ministry of Finance, chaired by Finance Minister Muhammad Aurangzeb, with Bilal Bin Saqib as CEO (also Special Assistant on Blockchain with Minister of State rank.

The PCC has been proactive, including:

Building a Strategic Bitcoin Reserve.

Using 2,000 MW of surplus electricity for Bitcoin-mining and AI data centres.

Appointing Changpeng Zhao (Binance founder) as a strategic advisor.

🔍 Why Now?

The move is designed to:

Modernize Pakistan’s financial system, reduce reliance on cash, and integrate blockchain and virtual assets.

Expand the tax base—analysts estimate digital asset regulation could bring ~$25 billion into the formal economy.

Leverage energy surplus, turning excess power into infrastructure for both crypto and AI sectors.

⚠️ Balancing Innovation and Risk

SBP has emphasized caution: the sector is being regulated carefully—banks are currently barred from involvement until licensing is in place .

Cybersecurity experts have highlighted the need for robust privacy safeguards, noting that a state‑issued digital currency could potentially enable surveillance if mismanaged .

📌 Summary

Pakistan’s journey toward its own digital currency is well underway:

A CBDC pilot is imminent, with regulatory and technical groundwork mostly set.

PVARA provides the legal and compliance framework.

The PCC, with strong leadership and global advisory, is spearheading adoption.

The strategy centers on modernization, economic inclusion, and global competitiveness, with measured oversight to mitigate financial and security risks.

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