Pakistan is set to launch a digital rupee, signaling a major move toward a digital-first economy.
The State Bank of Pakistan (SBP) is piloting a central bank digital currency (CBDC), with a full launch planned for within the current fiscal year. This initiative is part of a broader government push to modernize the financial system and expand financial inclusion.
Key Highlights:
* Digital Rupee in the Works: The SBP is actively working on a digital version of the Pakistani Rupee, which would be a direct liability of the central bank, similar to physical cash.
* Financial Inclusion: A digital rupee could significantly enhance financial inclusion by providing a secure, low-cost payment option for millions of unbanked citizens, especially those with mobile phones.
* Modernizing Payments: This move is expected to complement existing digital payment systems like RAAST, providing a more efficient and transparent way to handle transactions, reduce cash handling costs, and improve government accountability.
* Legal Framework: The government has been working on a legal and regulatory framework to support digital assets and a CBDC. The newly enacted Virtual Assets Act of 2025 and the formation of the Pakistan Crypto Council are key steps in this direction.
* Global Trend: Pakistan joins a growing number of countries around the world exploring or implementing CBDCs to keep pace with global digital finance trends.
This is a significant development that could reshape Pakistan's financial landscape, fostering innovation, and creating new economic opportunities.