On July 9, 2025, State Bank of Pakistan Governor Jameel Ahmad announced plans to initiate a pilot for a central bank digital currency (CBDC) during a panel at the Reuters NEXT Asia summit in Singapore. The move aligns Pakistan with global efforts by countries like China, India, and Gulf states to explore blockchain-based payment systems. The central bank is also finalizing the Virtual Assets Act 2025, approved on the same day, to establish a regulatory framework for cryptocurrencies.
The legislation creates the Pakistan Virtual Asset Regulatory Authority (PVARA), an independent body tasked with licensing and overseeing crypto firms to ensure transparency and compliance with international standards, including those set by the Financial Action Task Force. The Pakistan Crypto Council, established in March 2025, is driving virtual asset adoption, with initiatives like bitcoin mining using surplus energy and partnerships with global crypto firms, including Binance’s founder Changpeng Zhao as a strategic advisor.
Pakistan’s economic reforms bolster this initiative, with foreign reserves rising to $14.5 billion from $3 billion two years ago and inflation dropping to 3.2% in June 2025 from a high of 38% in May 2023. The central bank has reduced its benchmark rate from 22% to 11%, maintaining a tight monetary policy to stabilize inflation within a 5–7% target. These developments, supported by a $7 billion IMF program through 2027, reflect Pakistan’s push to modernize its financial system while addressing economic challenges.
Published in SouthAsianDesk, July 10th, 2025
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