Embracing the New Economy: Aurangzeb Champions Digital Assets
ISLAMABAD — Finance Minister Muhammad Aurangzeb on Saturday acknowledged that Pakistan’s banking system is more complex compared to those in other countries, highlighting the urgent need to shift toward blockchain technology and digital assets.
He expressed surprise over the absence of Bilal Bin Saqib — the Prime Minister’s Special Assistant on Blockchain and Cryptocurrency — at the Leadership Summit on Blockchain and Digital Assets: Technology and Innovation, noting that Saqib’s presence would have been particularly significant. Nonetheless, Aurangzeb affirmed that his ministry remains open to engaging with the summit organizers.
Aurangzeb reiterated the intricacy of Pakistan’s banking infrastructure and called for enhanced legislation overseeing digital investments. He further disclosed that the government is considering crypto mining and has already set up a crypto council to study its regulatory and economic implications.
Regulatory Framework
The minister emphasized the importance of properly regulating this transformation. He cautioned that ignoring digital assets could expose Pakistan to risks related to KYC (Know Your Customer), AML (Anti-Money Laundering), sanctions, and oversight — potentially reversing the nation’s hard-won progress in exiting the FATF grey list, which took five years. “We have no intention of re-entering that cycle,” he asserted.
As a central step toward balanced regulation, he announced the formation of the Pakistan Virtual Assets Regulatory Authority (PVARA), with its inaugural meeting scheduled for next week. Aurangzeb called for drawing on the international experience of jurisdictions like Dubai, Singapore, and the EU, while prioritizing Pakistan’s national interests. He praised international experts and organizations for helping fast-track regulatory and policy frameworks.
Aurangzeb stressed that embracing blockchain is key to fostering innovation, financial inclusion, and transparency amid rising youth engagement in digital assets. “We have to accelerate our journey in adopting transformative technologies like blockchain and digital assets, with full government support,” he said, noting that 20–25 million Pakistanis, particularly youth, are already involved in such activities. “This scale of participation cannot be ignored,” he added, urging for acknowledgment, education, and structured policy responses.
In his view, Pakistan is at a pivotal moment: while macroeconomic stability is improving, the country must now actively shape the new economy fueled by blockchain, artificial intelligence, and Web 3.0. He identified three key drivers for blockchain adoption in Pakistan: financial inclusion, transparency, and speed — envisioning faster, cheaper, and more efficient services in banking, remittances, agriculture, IT, freelancing, and energy.
As a practical example, he cited the ongoing use of blockchain-powered e-KYC systems, which reduce redundant compliance procedures across banks.
“We must harness this energy through education and regulation, embedding it within a system that strengthens the economy while protecting national interests. This isn’t just about keeping pace with global change — it’s about securing Pakistan’s place in the new economy,” he affirmed.
He also underscored the government’s commitment to creating an enabling environment where the private sector leads innovation, supported by academia’s knowledge and talent. “This trilateral partnership — among government, academia, and private enterprise — is essential for scaling our progress in the new economy,” he concluded.
