Islamabad – In an encouraging step toward a modern financial future, the State Bank of Pakistan (SBP) has reaffirmed its commitment to introducing a robust digital currency landscape. Under the existing Foreign Exchange Regulation Act (FERA), the annual $100,000 limit on foreign transfers will also apply to digital currency channels—an important bridge between prudence and innovation that supports a responsible roll-out of new financial technologies.
SBP Acting Deputy Governor, Dr Inayat Hussain, highlighted that while the $100,000 cap applies, the central bank is zealously building the infrastructure for a central bank digital currency (CBDC)—a digital rupee that mirrors the value of the physical rupee and can be held seamlessly in existing bank accounts. This bold initiative awaits parliamentary approval of the Pakistan Virtual Assets Regulatory Authority (PVARA) Bill and necessary amendments to the SBP Act, paving the way for a secure, licensed digital-finance ecosystem.
The government’s proactive approach is already bearing fruit. The newly established PVARA is designed to safeguard innovation by establishing licensing frameworks for services such as advisory, custody, exchanges, lending, derivatives, and more. Moreover, the authority will be supported by recognized international standards—including FATF, anti-money laundering laws, and strengthened compliance oversight—to ensure transparency and stability.
During the Senate Standing Committee on Finance session, legal experts and legislators acknowledged the challenges of adapting old statutes to new technologies. Their discussion reflects the wisdom and readiness in Pakistan’s approach—not to rush innovation, but to advance it with care and clarity. The committee further proposed eligibility criteria for PVARA leadership, emphasizing expertise in digital finance and technology.
In short, Pakistan is thoughtfully aligning its financial system with global innovation while retaining safeguards—empowering citizens and businesses with digital access, balanced by trusted regulation. This is what progress feels like.
