Finance Minister Highlights Tech Innovation's Crucial Role

Embracing the Digital Revolution: Pakistan's Path to Blockchain and Financial Inclusion

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized the importance of integrating blockchain and digital assets into Pakistan’s economic framework. He highlighted that millions of Pakistanis, especially the youth, are already involved in these technologies, signaling a significant shift that must be embraced as part of the country’s evolving economy.

The minister made these remarks during the 'Leadership Summit on Blockchain and Digital Assets: Technology and Innovation' held in Islamabad. The event was organized in collaboration with LUMS and brought together key players from academia, industry, and government to discuss the future of blockchain and digital assets in Pakistan.

In his keynote address, the finance minister stressed the need for technological innovation to align with the global movement toward a digital economy. While Pakistan is making progress in achieving macroeconomic stability, he pointed out that the next challenge is to actively participate in shaping the new economy driven by blockchain, artificial intelligence, and Web 3.0 technologies.

He noted that approximately 20 to 25 million Pakistanis, predominantly young people, are engaged in blockchain and digital asset activities. "This level of participation cannot be overlooked," he said, emphasizing the need for recognition, education, and structured policies to harness this growing trend.

Senator Aurangzeb outlined three main drivers for blockchain adoption in Pakistan: financial inclusion, transparency, and speed. By enabling faster, cheaper, and more efficient transactions, blockchain technology can provide critical solutions across various sectors such as banking, remittances, agriculture, IT, freelancing, and energy. He cited examples like the development of e-KYC systems through blockchain, which reduce duplication in compliance processes within the banking sector.

The regulatory aspect of this transformation was also a central theme. The minister warned that ignoring digital assets could expose Pakistan to risks related to KYC, AML, sanctions, and monitoring, potentially undermining progress on the FATF front. He highlighted the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA), whose first meeting is scheduled for the following week, as a milestone in creating a balanced regulatory framework.

Senator Aurangzeb emphasized the importance of learning from international models, such as those in Dubai, Singapore, and the EU, while ensuring that national interests remain at the forefront. He commended the support received from international experts and organizations in helping Pakistan fast-track its regulatory and policy frameworks.

Reflecting on the broader vision, the minister reiterated the government's commitment to creating an environment that supports innovation while allowing the private sector to lead. He also acknowledged the role of academia in providing knowledge and talent. "This trilateral partnership between government, academia, and the private sector is essential for scaling up our journey into the new economy," he stated.

He concluded by highlighting the crucial role of Pakistan's youth as the driving force behind this transition. "We must harness their energy, channel it through education and regulation, and integrate it into a system that strengthens the economy while safeguarding national interests. This is not just about keeping pace with global change—it is about ensuring Pakistan's rightful place in the new economy."

The minister expressed appreciation for the leadership shown by LUMS and the organizers of the summit, reaffirming the government's commitment to supporting initiatives that accelerate Pakistan's journey into a digital and blockchain-driven future.