Pakistan reviews tokenising existing Eurobond debt, minister says

Pakistan is reviewing whether to tokenise its existing Eurobond debt, Finance Minister Muhammad Aurangzeb said, even as he told banks they may not invest in, trade or hold virtual assets from their own funds or customer deposits. The review, disclosed at a digital assets dialogue organised by the Pakistan Banks' Association and LUMS, would put a sovereign debt instrument on a blockchain while the same government keeps lenders at arm's length from crypto.

Aurangzeb framed digital assets as a tool for cheaper remittances, faster business payments, financing for entrepreneurs and more productive investment. "Pakistan needs financial innovation, and digital assets must complement the broader digital transformation," he said, adding that the shift must come with regulatory safeguards, financial stability and institutional oversight.

The legal groundwork is the Virtual Assets Act 2026, which created the Pakistan Virtual Assets Regulatory Authority to license and supervise virtual asset service providers. Aurangzeb said the next priority is effective implementation through capable supervision and institutional coordination. The State Bank of Pakistan has set a conditional mechanism for banks to serve licensed entities, subject to due diligence and segregation of client funds; accounts opened for entities holding no-objection certificates serve a limited purpose until licensing is complete, and banks remain responsible for foreign exchange compliance.

The minister tied the agenda to export-led growth after what he described as macroeconomic stability, and pressed banks to widen financing for small and medium enterprises and agriculture. He also pointed to tokenisation as a way to improve remittance channels, including transactions linked to Roshan Digital Accounts. Pakistan received $41.6 billion in remittances last fiscal year, and first-quarter trends suggest inflows could exceed $44 billion, according to the minister.