ISLAMABAD: Pakistan is moving toward a regulated virtual-assets framework as the government looks to use blockchain and tokenization to cut remittance costs, expand financing for small businesses, manage sovereign debt and widen financial inclusion, Finance Minister Muhammad Aurangzeb said.
Aurangzeb made the comments during a series of high-level meetings in New York on the opening day of the U.N. General Assembly’s High-Level Week, according to a statement released Tuesday by the finance ministry.
Speaking at an event titled “United Nations Digital Cooperation Day 2026 — Blockchain and the Tokenized Future: Sovereign Choices and Safeguards for Next-Gen DPI,” the senator said tokenization must be linked to real economic needs rather than pursued for its own sake. He cited cheaper remittances, financing for small and medium-sized enterprises, sovereign debt and broader financial access as priorities.
He said private-sector innovation in digital finance should be matched by strong government safeguards, inclusive digital infrastructure and international cooperation, adding that emerging economies must be involved in setting global standards for the sector.
Aurangzeb also addressed Pakistan’s vulnerability to climate-related disasters at the World Economic Forum’s “Financing Planet and Prosperity” meeting, pointing to the damage recurring floods have caused to infrastructure and communities.
He described government efforts to strengthen disaster-response systems, early-warning networks and costed climate-investment plans, and said international assistance must be matched by domestic resources and fiscal buffers.
The finance minister said financing has been mobilized through the World Bank, the Asian Development Bank and international capital markets for relief, adaptation and reconstruction. But he warned against complacency and called on international climate funds, including the Green Climate Fund and the Loss and Damage Fund, to simplify their procedures and speed up access to financing.
Aurangzeb also took part in the launch of the COP31 Action Agenda, where he said Pakistan fully supports the plan, calling it closely aligned with the country’s national climate priorities and its third round of Nationally Determined Contributions, or NDC 3.0.
He pointed to shared priorities including clean energy and electrification, renewable energy expansion, energy-efficient buildings, climate-resilient cities, climate education and public awareness, and food security through climate-resilient agriculture.
He welcomed the proposed Climate Implementation Bridge, calling it a way to turn climate commitments into investable, bankable projects. He said the main challenge now is implementation rather than planning, and praised the agenda’s defined action points and performance indicators as practical and focused on measurable results.
Pakistan’s push toward a regulated virtual-assets framework follows the passage of the Virtual Assets Act, 2026, by Pakistan’s parliament in March. The law converted the Pakistan Virtual Assets Regulatory Authority, first created by presidential ordinance in July 2025, into a permanent federal body with power to license and supervise virtual asset service providers, including exchanges, custodians and token-issuance firms. It also introduced criminal penalties for unlicensed crypto operations, including fines up to 50 million rupees, or about $179,000, and prison terms of up to five years. Authority Chairman Bilal Bin Saqib has said the agency is developing banking rails with the State Bank of Pakistan as it moves toward a full licensing framework aligned with international anti-money-laundering standards.
