Pakistan’s finance minister said Monday the government is considering tokenizing the country’s existing Eurobond debt, a move that would mark a significant step into digital asset management for sovereign borrowing.
Muhammad Aurangzeb told a banking industry conference in Lahore that discussions are underway and Cabinet approval is needed before the government issues a request for proposals. The event, “Dialogue on Digital Assets and the Future of Banking,” was organized by the Pakistan Banks’ Association with LUMS.
“We are reviewing at this point from the Ministry of Finance and Government of Pakistan, is tokenization of our existing Eurobond debt,” Aurangzeb said. “We are in discussions at this point, and we are looking forward to the Cabinet approval on this, before we move ahead with issuing the RFP on this front.”
The proposal signals Pakistan’s growing interest in blockchain-based financial instruments, which proponents say can broaden investor access and streamline debt management. Aurangzeb called on banks to help shape the effort, citing their customer relationships, operational experience and risk management capabilities.
He also pointed to the country’s developing regulatory architecture. The Virtual Assets Act 2026 created the Pakistan Virtual Assets Regulatory Authority to license and supervise virtual asset service providers, and the State Bank of Pakistan has opened a conditional pathway for banks to serve PVARA-licensed businesses—provided they conduct due diligence and segregate client funds. Banks remain barred from investing, trading or holding virtual assets with their own funds or customer deposits.
Aurangzeb cautioned that innovation must come with safeguards. “We all need to acknowledge that we are under attack 24/7 by state and non-state actors, and therefore there is no room for complacency,” he said, urging robust cybersecurity and regulatory oversight.
