Finance Minister Muhammad Aurangzeb has emphasized the need for greater digitization in Pakistan’s banking sector, urging policymakers, particularly the State Bank of Pakistan (SBP), to consider the potential introduction of cryptocurrency with an open mind. Speaking at The First Pakistan Banking Summit 2025 in Karachi, Aurangzeb acknowledged that cryptocurrency is already in use within the informal economy and stressed the importance of developing a regulatory framework for digital assets and artificial intelligence (AI).
“In Pakistan, we are engaged in the ‘war on cash’ to promote a cashless society through digital banking solutions, point-of-sale (POS) systems, and QR codes,” he stated. As digital banking gains momentum, he urged financial regulators to stay ahead of global trends and adapt to emerging technologies.
The finance minister highlighted insights from the AlUla Conference in Saudi Arabia, where discussions centered on how emerging markets are leveraging AI and digital assets to accelerate financial inclusion and banking transformation. He acknowledged that while the SBP has taken steps to regulate cryptocurrency, a broader perspective on its future is necessary to keep Pakistan financially competitive.
Aurangzeb reaffirmed the government’s commitment to digital banking and economic reforms, underscoring that digitization is critical to achieving economic efficiency. He emphasized that appropriate reforms are being introduced to strengthen Pakistan’s financial sector, stating, “Pakistan needs to transform the DNA of its economy and move towards sustainable and inclusive growth.”
Beyond digital transformation, Aurangzeb pointed to population growth and climate change as two of Pakistan’s biggest challenges, which are affecting its economic resilience and long-term sustainability. He revealed that Pakistan is building a 10-year partnership with the World Bank, focusing on population control, climate resilience, and fiscal discipline.
Discussing the role of the banking sector, the minister stressed that financial institutions should prioritize financing for SMEs, agriculture, livestock, dairy, and other critical sectors to stimulate economic growth and documentation. He also underscored the necessity of structural reforms in key areas, including taxation, energy, and the Federal Board of Revenue (FBR), to break the cycle of economic instability and ensure sustainable progress.
Aurangzeb also shared key takeaways from the AlUla Conference, which was co-hosted by Saudi Finance Minister Mohammed Al-Jadaan and IMF Managing Director Kristalina Georgieva. The event brought together finance ministers from the GCC, Africa, Russia, Central Asia, and Latin America to discuss global economic trends. A major consensus among the leaders was that emerging economies must focus on factors within their control, such as policy continuity and structural reforms, instead of external geopolitical and economic pressures.
Among the dominant themes of the conference was the importance of productivity-led growth, with finance ministers agreeing that governments must prioritize governance, deregulation, and fiscal discipline while allowing the private sector to drive economic expansion. Aurangzeb cited Argentina’s approach, where a Ministry of Deregulation has been established to cut bureaucracy and accelerate economic efficiency.
South-South collaboration was another major topic, with wealthier emerging economies stepping up to support less developed nations. This included commitments to increase investment flows, strengthen trade partnerships, and provide technical assistance for capacity building.
Bringing the discussion back to Pakistan, Aurangzeb noted that the country has made significant strides in macroeconomic stability and remains committed to ongoing structural reforms, particularly in taxation, energy, and financial digitization. He stressed the importance of deepening economic ties with the GCC, Africa, and Central Asian republics to expand regional connectivity and trade growth.
“With global trade facing new challenges, regional partnerships will be crucial in shaping the economic future of emerging markets,” Aurangzeb remarked. He also reiterated Pakistan’s efforts to attract foreign direct investment (FDI) by ensuring a business-friendly regulatory environment and supporting local investors.
“Banks have a key role to play in mobilizing domestic investments, which will, in turn, help attract international capital into our economy,” he concluded. As Pakistan navigates the digital finance revolution, policymakers will need to strike a balance between regulation and innovation, ensuring that cryptocurrency and digital assets can contribute to the country’s economic transformation.
