Finmin calls for open-minded approach towards cryptocurrency

Finance Minister Muhammad Aurangzeb has urged authorities, including the State Bank of Pakistan (SBP) to approach the potential introduction of cryptocurrency with an “open mind” amid significant developments in digital banking in Pakistan.

“The reality is that crypto is already in vogue here in the informal market and the numbers are what they are, even if they are one-fourth of what the numbers are being moved around, we need to think through and be ahead of the cycle in terms of the regulatory regime and think on how to move forward with AI and digital assets (in Pakistan),” Aurangzeb, who is also a former senior banker, said while addressing at the ‘Pakistan Banking Summit 2025’ in Karachi on Monday.

Referring to discussions at the AlUla Conference held recently in Saudi Arabia, the minister highlighted that most of the emerging markets are on their transformation journey.

Most of them are now talking “about AI and digital assets” to advance financial inclusions and digital banking in their respective countries. “I know we have our views at this point in time regulatory regime (on the crypto) remains the subject of the central bank (SBP),” he said.

Further elaborating his thoughts on cryptocurrency, the minister while responding to a media query emphasized: “I have talked in the context of emerging markets where people are looking at AI and digital assets more broadly and how we are looking at it here. From my perspective, we have to approach it (cryptocurrency) with an open mind.”

Pakistan has come a long way in digital banking and financial inclusions, the minister remarked. “From my perspective, digital is not the end, but a means to the end. It is better, cheaper and faster,” he maintained.

Aurangzeb highlighted that banks are engaged in broader discussions on the “war on cash” and emphasized that Pakistan is committed to advancing toward a cashless society. “This will be achieved by furthering the country’s digital banking journey and ensuring the widespread deployment of point-of-sale (POS) machines and QR codes.”

In his policy statement, Finance Minister Aurangzeb said the government remains committed towards deregulation and privatization of assets.

He said banks have to play a role in mobilizing investment through local investors into the domestic economy. “This is a must to attract foreign direct investment (FDI) into different sectors of the economy,” he said.

While responding to another query at the media talk, the finance minister said Pakistan will not step back from the ongoing structural reforms in the economy to end the “boom and bust cycle” and move forward to attain sustainable growth.

“The structural reforms are primarily being done in Federal Board of Revenue (FBR) and energy and taxation measures in the agriculture sector,” he said.

Separately, Finance Minister Muhammad Aurangzeb on Monday reaffirmed the government’s commitment to economic reforms, highlighting the urgency of restructuring state-owned enterprises (SOEs) to curb mounting losses.

Following his address at the “Pakistan Banking Summit 2025” held in Karachi, the finance minister spoke to the media. He said the government faces Rs1 trillion in losses from SOEs, which necessitates privatization and SOE reforms.

“At this point, reforming the SOEs and moving forward with the privatization is the right thing to do for the country,” he said.

The finance minister reiterated that the government intends to move towards sustainable and inclusive growth. “We cannot continue with the external account vulnerability.”

He said the government intends to achieve export-led growth, beyond textiles, IT, and agriculture.

“Going forward minerals will be a game changer from 2028. Between now and 2028, every single sector has to start exporting from Pakistan.”

To a query, the minister reiterated that the government intends to broaden and deepen the tax base.

“There are sectors which contribute 19-20% to the GDP, but their contribution towards the exchequer is just 1%, which is not sustainable,” he said.

The finance minister said the government plans to ensure compliance and plug tax leakages to provide relief to the overburdened sectors.

On talks with the International Monetary Fund (IMF), Aurangzeb shared that an IMF mission has arrived in Pakistan to discuss the Climate Resiliency Fund.

“This is a technical mission, which will stay here for 3-4 days, after which further deliberations will take place.

“Meanwhile, in the first week of March, another IMF delegation is expected to arrive in Pakistan for formal discussions on the six-monthly review of the Extended Fund Facility programme.”

Discussions will involve the Ministry of Finance, SBP, and other ministries, he said.

“Based on which they would compile their review on our performance during the first six months of the EFF.”