Pakistan Central Bank To Roll Out Digital Currency Pilot

Pakistan’s central bank is preparing to launch a pilot program for a central bank digital currency (CBDC), Governor Jameel Ahmad confirmed on Wednesday. The move is part of the country’s ongoing efforts to modernize its financial system and explore blockchain-backed solutions. This announcement was made at the Reuters NEXT Asia summit in Singapore, where Ahmad discussed the future of monetary policy in South Asia.

Pakistan Moves Towards Digital Currency Pilot

Governor Ahmad outlined that Pakistan’s State Bank is actively working on building the infrastructure necessary for the digital currency project. The pilot program is supposed to get started soon, and the central bank is getting closer to approving the legislation, which will govern the virtual assets in the country.

Ahmad stressed that the legal framework is aimed to licensing and regulating the virtual asset sector, which will be an opening to more comprehensive digital financial services.

He further explained that this initiative is part of Pakistan’s broader strategy to stay aligned with global trends, as countries such as China, India, and Nigeria have already taken steps toward implementing blockchain-based currencies. “We are building up our capacity on the central bank digital currency,” Ahmad noted during the panel discussion, adding that the rollout of the pilot would come soon.

Regulatory Measures and Virtual Asset Oversight

Alongside the digital currency pilot, Pakistan has taken steps to create a regulatory framework for virtual assets. In March, the Pakistan Crypto Council (PCC) was set up with the aim of driving virtual asset adoption. The council is also looking into tapping surplus energy for bitcoin mining. Additionally, Binance founder Changpeng Zhao has been appointed as a strategic advisor to help navigate the emerging crypto landscape.

In addition, Pakistani government passed another bill, the Virtual Assets Act, 2025, which plans to create an independent regulator that will license and monitor the crypto industry. The move is likely to facilitate a more secure and transparent business environment.

“This new field is associated with risks and opportunities. We must analyze and handle the risks and ensure that we maximize the opportunities,” Governor Ahmad said. The legislation is still in its final stages, and banks will need to adhere to the upcoming licensing protocols before formally engaging with virtual assets.

Central Bank’s Policy on Inflation and Economic Stability

As Pakistan works toward digital currency implementation, the central bank is also managing the country’s monetary policy. Governor Ahmad stated that the State Bank of Pakistan will maintain a tight monetary stance despite recent rate cuts. The central bank aims to stabilize inflation within a target range of 5–7% in the medium term.

Over the past year, Pakistan’s central bank reduced its benchmark interest rate from 22% to 11%. The inflation, as great as 38% in May of 2023, fell to 3.2% in June of 2025.

During the fiscal year 2025, the average inflation recorded in the country was 4.5%, the lowest experienced within nine years. Ahmad observed that these outcomes have resonated with the government policies that have had healthy effects on inflation and external financial position of Pakistan. Moreover, the ongoing $7 billion IMF program, which runs through September 2027, has helped Pakistan implement necessary reforms in areas like fiscal policy, energy pricing, and exchange rate liberalization.