ISLAMABAD: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a high-level meeting on digital assets, emphasizing the need for a robust regulatory framework to integrate cryptocurrency and blockchain technology into Pakistan's financial system.

The meeting was attended by key government officials, including the Minister of State for IT & Telecom, Ms. Shaza Fatima Khawaja, the Governor of the State Bank, Secretary Finance, and Secretary IT & Telecom. Additionally, foreign delegates, including President Trump's Advisors for Digital Assets, participated in the discussions.

The deliberations revolved around the global evolution of cryptocurrency, its increasing adoption, and the regulatory frameworks being implemented internationally, particularly in line with U.S. government policies. The discussions highlighted financial security, risk mitigation, and the potential economic impact of digital assets on Pakistan. The finance minister stressed the importance of aligning Pakistan's digital asset framework with international best practices and ensuring compliance with Financial Action Task Force (FATF) guidelines. He reiterated the government's commitment to exploring digital assets and integrating blockchain technology as part of its broader strategy to modernize the financial sector. A key point of discussion was the tokenization of infrastructure and state-owned enterprise (SOE) assets, which could enhance liquidity, attract broader investor participation, and improve efficiency in capital markets.

The minister noted that multiple stakeholders, including foreign and domestic investors, have already developed product-ready digital asset solutions that could be tested in a regulatory sandbox before full-scale implementation. The meeting also addressed the challenges faced by Pakistan's digital asset market, which currently has over 20 million active users. High transaction fees and the lack of a clear regulatory framework have created barriers for users and investors.

The finance minister reaffirmed the government's commitment to facilitating the growth of this industry by implementing appropriate regulations, laws, and incentives to promote transparency and enhance digital business opportunities. To ensure a structured and secure approach, the finance minister directed relevant stakeholders to formulate a comprehensive regulatory framework that prioritizes security, transparency, and compliance while mitigating the risks of financial crimes and illicit activities. He underscored the importance of a balanced strategy-one that encourages innovation and investment in digital assets while maintaining strict oversight in line with international standards. As part of this initiative, the government is considering the establishment of a National Crypto Council-a dedicated advisory body comprising government representatives, regulatory authorities, and industry experts. The proposed council would oversee policy development, address regulatory challenges, and ensure that Pakistan's digital asset ecosystem evolves securely, compliantly, and sustainably. Additionally, the council would collaborate with friendly nations to develop standardized frameworks for international digital economic engagement. The meeting concluded with a consensus on adopting a cautious yet forward-looking approach, ensuring that future developments in the digital asset space align with Pakistan's national interests, FATF guidelines, and global financial standards.

  The government's focus remains on fostering a secure, well-regulated, and innovation-driven digital financial landscape that attracts investment and strengthens Pakistan's position in the global digital economy.