KARACHI: Finance Minister Muhammad Aurangzeb has urged authorities, including the State Bank of Pakistan (SBP), to adopt an open-minded approach towards cryptocurrency, considering the rapid advancements in digital banking and financial technology in Pakistan.

Speaking at the Pakistan Banking Summit 2025 in Karachi, Aurangzeb acknowledged that cryptocurrency is already being traded in Pakistan's informal market. He emphasized the need for regulatory authorities to stay ahead of the curve by developing a structured regulatory framework for digital assets and artificial intelligence-driven financial solutions. "The reality is that crypto is already in use here in the informal market.

Even if the actual numbers are a fraction of what is being estimated, we need to be proactive in establishing a regulatory regime that aligns with global trends and technological advancements," he stated. Referring to discussions at the AlUla Conference held recently in Saudi Arabia, Aurangzeb noted that many emerging markets are actively integrating artificial intelligence and digital assets into their financial systems to enhance financial inclusion and digital banking. He emphasized that while cryptocurrency regulation remains under the SBP's jurisdiction, Pakistan must remain open to exploring its potential benefits. Elaborating on digital banking, Aurangzeb stressed that Pakistan has made significant progress in expanding financial inclusion.

"Digital banking is not an end in itself but a means to an end. It offers better, cheaper, and faster financial solutions," he remarked. He further highlighted the importance of transitioning towards a cashless society through the widespread use of point-of-sale (POS) machines and QR codes. The finance minister also spoke on the broader economic agenda, reaffirming the government's commitment to deregulation and privatization of state-owned assets.

He underscored the critical role of banks in mobilizing local investment, which he described as essential for attracting foreign direct investment (FDI) in various sectors of the economy. He urged financial institutions to facilitate investment opportunities and drive economic growth through strategic partnerships and innovative banking solutions. "Local investment is crucial for creating an attractive environment for foreign investors. Banks must step up to support economic development through efficient financial intermediation," he stated. Responding to media queries, Aurangzeb reiterated that Pakistan remains committed to structural economic reforms, particularly in taxation, revenue collection, and the energy sector.  He emphasized that these reforms are crucial for ending Pakistan's recurring economic instability and ensuring sustainable growth. "The structural reforms being implemented in the Federal Board of Revenue (FBR) and taxation measures in the agricultural sector are necessary steps toward a more resilient and stable economy," he added.

As Pakistan continues its digital transformation journey, the finance minister's remarks highlight the need for a balanced approach to emerging financial technologies, ensuring innovation while maintaining regulatory oversight.