Pakistan mulls over sovereign asset tokenization and the role blockchain infrastructure

The government of Pakistan has begun exploring the use of blockchain technology for sovereign debt instruments and digital investment products, in what officials described as a step towards modernising the country’s financial system.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb today held a meeting with Bilal Bin Saqib, Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), and the Advisor on Debt Management to the Finance Minister, Omer Khan, to discuss the tokenization of sovereign debt instruments, and Naya Pakistan Certificates.

The meeting marked one of the first high-level governmental discussions in Pakistan focused specifically on sovereign asset tokenization and the role blockchain infrastructure can play in modernising capital markets, expanding investor access, and enabling Pakistan to participate in the financial infrastructure of the new economy.

A central element of the discussion focused on the international precedent for sovereign and quasi-sovereign debt tokenization, and how Pakistan can adopt a structure aligned with established global market infrastructure.

The model under consideration, often referred to as a Digitally Native Note issued through a regulated financial market infrastructure, allows a sovereign bond to be created on a regulated blockchain platform at the moment of issuance, with same-day settlement, before integrating with the conventional international clearing and settlement systems that already serve Pakistan’s existing Eurobond programme.

The bond’s coupon payments, secondary trading, and final repayment continue through the established global infrastructure, ensuring full interoperability with the institutional investor base that participates in Pakistan’s conventional sovereign issuances.

The talks also covered the possible tokenisation of Naya Pakistan Certificates, an investment scheme aimed at overseas Pakistanis. Officials said the move could improve accessibility and broaden retail participation through digital investment channels.

Participants noted that the Roshan Digital Account programme has attracted nearly $13bn in inflows since its launch in 2020, with much of the investment directed into Pakistan’s economy.

Finance Minister Senator Muhammad Aurangzeb said that Pakistan remains committed to exploring forward-looking financial technologies that can support economic modernization, deepen investor participation, and strengthen financial accessibility.

On this occasion, Bilal Bin Saqib, Chairman PVARA, stated that digital financial infrastructure represented “the financial architecture of the future” and argued that Pakistan had an opportunity to move beyond legacy systems and integrate with emerging global capital networks.

It was agreed that PVARA, Ministry of Finance and Sate Bank of Pakistan will continue to coordinate on the design, governance and phased development of the agenda. Further announcements will follow as the work progresses through the appropriate approvals.

Both sides agreed to continue technical discussions and institutional coordination on potential frameworks, international benchmarking, regulatory considerations, and pilot structures related to sovereign asset tokenization initiatives.

The engagement reflects Pakistan’s broader push toward modernising financial infrastructure, strengthening digital asset regulation, and positioning the country as an emerging hub for responsible blockchain innovation.