Pakistan mulls introducing digital currency

RIYADH: Pakistan’s Finance Minister Muhammad Aurangzeb said that the government is considering the possibility of introducing digital currency within its borders.

Speaking at the World Economic Forum (WEF) special meeting in Riyadh, Finance Minister Aurangzeb expressed Pakistan’s contemplation towards digital currency adoption.

“We generate Rs9.4 trillion in annual revenues, yet half of our economy remains undocumented,” he stated.

Aurangzeb further said that an agreement was signed with McKinsey on Friday to facilitate comprehensive digitalisation of the economy.

“They are going to come in and help us with the end-to-end digitalisation of our economy,” the finance minister said.

FinMin Aurangzeb emphasized the urgent need to implement a framework for a green tax economy.

Even international institutions like the World Bank (WB) are exploring innovative financing structures, he added.

The minister stressed the combination of domestic efforts and international financing to meet the country’s financial requirements.

Back in July 2023, State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that the central bank was working on a plan to launch Pakistan’s first digital currency, known as the Central Bank Digital Currency (CBDC).

He made these remarks while briefing Senate’s Standing Committee on Finance and Revenue. The meeting was held under the chairmanship of Senator Saleem Mandviwalla at Parliament House,

The committee was told that many central banks are working to launch digital currency on a pilot basis, and the SBP is trying to learn from their experience.