The State Bank of Pakistan (SBP) is preparing to launch a pilot program for a central bank digital currency (CBDC), according to Governor Jameel Ahmad. Speaking at the Reuters NEXT Asia summit in Singapore, he confirmed that the bank is also finalizing legislation to regulate virtual assets in the country.
Ahmad stated that the SBP is actively working with technology partners and “building capacity” for the digital currency pilot. The move follows a global trend, with central banks in China, India, Nigeria, and Gulf states already testing similar initiatives. Pakistan’s efforts aim to modernize its financial system while ensuring regulatory clarity for digital finance.
The upcoming law will provide the framework for licensing and regulating digital asset service providers. It builds on progress by the Pakistan Crypto Council (PCC), which was formed earlier this year to promote virtual asset adoption. PCC is exploring Bitcoin mining using surplus energy and has named Binance founder Changpeng Zhao as a strategic adviser. Plans are also underway for a state-run Bitcoin reserve.
On the monetary policy front, Ahmad said the SBP would maintain a tight policy stance to keep inflation within its medium-term 5–7% target. He noted that benchmark rates have been reduced from 22% to 11% as inflation fell to a nine-year low of 4.5% in FY25.
Ahmad also stated that Pakistan’s $7 billion IMF programme is on track, with reforms already underway in fiscal policy, energy pricing, and the foreign exchange market. He added that foreign reserves now stand at $14.5 billion, up from under $3 billion two years ago, reflecting improved macroeconomic stability.