Pakistan to tokenize $2 billion in domestic debt: Finance Adviser

ISLAMABAD: Pakistan's Ministry of Finance announced plans on Sunday to tokenize up to $2 billion of domestic government debt in an initial phase, aimed at broadening the investor base by tapping into the country's retail segment, Associated Press of Pakistan (APP) reported.

Khurram Schehzad, Adviser to the Federal Finance Minister, outlined the initiative during a fireside chat titled "Tokenizing the Sovereign Assets-Liquidity Ready" at the 27th ITCN Asia exhibition held at Expo Center in Lahore.

The tokenization of government debt involves converting traditional bonds into digital tokens recorded on a blockchain, enabling electronic trading, improved transparency, and reduced transaction costs. 

The adviser emphasized that the government's evolving role in the digital economy centers on facilitating innovation and creating an enabling environment for emerging technologies. 

"The primary responsibility of the government is to facilitate innovation," he stated, highlighting policies designed to empower youth through opportunities in modern financial and digital sectors.

The move follows a landmark Memorandum of Understanding (MoU) signed on Dec. 12, 2025, between Finance Minister Muhammad Aurangzeb and global crypto exchange Binance to explore the technical framework for tokenizing up to $2 billion in sovereign bonds and commodity reserves.

Schehzad provided context on the global digital asset landscape, noting that Bitcoin maintains a capped supply of approximately 21 million units, making digital currencies a significant topic in contemporary financial discussions. 

On regulatory development, Schehzad said proposals for a dedicated framework or regulatory authority are aimed at improving oversight and understanding of crypto assets. 

He acknowledged that Pakistan remains at a nascent stage in this field but said the government is actively studying international models, citing the United Arab Emirates (UAE) as a leading example of structured virtual asset regulation.

The session concluded with discussions on the importance of balanced policymaking, innovation-friendly regulations, and adherence to global best practices to ensure responsible exploration of opportunities in digital finance and sovereign asset tokenization.