Pakistan’s Finance Minister Muhammad Aurangzeb announced that the government is exploring the introduction of digital currency.
During a special session at the World Economic Forum in Riyadh, Finance Minister Muhammad Aurangzeb articulated Pakistan’s inclination towards adopting digital currency. He highlighted the substantial yet under-documented nature of the nation’s economy, stating, “We generate Rs9.4 trillion in annual revenues, yet half of our economy remains undocumented.”
Furthermore, Minister Aurangzeb announced the finalization of a strategic partnership with the consultancy firm McKinsey aimed at advancing the full digitalization of Pakistan’s economy. He expressed confidence in the collaboration, affirming, “They will assist in achieving complete digitalization of our economy.”
Aurangzeb also highlighted the need to establish a green tax framework. He mentioned that international bodies like the World Bank are investigating new financing methods.
The minister emphasized combining domestic actions with international funds to fulfil Pakistan’s financial needs, underscoring Pakistan’s commitment to harnessing digital innovations to enhance economic transparency and efficiency.
In July 2023, State Bank of Pakistan Governor Jameel Ahmad disclosed ongoing efforts to introduce Pakistan’s first digital currency, the Central Bank Digital Currency (CBDC).
Ahmad shared this during a briefing to the Senate’s Standing Committee on Finance and Revenue, chaired by Senator Saleem Mandviwalla at Parliament House.
The committee learned that various central banks are experimenting with digital currencies, and the SBP aims to benefit from their insights.
