Pakistan and World Bank Collaborate on Digital Assets and Bonds

Pakistan is actively engaging with the World Bank Group to explore avenues for collaboration on digital bonds, tokenisation, and AI-driven financial operations. This initiative is part of the country's efforts to refine its regulatory framework governing virtual assets.

Strategic Meeting at IMF-World Bank Annual Meetings

Recently, Minister of State Bilal bin Saqib, who also chairs the Pakistan Virtual Assets Regulatory Authority (PVARA), met with Jorge Familiar, the World Bank Group's Vice President and Treasurer. Their discussions took place during the IMF-World Bank Annual Meetings held in Bangkok.

The talks primarily revolved around sharing insights, enhancing institutional capacity, and leveraging financial technologies to bolster Pakistan's capital markets.

Key Areas of Discussion

During the meeting, several critical topics were addressed:

• Improving settlement efficiency in capital markets.
• Expanding access to capital for various sectors.
• Ensuring adequate investor protection and maintaining financial stability.

Progress in Regulatory Framework

Bilal bin Saqib recently highlighted that Pakistan has significantly shifted from a comprehensive ban on virtual assets to establishing a functional regulatory framework in just 15 months. He took to social media platform X to reflect on this journey, underscoring the impact of the Virtual Assets Act 2026.

Additionally, the Minister noted the removal of banking restrictions imposed by the State Bank of Pakistan back in 2018, as well as the prompt introduction of licensing rules that came into effect within 170 days of the law's adoption.

Growing Interest and Regulatory Sandbox

Notably, PVARA has received 75 applications from both domestic and international entities eager to engage in Pakistan's burgeoning virtual asset market. This surge in interest highlights the potential of the sector.

The authority has also introduced a regulatory sandbox for testing virtual asset-related financial products across diverse areas, including gold, real estate, and remittances.

Looking Ahead

According to Bilal, the next major focus will be on streamlining the licensing process, which is expected to yield significant economic benefits as early as 2027. The collaboration with the World Bank signifies Pakistan's ambition to introduce regulated digital financial products while also keenly exploring new technologies to enrich its capital market landscape.