Financial experts have called on Pakistan to move quickly to regulate digital assets and cryptocurrencies, warning that delays could cost the country an estimated $20 to $25 billion in potential economic gains.

Speaking at a policy dialogue titled “Digital Currencies in Pakistan: Making Sense of Policy Positions, Consequences and Future Trajectory”, held during the 28th Sustainable Development Conference organized by the Sustainable Development Policy Institute (SDPI), industry leaders and policymakers stressed the urgent need for a clear regulatory framework for virtual currencies and blockchain-based assets.

Zafar Masud, Chief Executive Officer of the Bank of Punjab, said Pakistan stands at a “digital crossroads” and must strike a balance between innovation and regulation. “There are many misconceptions about digital currencies, but we cannot ignore their future,” he said. Masud warned that without proper oversight, the country risks capital flight and losing its share in the rapidly growing digital economy.

Dr. Sajid Amin, Research Fellow at SDPI, noted that while the State Bank of Pakistan (SBP) currently bans cryptocurrency trading, it is also working on introducing a Central Bank Digital Currency (CBDC) to modernize payments and promote financial inclusion.

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Imran Ashraf, Head of Digital Banking at the Bank of Punjab, highlighted that over 70 countries are already piloting digital currency projects, including China, whose digital yuan (e-CNY) has reached a value of 14 trillion yuan. He said Pakistan should not fall behind in adopting similar technologies for trade and payments.

Faisal Mazhar, Deputy Director of Payments at the SBP, confirmed that the bank has been developing a digital currency since 2022 with technical assistance from the World Bank and IMF. “Our payment systems are fast evolving, and we are building capacity to manage digital currencies responsibly,” he said.

Ali Farid Khawaja, Chairman of K-Trade, and Ayad Butt, CEO of Zodia Markets, both underlined the importance of setting up strong regulations to prevent money laundering and capital control issues. Butt added that clear licensing rules and oversight could help attract crypto investment into Pakistan.

Experts agreed that a balanced regulatory approach, combining innovation with strict compliance, could help Pakistan tap into global financial trends, attract investment, and boost transparency in the digital economy.