Pakistan moves towards regulated virtual assets, says Aurangzeb

Pakistan is transitioning towards a regulated virtual-assets framework, Finance Minister Muhammad Aurangzeb said on Monday, as the government seeks to harness blockchain and tokenisation for cheaper remittances, SME financing, sovereign debt and broader financial inclusion. Aurangzeb participated in a series of high-level engagements in New York, USA, on the first day of his visit, during the UNGA High-Level Week of the 81st Session of the United Nations General Assembly (UNGA), read a statement on Tuesday. The finance minister’s engagements also focused on the role of digital innovation in expanding economic opportunities and strengthening financial inclusion. In his opening remarks at the “United Nations Digital Cooperation Day 2026 – Blockchain and the Tokenised Future: Sovereign Choices and Safeguards for Next-Gen DPI, ” Senator Muhammad Aurangzeb highlighted Pakistan’s transition towards a regulated virtual-assets framework. He emphasised that tokenisation must address real economic needs, including cheaper remittances, SME financing, sovereign debt and broader financial access. He stressed that private-sector innovation should be supported by strong state safeguards, inclusive digital infrastructure and international cooperation, with emerging economies fully involved in shaping global standards. Across these engagements, the finance minister highlighted Pakistan’s climate vulnerability, disaster-response priorities, the opportunities presented by digital transformation and tokenisation, and the importance of translating climate commitments into practical and investable actions. At the World Economic Forum’s “Financing Planet and Prosperity” meeting, the finance minister highlighted Pakistan’s acute vulnerability to climate-related disasters, particularly floods affecting infrastructure and communities. He outlined the government’s efforts to strengthen disaster-response frameworks, early-warning systems and costed climate-investment plans, while emphasising that external assistance must be complemented by domestic resources and fiscal buffers. Aurangzeb referred to the mobilisation of financing through the World Bank, Asian Development Bank and international capital markets for relief, adaptation and reconstruction. At the same time, he cautioned against complacency and called on international climate funds, including the Green Climate Fund and the Loss and Damage Fund, to simplify their procedures and accelerate access to financing. Building on the broader focus on climate action and development financing, Senator Muhammad Aurangzeb also participated in the launch of the COP31 Action Agenda, where he expressed Pakistan’s full support for the agenda, noting its strong alignment with the country’s national climate priorities and NDC 3. 0. He highlighted Pakistan’s acute climate vulnerability and emphasised shared priorities, including clean energy and electrification, renewable-energy expansion, energy-efficient buildings, climate-resilient cities, climate education and public awareness, food security and climate-resilient agriculture. Welcoming the proposed Climate Implementation Bridge, the finance minister described it as a mechanism for translating NDC commitments into investable and bankable projects. He stressed that the principal challenge was no longer the formulation of plans but their effective implementation, and commended the agenda’s clearly defined action points and key performance indicators, describing it as practical, impact-oriented and focused on measurable results.

Read full story on Business Recorder