Pakistan Holds Up to $30 Billion in Crypto Assets With Zero Regulation

Pakistanis may have invested between $20 billion and $30 billion in crypto-linked assets, experts disclosed at the Sustainable Development Policy Institute’s annual conference. They urged the government to move quickly toward developing a regulatory framework, warning that further delay could shut Pakistan out of a major economic opportunity. Speakers noted that the true scale of crypto activity is unknown, as the country has no legal structure to recognize or monitor transactions in virtual assets. They also projected that trading volumes by Pakistanis could eventually reach as high as $300 billion, a level approaching Pakistan’s roughly $400 billion GDP. Experts at the conference urged a phased and cautious approach to legalization, emphasizing that weak regulation and cybersecurity vulnerabilities could expose consumers to fraud and financial instability. They recommended beginning with a Central Bank Digital Currency to lower remittance costs and bring digital transactions under state oversight. Pakistan Banks Association President Zafar Masud said the country could capture $20–25 billion in economic gains if it moves early, adding that Pakistan is “seriously considering a rupee stablecoin” as part of the transition. However, he cautioned that cybersecurity and negative public perception remain major hurdles. State Bank officials confirmed that work on a digital currency prototype has been underway since 2022, with support from the World Bank and IMF, with a pilot phase planned after testing. Experts agreed that digital financial systems could reduce remittance costs, expand inclusion, and align Pakistan with global fintech trends, but warned that delaying regulation could leave the country locked out of the next wave of digital finance.