Pakistan moves toward blockchain-based sovereign debt

May 18, 2026 (MLN): Pakistan has initiated high-level discussions on the tokenization of sovereign debt instruments and Naya Pakistan Certificates, in a move aimed at exploring how blockchain infrastructure could support the modernisation of capital markets and expand investor access.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA) Bilal Bin Saqib and Advisor on Debt Management Omer Khan.

The meeting deliberated on potential structures, implementation pathways, regulatory considerations, and next steps for tokenized sovereign instruments within Pakistan’s evolving financial ecosystem.

The discussions focused on sovereign asset tokenization and the role of blockchain infrastructure in modernising capital markets, improving investor access, and enabling Pakistan to participate in the financial infrastructure of the new economy.

International precedent for sovereign and quasi-sovereign debt tokenization was also reviewed, along with how Pakistan could adopt a structure aligned with established global market infrastructure.

The model under consideration, referred to as a Digitally Native Note issued through a regulated financial market infrastructure, enables a sovereign bond to be created on a regulated blockchain platform at issuance with same-day settlement, before integrating with existing international clearing and settlement systems supporting Pakistan’s Eurobond programme.

Coupon payments, secondary trading, and final repayment would continue through established global infrastructure to ensure interoperability with institutional investors.

Tokenization of Naya Pakistan Certificates was also discussed, with potential to enable broader retail participation, improve accessibility for overseas Pakistanis, and create more seamless digital investment rails connected to global markets.

It was highlighted that the Roshan Digital Account has attracted close to $13bn in cumulative inflows from overseas Pakistanis and international investors since 2020, with most of this capital deployed within Pakistan’s economy.

The proposed digital distribution framework aims to extend this channel to a broader base of eligible global investors under full regulatory supervision.

The discussions further explored how blockchain-powered financial infrastructure could connect domestic financial products and sovereign instruments with a wider international investor base through programmable and digitally native markets.

The Finance Minister stated that Pakistan remains committed to exploring forward-looking financial technologies to support economic modernization, deepen investor participation, and strengthen financial accessibility, noting that tokenized sovereign instruments represent an exploratory step toward the future evolution of capital markets.

Chairman PVARA stated that the discussions are focused on reimagining how Pakistan raises capital, expands investor participation, and integrates its financial markets with the emerging digital economy, while enhancing accessibility for overseas Pakistanis and global retail investors.

It was agreed that the Ministry of Finance, PVARA, and the State Bank of Pakistan will continue coordination on design, governance, and phased development of the initiative, with further announcements to follow as work progresses through the relevant approvals.

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