Govt mulls introducing first-ever 'digital currency' in Pakistan

Finance Minister Muhammad Aurangzeb said the Prime Minister Shehbaz Sharif-led government is mulling to introduce the first-ever digital currency in Pakistan.

His remarks came while speaking at the World Economic Forum's special meeting in Saudi Arabia's Riyadh.

“We [Pakistan] generate Rs9.4 trillion in annual revenues, but half of our economy remains undocumented,” the FinMin said.

"The government is providing cash to the poor women of Pakistan. Women say that the male family members take cash from them," he said adding that the women want to get the allowance through the digital wallet.

Aurangzeb further informed that the South Asian country had inked an agreement with McKinsey to facilitate comprehensive digitalisation of the economy.

Earlier in 2021, The State Bank of Pakistan had announced that the central bank was examining issuing digital currency as a means of boosting financial inclusion as well as reducing money laundering from the economy. 

Later in 2023, Central Bank's Digital Financial Services Group Additional Director Shoukat Bizinjo said that Pakistan was studying CBBCs (callable bull/bear contracts) in order to launch digital currency in the country.

However, no implementation of the plans was witnessed since then.