Pakistan exploring tokenisation of its existing Eurobond debt: Aurangzeb
Finance Minister Muhammad Aurangzeb said Pakistan is examining the tokenisation of its existing Eurobond debt. The government is seeking Cabinet approval before issuing a request for proposals.
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- Finance Minister Aurangzeb said the government is reviewing tokenisation of existing Eurobond debt.
- Cabinet approval is awaited before a request for proposals (RFP) is issued.
- Restrictions on banks holding or trading virtual assets remain in place.
Finance Minister Senator Muhammad Aurangzeb said on Monday that Pakistan is examining the tokenisation of its existing Eurobond debt. He made the remarks at a dialogue on digital assets and the future of banking, organised by the Pakistan Banks' Association (PBA) with LUMS. According to 24 News, he spoke virtually.
Aurangzeb said the government is in discussions on the proposal and is seeking Cabinet approval before it proceeds with a request for proposals (RFP). In his words: "We are reviewing at this point from the Ministry of Finance and Government of Pakistan, is tokenization of our existing Eurobond debt. We are in discussions at this point, and we are looking forward to the Cabinet approval on this, before we move ahead with issuing the RFP on this front."
He urged banks to develop practical proposals around digital financial technologies and to invest in the expertise needed to assess them. Aurangzeb said: "You bring the customer relationships, operational experience and risk management capabilities that this work requires. Invest in the expertise to assess these technologies and work with relevant regulators on the activities permitted within your mandates and, of course, with the support of your respective boards."
The minister said restrictions on banks investing, trading or holding virtual assets, whether with their own funds or customer deposits, remain in place. He said digital financial innovation must come with suitable safeguards, regulatory oversight and cybersecurity measures.
On security, Aurangzeb said: "We all need to acknowledge that we are under attack 24/7 by state and non-state actors, and therefore there is no room for complacency."
He said Pakistan has set up a statutory framework through the Virtual Assets Act 2026. The next step, he said, is effective implementation through capable supervision and stronger coordination among institutions.
Aurangzeb said Pakistan needs financial innovation that can lower the cost of doing business and bring more people into the formal economy. He said the country is moving from macroeconomic stability towards sustainable growth, which requires continued fiscal discipline, stronger exports and more private investment.
Why it matters
Any change in how Pakistan's sovereign debt is held could affect banks, investors and the government's borrowing costs. Banks are also told that current limits on holding virtual assets stay in force.
