Pakistan explores digital assets, tokenisation to expand access to finance

Pakistan is examining the potential use of digital assets and tokenisation in areas including real estate and other investment instruments as part of broader efforts

ISLAMABAD: Pakistan is examining the potential use of digital assets and tokenisation in areas including real estate and other investment instruments as part of broader efforts to accelerate digital transformation and expand access to financial services.

The matter came under discussion during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and Pakistan Digital Authority (PDA) Chairperson Dr Sohail Munir on Thursday. The meeting focused on digital finance, technology-driven economic activity and measures aimed at making financial services more accessible and efficient.

According to the Finance Division, the participants reviewed the emerging role of digital assets and tokenisation, particularly their possible application in real estate and other investment-related assets. The discussion also stressed the need for an appropriate regulatory and institutional framework to ensure that such technologies are adopted in a responsible and sustainable manner.

Tokenisation generally involves representing ownership or economic rights in an asset through digital tokens. The approach has attracted growing international attention because it can potentially make certain investment opportunities easier to access, improve transaction efficiency and broaden participation in financial markets.

The finance minister stressed that Pakistan’s regulatory and institutional arrangements must keep pace with rapid developments in digital technology and new business models. He emphasised that emerging technologies should be supported by clear rules and mechanisms that provide certainty to businesses, investors and financial institutions.

The meeting also examined the need to create an enabling environment for electronic transactions and encourage the wider adoption of digital processes across trade and financial activities.

Aurangzeb highlighted the importance of using technology to reduce procedural barriers and improve access to finance. In this regard, the participants discussed simplifying customer onboarding procedures, strengthening mechanisms for sharing financial data and improving interoperability among different financial systems.

Greater connectivity between banks and capital markets was also identified as an important area for development. The participants considered how digital platforms and simplified account-opening procedures could encourage more people to participate in the capital market and gain access to a broader range of investment opportunities.

The finance minister also called for stronger integration of banking and capital-market systems, noting that better-connected digital infrastructure could help improve financial inclusion while making investment processes more convenient and efficient.

Another key area discussed during the meeting was the use and interoperability of data across government institutions. Aurangzeb noted that better integration of government data could improve the quality and speed of policymaking, planning and decision-making.

The meeting also considered the growing role of Artificial Intelligence (AI) and other digital technologies in strengthening government systems and improving the delivery of public and financial services.

The participants reviewed opportunities to enhance Pakistan’s digital infrastructure so that government departments, financial institutions and businesses can operate through more efficient and interconnected systems.

Aurangzeb appreciated the initiatives being undertaken by the Pakistan Digital Authority and stressed the need to prioritise practical projects capable of delivering measurable improvements in efficiency, financial access and digital capacity.

He further emphasised continued coordination among government institutions, regulators, financial-sector stakeholders and technology organisations to ensure that digital initiatives translate into tangible economic benefits.

The discussions form part of wider efforts to strengthen Pakistan’s digital economy by modernising financial processes, expanding technology-based services and creating an environment in which emerging financial technologies can develop within an appropriate regulatory framework.

With digital assets, tokenisation, artificial intelligence and data-driven financial services developing rapidly worldwide, Pakistan’s efforts to establish suitable frameworks could play an important role in determining how effectively the country participates in the next phase of digital financial development.