In a major step toward embracing financial innovation, the State Bank of Pakistan (SBP) has confirmed that the federal government has finalized a new legal framework to regulate cryptocurrencies and virtual assets across the country.

SBP Governor Jameel Ahmad announced that the new legislation will establish a Virtual Assets Regulatory Authority, which will be tasked with overseeing the use, trading, and security of digital assets in Pakistan. This move aligns Pakistan with the growing global trend of formalizing crypto-related activities within a regulated structure.

Speaking at an event in Karachi, Ahmad also revealed that the central bank is actively developing its own central bank digital currency (CBDC). He stated that a pilot launch of the digital currency is on the horizon. “We are working on the digital currency, and a pilot project will begin soon,” he said.

In parallel with these digital initiatives, the SBP has completed the designs for new currency notes. Ahmad confirmed that these designs will soon be submitted to the federal cabinet for final approval.

Policy Rate Held Steady Amid Inflation Watch

On the economic front, the SBP has decided to maintain its policy interest rate at 11%, signaling a cautious monetary stance despite growing calls from the business sector for a rate cut.

During a press briefing, Governor Ahmad explained that although inflation had been running slightly below the central bank’s target range of 5% to 7%, emerging pressures—particularly from expected increases in energy prices—pose potential risks.

“The Monetary Policy Committee carefully assessed the external economic situation and the impact of possible energy price hikes. Based on this review, it was decided to keep the policy rate unchanged,” he stated.

The decision reflects a delicate balancing act: supporting economic stability while managing inflation expectations and external vulnerabilities.

With regulatory clarity on virtual assets, progress on a digital currency, and a steady monetary policy, Pakistan appears to be preparing for a more modern, tech-driven financial future.