Pakistan Considers Introducing Digital Currency, Finance Minister Reveals at World Economic Forum
During a session at the World Economic Forum (WEF), Finance Minister Muhammad Aurangzeb disclosed Pakistan’s contemplation of implementing digital currency within its borders. Aurangzeb highlighted the nation’s tentative steps toward potentially adopting digital currency, underscoring its significance on the global economic stage.
Furthermore, Aurangzeb emphasized the government’s commitment to supporting impoverished women nationwide. He addressed a prevalent issue wherein women often fall victim to cash theft by family members, advocating for digital wallet solutions to mitigate such risks.
The proposal for incorporating digital currency was initially introduced by State Bank of Pakistan (SBP) Governor Jameel Ahmad during a Senate panel meeting in July 2023. Ahmad announced SBP’s ongoing efforts to launch its own Central Bank Digital Currency (CBDC), acknowledging the evolving global landscape of monetary transactions.
The SBP‘s previous reluctance to embrace digital currencies was noted, despite global advancements in this arena. In a Financial Stability Review last year, SBP expressed concerns regarding the potential impact of digital assets on monetary policy effectiveness. The review highlighted the challenges digital currencies pose to traditional monetary control mechanisms, particularly in managing foreign exchange-related controls amidst Pakistan’s foreign exchange challenges.
As the SBP continues to evaluate the feasibility and implications of digital currency adoption, Pakistan navigates towards potentially joining the global digital financial ecosystem, marking a significant shift in its monetary policy approach.
