Pakistan to empower private sector for economic growth

Pakistan’s Finance Minister Muhammad Aurangzeb has reaffirmed the government’s commitment to providing an enabling environment for the private sector to lead economic growth.

addressing the ‘Leadership Summit on Blockchain and Digital Assets: Technology and Innovation’ held in Islamabad on Saturday, the Federal Minister for Finance and Revenue has stressed that with millions of Pakistanis, especially youth, already engaged in Blockchain and digital assets, the country must embrace this shift as part of its new economy by fostering financial inclusion, transparency, and efficiency, while ensuring a balanced regulatory framework through collaboration between government, academia, and the private sector.

The event, organized in collaboration with LUMS, brought together stakeholders from academia, industry, and government to deliberate on the future of blockchain, digital assets, and emerging technologies in Pakistan.

In his keynote address, the Finance Minister underscored the importance of embracing technological innovation to align with the global transition towards the digital economy. He highlighted that while Pakistan is making strides in achieving macroeconomic stability, the next imperative is to actively participate in shaping the new economy driven by blockchain, artificial intelligence, and Web 3.0 technologies.

The Minister noted that an estimated 20 to 25 million Pakistanis, primarily youth, are already engaged in blockchain and digital asset-related activities. “This scale of participation cannot be ignored,” he remarked, stressing the need for acknowledgment, education, and structured policy responses to harness this growing trend.

He emphasised three key drivers for blockchain adoption in Pakistan: financial inclusion, transparency, and speed. By enabling faster, cheaper, and more efficient transactions, blockchain and allied technologies can provide critical solutions for banking, remittances, agriculture, IT, freelancing, and energy. He cited successful initiatives such as the development of e-KYC systems through blockchain, which reduce duplication of compliance processes in banking, as practical examples of progress.

The Finance Minister also outlined the regulatory dimension of this transformation. He cautioned that given the scale of activity, ignoring digital assets could expose Pakistan to risks related to KYC, AML, sanctions, and monitoring, potentially reversing hard-earned progress on the FATF front. In this context, he highlighted the establishment of the Pakistan Virtual Asset Regulatory Authority (PVARA), whose inaugural meeting is scheduled for next week, as a milestone towards a balanced regulatory framework.

Senator Aurangzeb stressed that Pakistan must leverage international experience, drawing on models from Dubai, Singapore, and the EU, while ensuring that national interests remain paramount. He commended the support received from international experts and organizations in helping Pakistan fast-track its regulatory and policy frameworks.

Reflecting on the broader vision, the Minister reiterated the government’s commitment to fostering an enabling environment while allowing the private sector to lead innovation, with academia providing knowledge and talent. “This trilateral partnership of government, academia, and private sector is essential to scaling up our journey into the new economy,” he stated.

He concluded by underlining the role of Pakistan’s youth as the driving force of this transition. “We must harness their energy, channel it through education and regulation, and integrate it into a system that strengthens the economy while safeguarding national interests. This is not just about keeping pace with global change-it is about ensuring Pakistan’s rightful place in the new economy.” The Minister congratulated LUMS and the organizers of the summit for their leadership and reaffirmed the government’s commitment to supporting all initiatives that accelerate Pakistan’s journey into the digital and blockchain-driven future.

A day earlier, The Asia Development Bank approved a $410 million package for developing Pakistan’s Reko Diq copper and gold mine on Friday.

The potentially hugely lucrative open-pit project in Pakistan’s Balochistan province seeks to develop one of the world’s largest untapped copper and gold deposits, with production expected to start in 2028.

The ADB package includes $300 million in loans to Canadian firm Barrick and a $110 million credit guarantee for the local government.

When completed, Reko Diq is projected to be the world’s fifth-largest copper mine, a metal critical for wiring, motors and renewable energy technology.

“Reko Diq will help the critical minerals supply chain, while advancing the clean energy transition and driving digital innovation,” ADB President Masato Kanda said in a statement.

Agencies