Pakistan Banks Association and LUMS Convene Digital Asset Dialogue
The Pakistan Banks Association, working alongside the Centre for Digital Asset Research at LUMS, hosted the Dialogue on Digital Assets and the Future of Banking. This gathering brought together key figures from the Ministry of Finance, the Pakistan Virtual Assets Regulatory Authority, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, banking sector leaders, and international experts. The event served as a continuation of the Pakistan Banking Summit 2026, focusing on how the banking sector can advance digital finance through responsible innovation, institutional preparedness, and regulatory coordination.
Discussions during the event centered on cross-border payments, tokenisation, programmable payments, and the practical application of emerging technologies within the domestic financial ecosystem. Leaders addressed the necessity of building an environment where technology supports national economic goals while maintaining strict risk management and security standards. The presence of both government ministers and central bank officials highlighted the coordinated approach being taken toward financial modernisation in the country.
Key Government and Regulatory Figures Lead Discussions
The Dialogue featured high-level keynotes from major institutional leaders. Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, attended as Chief Guest. Other keynote speakers included Bilal Bin Saqib, Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority; Saleem Ullah, Deputy Governor of the State Bank of Pakistan; Imtiaz Haider, Commissioner of the Securities and Exchange Commission of Pakistan; and Umar Farooq, Global Co-Head of Payments at J.P. Morgan.
During his address, Senator Muhammad Aurangzeb highlighted the government's exploration of tokenising Pakistan's existing Eurobond debt, subject to necessary approvals. He emphasised the importance of collaboration between banks, regulators, and technology practitioners to develop practical digital finance solutions aligned with national economic priorities, supported by strong risk management and cybersecurity safeguards.
Building Domestic Financial Infrastructure and Capabilities
Bilal Bin Saqib, Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority, stressed that the nation should help build the new financial infrastructure now taking shape globally. He noted that when correspondent banking arrangements and major payment networks were originally designed, Pakistan was largely a user of systems created elsewhere rather than an architect of those systems.
When the world's correspondent banking arrangements and major payment networks were taking shape, Pakistan was largely a user of systems designed elsewhere, rather than an architect of those systems. Today, the rules of finance are evolving again. The question before Pakistan is simple: do we want to keep renting our future, or do we want to help build and own it?
He called on commercial banks to become launchpads for innovators, invest in artificial intelligence capabilities, and strengthen collaboration with academic institutions such as LUMS. Furthermore, he identified supervised, bank-led payment arrangements involving major Gulf remittance corridors as an opportunity worthy of examination, subject to regulatory coordination and appropriate safeguards.
Balancing Innovation with Regulatory Caution and Risk Mitigation
Saleem Ullah, Deputy Governor of the State Bank of Pakistan, stressed the need to prioritise practical use cases over technology itself. He identified blockchain-enabled remittances and Roshan Digital Accounts as areas worth exploring within a regulatory sandbox environment. He underscored the importance of assessing and mitigating risks, including monetary and financial stability, cybersecurity, anti-money laundering and know-your-customer compliance, and consumer trust, encouraging banks to test relevant solutions through official channels.
Imtiaz Haider, Commissioner of the Securities and Exchange Commission of Pakistan, emphasised the need for a clear, value-driven approach to tokenisation. He urged industry stakeholders and regulators to assess who stands to benefit, identify regulatory gaps, and evaluate Pakistan's readiness to adopt emerging technologies. He stressed that the fundamental question is not how assets can be tokenised, but which assets should be tokenised to deliver meaningful economic value.
Banking Industry Perspective and Practical Implementation Workshops
Zafar Masud, Chairman of the Pakistan Banks Association, outlined the stance of commercial lenders during the proceedings. He noted that banks are not asking to be protected from change, but rather seeking clear regulatory standards that institutions can build toward. As the ultimate delivery channel, banks must be formally engaged from the outset while regulatory frameworks are being developed.
Pakistan's banks are not asking to be protected from this change. We are asking for clear regulatory standards that we can build towards. As the ultimate delivery channel, banks must be formally engaged from the outset, particularly while the regulatory framework is being developed. The industry brings the infrastructure, compliance capabilities and public trust needed to translate innovation into practical financial solutions. This Dialogue marks an important step towards developing a coordinated industry position for engagement with SBP, SECP and PVARA.
Dr Ali Cheema, Vice Chancellor of LUMS, highlighted the importance of connecting research, policy, and industry practice to assess emerging opportunities, address implementation challenges, and build the capabilities required for the future of digital finance. The event also featured a focused industry workshop led by Umar Farooq of J.P. Morgan, bringing together banking technology leaders, regulators, and academia to identify priority use cases, potential pilots, and implementation considerations.
