Pakistan explores tokenisation of existing Eurobond debt, says Aurangzeb

Finance Minister Muhammad Aurangzeb said on Monday that Pakistan is examining whether its outstanding Eurobond debt could be tokenised. Speaking at a Pakistan Banks’ Association and LUMS event, he said discussions are under way and Cabinet clearance is being sought before the government invites proposals from potential providers.

The idea is to assess digital tools for handling sovereign borrowing, while banks have been urged to develop workable proposals in this area. Pakistan’s Virtual Assets Act 2026 created a legal framework overseen by the Pakistan Virtual Assets Regulatory Authority, and the State Bank has set conditions for banks serving licensed businesses. Banks still cannot use their own funds or customer deposits to trade, invest in or hold virtual assets, Aurangzeb said, adding that oversight and cybersecurity safeguards remain important.