Pakistan is preparing to step into the digital finance space by planning to tokenize a portion of its domestic government debt, a move aimed at modernising the public debt market and attracting a broader range of investors.
Adviser to the Finance Minister Khurram Schehzad said the Ministry of Finance Pakistan intends to tokenize up to $2 billion worth of domestic government debt in the first phase, with a particular focus on enabling participation by retail investors.
The plan was shared during ITCN Asia, one of the country’s largest annual technology exhibitions, where policymakers and industry leaders discussed emerging technologies, digital finance, and financial innovation.
Tokenization involves converting traditional financial assets, such as government bonds, into digital tokens recorded on a blockchain. These tokens can be bought, sold, and held electronically, helping reduce transaction costs, improve transparency, and provide access to investors who are typically excluded from institutional debt markets.
Schehzad explained that the initiative is designed to broaden investor access and modernise Pakistan’s debt ecosystem. He noted that the first phase will primarily target retail investors, allowing individuals to participate directly in government debt instruments through digital means.
Officials said the government has increasingly used platforms like ITCN Asia to share early policy thinking around digital finance, artificial intelligence, and next-generation technologies. However, they cautioned that many of these initiatives are still at an exploratory stage and will require further regulatory and technical work before full implementation.
If carried out, the plan could represent a significant shift in how Pakistan raises and manages public debt, potentially integrating blockchain-based instruments into the financial system while expanding participation beyond banks and large institutional investors.
