Karachi: Federal Finance Minister Muhammad Aurangzeb has stressed the need to introduce cryptocurrency, while emphasizing the digitalization of Pakistan’s banking system.
He said that digital banking in the country is growing rapidly, so the State Bank should consider introducing cryptocurrency in the country with an open mind, while cryptocurrency is already being used in the informal market.
He also stressed the importance of developing a regulatory framework for digital assets and AI, he expressed these views while addressing the first Pakistan Banking Summit 2025 ceremony under the Pakistan Banks Association on Monday.
Later, talking to the media, the Finance Minister said that the next IMF mission will reach Pakistan in the first week of March, which will review the performance of the first 6 months, while a technical mission has reached Pakistan to discuss resilient climate financing.
The mission will stay in Pakistan for 3 to 3 days, he said that PIA will be privatized this year, God willing, the Finance Minister said that the government will not back down from the ongoing reform program, FBR will take the reforms forward with the same spirit.
He said that all emerging markets are different, we have to learn from each other, our prayers were with the cricket team, there is enough potential for minerals in exports, if the tax base is not broadened and deepened, sustainable development is not possible, revenue leakages and corruption must be eliminated.
Through which we will provide relief to the salaried class. We will increase exports and continue to closely monitor the borders.
We are going ahead of Azerbaijan and other countries in regional connectivity, for the first time sugar was exported from the country, not smuggled. He said that the local banking sector is doing well on Kisan Card and solar schemes, the issue of trade with India is geopolitical, while trade relations with Azerbaijan and Turkey are increasing.
Earlier, while addressing the banking summit, the Finance Minister further said that Pakistan’s macroeconomic stability has increased, internal and external accounts have improved.
A current account surplus has been recorded in the first 7 months of the fiscal year 25. Inflation and interest rates have decreased, we are carrying out structural reforms. We are completely digitalizing the FBR. Corruption has reduced by 90% due to faceless assessment.
If agricultural income tax is not structural reform, what is it? He said that he will review the implementation of agricultural reforms with the provincial finance ministers.
An advisory board will be established at the policy level. We are going to reduce the sensation related to the upcoming budget. He said that the privatization of 3 discos is about to begin. We are taking steps to reduce government spending for public finance.
We are talking more about the “how” than the “why” of right-sizing. We will review its implementation. He said that pension-related reforms have been made and losses have been reduced. There will be no sustainable economic development without focusing on population and climate change.
The Finance Minister said that we have given 6 themes in the 10-year partnership, out of which 4 are on climate change and 2 are on finance.
He said that banks should work with SMEDA to build capacity, asked the Prime Minister to close SMEDA but the Prime Minister did not agree, we are lagging behind in green financing, we should have focused on this first, he said that the State Bank is a success story regarding inflows.
Medium-sized banks are doing a good job with regard to SMEs. I also request the big banks to also provide financing for SMEs, the Ministry of Finance will support in this regard.
Digitalization in the FBR has reduced human intervention, but practical matters cannot be completely eliminated. The Finance Minister said that the emerging market has spent the last 25 years in the best way, everyone agrees that we need to focus on what we have in our hands.
The focus of most finance ministers has been on productivity growth, the government should give policies to the private sector so that the private sector can run businesses.
The privatization process and financial management must improve. The Governor State Bank and I were at a global conference in Saudi Arabia. I learned that emerging markets have made good progress in 2025. The finance ministers of emerging markets talked about promoting deregulation and eliminating red tape.
There was talk of joint cooperation and technical assistance among emerging economies. There is a need to focus on regional trade more than global trade. He said that PIA will be brought back to the market for privatization.
Pakistan’s challenge is not unique to it, other emerging economies are also facing these challenges. We need export-led economic growth. We need to not just rely on textiles for exports, but all sectors need to contribute to exports.
We need productivity, which means we need to be globally competitive. If local investment comes, FDI will come. If we talk about global capital markets, we have talked to rating agencies. We hope to come in the single D category.
