Cryptocurrency: Aurangzeb advocates ‘open-minded’ approach to regulation

KARACHI: Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, Monday said Pakistan’s macroeconomic stability has improved, with better performance in both internal and external accounts.

Speaking at the first Pakistan Banking Summit 2025, organized by the Pakistan Banks Association (PBA) held at local hotel, Aurangzeb also informed that that an International Monetary Fund (IMF) mission will arrive in Pakistan in the first week of March to review the country’s economic performance over the initial six-month period.

He also revealed that a technical mission has already arrived to discuss flexible climate financing.

Aurangzeb said the government is already late to initiate working on digital assets and now we are working on its regulations, urging the authorities to adopt the potential introduction of cryptocurrency with an “open mind” amid significant developments in digital banking in Pakistan.

The finance minister highlighted key economic developments and future plans, asserting that Pakistan’s macroeconomic stability has improved with notable progress in both internal and external account. “We’ve recorded a current account surplus in the first seven months of fiscal year 2025, while inflation and interest rates have shown a declining trend,” he added.

Regarding privatization efforts, he confirmed that Pakistan International Airlines (PIA) is expected to be privatized within the current year. The federal finance minister emphasized that the government remains committed to its ongoing reforms program, particularly in strengthening the Federal Board of Revenue (FBR) through digitalization initiatives.

He noted that the implementation of faceless assessments has resulted in a 90 percent reduction in corruption.

On international trade, Aurangzeb highlighted growing trade relations with central Asian countries and Turkey, while acknowledging that trade with India remains subject to geopolitical considerations.

He also mentioned that Pakistan has achieved a milestone by becoming a sugar exporter for the first time, moving away from its previous status as an importer.

The Finance Minister outlined several focus areas for economic sustainability, including agricultural reforms, pension system improvements, and climate change initiatives. “Sustainable economic growth is impossible without addressing population growth and climate change challenges,” he emphasized.

He also mentioned that the government is working on six partnership themes with international financial institution over a 10-year period, with four focused on climate change and two on finance.

The privatization of three power distribution companies (DISCOs) is also set to begin soon, as part of the government’s broader economic reforms agenda. The Federal Finance Minister further highlighted the banking sector’s positive performance in farmer card programs and solar schemes, demonstrating the financial sector’s role in supporting sustainable development initiatives.

He also delivered a comprehensive vision for Pakistan’s economic transformation at the PBA Summit, detailing recent achievements and unveiling extensive plans for structural reforms across multiple sectors.

He detailed plans for streamlining government expenditure through right-sizing and implementing agricultural reforms, including agricultural income tax.

The minister announced plans for regular reviews with provincial finance ministers on agricultural reform implementation and the establishment of a policy-level advisory board, inviting banking sector to be a part of advisory board.

Addressing SME sector development, Aurangzeb announced the creation of an SME index to be launched this year, encouraging larger banks to increase SME financing, adding that government is striving for export led economy and now every sector has to contribute for exports.

He emphasized the importance of collaboration with SMEDA for bank capacity building. Sharing insights from his recent attendance at a global conference in Saudi Arabia with the State Bank Governor, Aurangzeb discussed how emerging markets’ finance ministers emphasized private sector leadership, deregulation promotion, and red tape elimination.

The minister stressed the importance of diversifying exports beyond the textile sector and enhancing productivity for global competitiveness.

He emphasized the need to attract foreign direct investment through local investment and strengthen regional connectivity, particularly with Central Asian countries, while implementing strict border monitoring for trade regulation.

“We’re working to reduce uncertainty regarding the upcoming budget,” he said, announcing to provide tax relief to the salaried class.

Aurangzeb informed that pension reforms have been implemented to reduce losses. He expressed optimism about Pakistan moving into the single ‘D’ category in global capital markets, following discussions with rating agencies.

The minister concluded by emphasizing the importance of learning from others and abandoning the “we know everything” approach, stating that sustainable economic growth must consider population dynamics and climate change challenges.

On the occasion, Zafar Masud Chairman PBA & CEO Bank of Punjab, Muneer Kamal, Secretary & CEO PBA, Atif Bajwa Chairman, Pakistan Banking Summit 2025 and CEO, Bank Alfalah, Presidents of banks, bankers and industry experts were also present.

Copyright Business Recorder, 2025