Pakistan opens door to tokenised sovereign debt, NPCs

Pakistan on Monday initiated high-level discussions on the tokenisation of sovereign debt instruments and Naya Pakistan Certificates (NPCs), signalling a shift toward blockchain-enabled financial infrastructure and digital capital market development.

The meeting was held between Finance Minister Muhammad Aurangzeb, Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority Bilal Bin Saqib, and Adviser on Debt Management Omer Khan, according to a statement issued by the Finance Division.

Officials reviewed potential frameworks for issuing digitally native sovereign notes through a regulated blockchain-based financial infrastructure, with same-day settlement capabilities while maintaining interoperability with traditional international clearing systems linked to Pakistan’s Eurobond programme.

Under the proposed structure, coupon payments, secondary market trading, and final repayments would continue through established global settlement channels, ensuring continuity for institutional investors in Pakistan’s sovereign debt market.

The discussions also covered the possible tokenisation of Naya Pakistan Certificates to broaden access for overseas Pakistanis and expand retail investor participation through digital investment platforms integrated with global markets.

Officials said the Roshan Digital Account initiative has attracted nearly $13 billion in cumulative inflows since its launch in 2020, with funds largely deployed in the domestic economy.

The Finance Ministry, the State Bank of Pakistan, and the Pakistan Virtual Assets Regulatory Authority (PVARA) will continue coordination on regulatory design, governance structure, and phased implementation, while technical work on pilot frameworks and system architecture progresses.

Finance Minister Aurangzeb said Pakistan remains committed to leveraging emerging financial technologies to deepen investor participation and enhance financial accessibility.

Bilal Bin Saqib said programmable financial systems, real-time settlement, and digital networks represent the future of global finance, adding that Pakistan has an opportunity to align with next-generation capital market infrastructure.