Pakistan Eyes Blockchain to Revolutionize Multibillion-Dollar Remittances
Pakistan is considering adopting blockchain technology to enhance the speed and reduce the costs of remittances from overseas workers, a move that could transform the country’s financial landscape. Bilal bin Saqib, chief adviser to the finance minister and a key figure in the newly formed Pakistan Crypto Council (PCC), revealed the plans during an interview.
As one of the top 10 recipients of global remittances, Pakistan received over $31 billion in 2023-24 through conventional channels that are often slow and expensive, with fees exceeding 5%. Saqib believes blockchain technology could significantly streamline this process by cutting out intermediaries like correspondent banks, thereby reducing transaction costs and delays.
Driving Financial Innovation Through Blockchain
“The PCC will explore blockchain-based remittance solutions to minimize costs and improve transfer efficiency,” Saqib stated. He added that the council also plans to invest in blockchain education and Web3 development to foster local talent, create employment opportunities, and drive economic growth.
The PCC is advocating for a clear regulatory framework to support blockchain and Web3 innovation. Saqib highlighted the importance of aligning these efforts with Financial Action Task Force (FATF) standards to ensure compliance and avoid potential regulatory pitfalls. Pakistan was removed from the FATF’s gray list in 2022, and maintaining that status remains a key priority.
Despite the State Bank of Pakistan’s (SBP) 2018 ban on financial institutions facilitating cryptocurrency transactions, Pakistan remains one of the top five Asian nations in terms of crypto adoption, according to the 2024 Global Crypto Adoption Index by Chainalysis. Saqib noted that with over 60% of Pakistan’s 240 million population under the age of 30, the country’s tech-savvy youth represent an untapped resource for blockchain and Web3 growth.
Challenges and Regulatory Roadblocks
Saqib acknowledged the risks associated with unregulated cryptocurrency activity, including illegal outflows and untracked cross-border transactions, which could worsen the country’s dollar shortage. He stressed that the PCC’s first step would be to establish a robust regulatory framework requiring know-your-customer (KYC) and anti-money laundering (AML) compliance for all crypto-related activities.
“The demand for crypto and blockchain solutions is already there, but without proper regulation, it remains a gray area,” Saqib said.
Global Trends and Strategic Considerations
The global crypto landscape is evolving rapidly. Following Donald Trump’s recent victory in the U.S. presidential election, the former president announced plans for a strategic Bitcoin reserve using seized assets. While such a move could signal broader acceptance of digital assets, Saqib noted that Pakistan’s crypto enforcement remains in its early stages.
“Building a BTC reserve could be attractive, but Pakistan would need to engage with the IMF and FATF to avoid jeopardizing international financial support,” he cautioned.
Unlocking the Future
Beyond remittances, the PCC is also exploring other blockchain applications, such as tokenizing real-world assets and establishing regulatory sandboxes to test new financial models. Saqib remains optimistic about Pakistan’s potential to emerge as a regional leader in blockchain and Web3 innovation.
“With the right framework and strategic investments, blockchain could revolutionize not just remittances but Pakistan’s broader financial ecosystem,” he said.
