Islamabad ( The COW News Digital) Pakistan is moving closer to introducing a central bank digital currency (CBDC) with a proposed $100,000 annual limit on digital currency and asset transfers abroad, officials revealed during a Senate committee session. The measure will be regulated under the Foreign Exchange Regulation Act (FERA) and overseen by the State Bank of Pakistan (SBP).
Speaking to the Senate Standing Committee on Finance, Dr. Inayat Hussain, Acting Deputy Governor of SBP, stated that the central digital currency would be fully controlled by the State Bank and pegged to the Pakistani rupee. “Once issued, users will have the option to withdraw either rupees or digital rupees from their accounts,” he said, adding that the digital currency’s value will remain equal to the rupee.
The committee, chaired by Senator Saleem Mandviwala, began the clause-by-clause approval process for the Pakistan Virtual Assets Regulatory Authority (PVARA) Bill, which forms a key part of the regulatory framework required before CBDC launch. Shahroz Bakhtiar, legal advisor to the Ministry of Law, acknowledged that the existing FERA rules are insufficient to cover digital assets and will require amendments.
Senator Afnanullah Khan highlighted the urgency, noting that Pakistanis’ investment in digital assets has exceeded $21 billion, calling for immediate legislation to safeguard investors and regulate transactions.
The Ministry of Law, represented by Secretary Raja Naeem Akbar, confirmed that all global and local regulations, including FATF recommendations and the Anti-Money Laundering Act, will apply to digital currency operations. Furthermore, foreign companies offering digital asset services in Pakistan will be required to establish local offices.
The committee also decided that PVARA will operate under the Ministry of Finance, with a chairman age limit of 55 years. Officials emphasized that the proposed CBDC framework aims to create a secure and fully regulated digital financial ecosystem while providing flexibility for users.
This move follows the State Bank’s 2018 decision to ban cryptocurrencies, requiring banks to report suspicious transactions to the Financial Monitoring Unit (FMU). With the CBDC framework, Pakistan aims to provide a legal, secure, and regulated alternative to unregulated cryptocurrencies, balancing innovation with financial oversight.
The initiative is expected to strengthen investor confidence, ensure compliance with international standards, and provide Pakistanis with a state-backed digital financial instrument.
