Govt eyes tokenisation of bonds via blockchain

ISLAMABAD: Pakistan is likely to link its Naya Pakistan Certificates (NPCs) and sovereign bonds to a regulated blockchain via Digitally Native Notes (DNNs) to enable swift settlement for retail investors, particularly overseas Pakistanis.

A meeting, presided over by Finance Minister Muhammad Aurangzeb with the State Bank of Pakistan (SBP) and the newly created Pakistan Virtual Assets Regulatory Authority (PVARA) on Monday, discussed the tokenisation of sovereign debt instruments and NPCs.

It examined potential structures, implementation pathways, regulatory considerations, and next steps for exploring tokenised sovereign instruments within Pakistan’s evolving financial ecosystem.

A central element of the discussion was the international precedent for sovereign and quasi-sovereign debt tokenisation and how Pakistan can adopt a structure aligned with established global market infrastructure. “It was agreed that PVARA, Ministry of Finance and SBP will continue to coordinate on the design, governance, and phased development of the agenda. Further announcements will follow as the work progresses through the appropriate approvals,” the Ministry of Finance said.

Pakistan plans to issue Naya Pakistan Certificates and sovereign bonds as Digitally Native Notes

The model under consideration, often referred to as a DNN issued through a regulated financial market infrastructure, allows a sovereign bond to be created on a regulated blockchain platform at the moment of issuance, with same-day settlement before integrating with the conventional international clearing and settlement systems that already serve Pakistan’s existing Eurobond programme, added the statement.

The bond’s coupon payments, secondary trading, and final repayment continue through the established global infrastructure, ensuring full interoperability with the institutional investor base that participates in Pakistan’s conventional sovereign issuances.

“The tokenisation of NPCs to potentially enable broader retail participation, improve accessibility for overseas Pakistanis, and create more seamless digital investment rails connected to global markets was also discussed,” the statement said, adding that the session marked one of the first high-level governmental discussions in Pakistan focused specifically on sovereign asset tokenisation and the role blockchain infrastructure can play in modernising capital markets, expanding investor access, and enabling Pakistan to participate in the financial infrastructure of the new economy.

Multilaterals like the Asian Infrastructure Investment Bank and markets like Hong Kong and the Middle East are issuing DNNs to modernise markets and minimise settlement risks.

The meeting noted that the Roshan Digital Account (RDA) had so far attracted close to $13 billion in cumulative inflows from overseas Pakistanis and international investors since its launch in 2020, with the majority of that capital deployed within Pakistan’s economy. “It was further noted that the proposed digital distribution agenda is intended to extend this investment channel to a broader base of eligible global investors under full regulatory supervision”.

The meeting also explored how blockchain-powered financial infrastructure could help take Pakistan to the world by connecting local financial products and sovereign instruments to a wider international investor base through programmable, digitally native markets. Aurangzeb said, “Pakistan remains committed to exploring forward-looking financial technologies that can support economic modernisation, deepen investor participation, and strengthen financial accessibility”.

He added that discussions around tokenised sovereign instruments represent an important exploratory step toward understanding how emerging infrastructure can support the future evolution of Pakistan’s capital markets.

The statement said the financial system of the next century will not run on paper, manual processes, or fragmented rails. It will run on programmable infrastructure, real-time settlement, and borderless digital networks.

Pakistan has an opportunity to leapfrog legacy systems and position itself among the countries building the financial architecture of the future. The tokenisation of sovereign assets is not simply a technology shift; it is a strategic national opportunity to bring Pakistan into the next era of global finance, unlock wider participation in our economy, and connect our markets to the emerging digital capital networks of the world, the statement said.

The meeting also decided to continue technical discussions and institutional coordination on potential frameworks, international benchmarking, regulatory considerations, and pilot structures related to sovereign asset tokenisation initiatives.

Published in Dawn, May 19th, 2026