NEW YORK: Pakistan is moving toward a regulated virtual-assets framework as the government explores blockchain and tokenization to reduce remittance costs, expand financing for small and medium-sized enterprises and improve access to financial services, Finance Minister Muhammad Aurangzeb said.
Aurangzeb made the remarks during a series of high-level engagements in New York on the first day of his visit for the United Nations General Assembly’s High-Level Week of the 81st Session, according to a statement issued Tuesday.
Speaking at the “United Nations Digital Cooperation Day 2026, Blockchain and the Tokenised Future: Sovereign Choices and Safeguards for Next-Gen DPI,” the finance minister outlined Pakistan’s transition toward a regulated virtual-assets framework.
He said tokenization should focus on practical economic needs, including cheaper remittances, SME financing, sovereign debt management and broader financial access. Aurangzeb also stressed the need to balance private-sector innovation with strong government safeguards, inclusive digital infrastructure and international cooperation.
He called for emerging economies to have a meaningful role in shaping international standards for digital assets and blockchain-based financial systems.
Aurangzeb also highlighted Pakistan’s vulnerability to climate change and the potential role of digital transformation and tokenization in supporting disaster response and climate-related investment. He said climate commitments needed to translate into practical projects capable of attracting financing.
At the World Economic Forum’s “Financing Planet and Prosperity” meeting, Aurangzeb emphasized Pakistan’s exposure to climate-related disasters, particularly floods that have caused significant damage to infrastructure and affected communities.
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He outlined government efforts to strengthen disaster-response mechanisms, expand early-warning systems and develop costed climate-investment plans. He added that international assistance should be supported by domestic resources and adequate fiscal buffers.
The finance minister said Pakistan had mobilized financing through the World Bank, Asian Development Bank and international capital markets for relief, adaptation and reconstruction.
He also urged international climate-financing institutions, including the Green Climate Fund and the Loss and Damage Fund, to simplify procedures and accelerate access to funding for vulnerable countries.
Aurangzeb separately participated in the launch of the COP31 Action Agenda and expressed Pakistan’s support for the initiative, saying it aligns closely with the country’s national climate priorities and NDC 3.0.
He identified clean energy and electrification, renewable-energy expansion, energy-efficient buildings, climate-resilient cities, climate education, food security and climate-resilient agriculture among the shared priorities.
Welcoming the proposed Climate Implementation Bridge, Aurangzeb said the mechanism could help convert national climate commitments into investable and bankable projects.
He said the central challenge was no longer simply developing climate plans but ensuring their effective implementation. Aurangzeb also welcomed the agenda’s action points and key performance indicators, describing them as focused on measurable outcomes.
