Pakistan digital finance reforms are now front and centre of the country’s pitch to foreign investors. In a high-level Islamabad meeting, the Finance Ministry’s adviser walked a visiting Middle East fintech delegation through everything from instant payment rails to newly live digital banks and an upcoming blockchain framework, sending a clear signal that Pakistan is open for fintech capital.
Pakistan Digital Finance Reforms Take Centre Stage
Finance Ministry adviser Khurram Schehzad recently sat down with a delegation of international fintech investors from the Middle East, led by Dr. John Sfakianakis, Chairman of Fintech Solutions Holding, and the company’s CEO Kirill Smolin. The visit was facilitated by local technology firm Tech Avenue.
The meeting was not just a courtesy call. Schehzad gave a detailed briefing on Pakistan’s economic stabilisation story, its reform progress, and, crucially, the digital infrastructure that now underpins the financial system. The delegation came away with a picture of a country that has done significant groundwork and is actively looking for partners to scale it up.
For foreign investors watching from the Gulf, the timing matters. Pakistan’s macroeconomic indicators have improved after a period of stress, and the government wants to convert that stability into a sustained flow of fintech investment. As the official Finance Ministry press release noted, consistent policy work has strengthened fundamentals and renewed global confidence.
Raast Is the Backbone of Pakistan Digital Finance Reforms
A big part of the briefing was about Raast, the State Bank of Pakistan’s instant payment system. Raast allows real-time, low-cost, and interoperable digital payments across the country. It works as a public digital rail that any bank or fintech app can plug into, which is exactly the kind of open infrastructure that attracts foreign platforms.
The numbers behind Pakistan’s payment shift are striking. According to data shared at industry events, 92% of retail payments in the second quarter of FY2025-26 were made through digital channels, covering 3.1 billion transactions. That is not a niche market, it is the mainstream. For any fintech firm eyeing a new market, a population already comfortable with digital payments is a strong entry signal.
easypaisa and Mashreq Digital Banks Now Operational
One of the strongest points in Schehzad’s pitch was the status of Pakistan’s new digital banks. Three digital retail banks are now in operation in Pakistan: easypaisa Bank Limited, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited. These are not pilots, they are live, licensed, and serving customers.
Easypaisa, Pakistan’s first digital bank to receive a retail banking licence from the State Bank of Pakistan, has grown into a formidable platform. It now has over 59 million registered users, processed more than 4.5 billion transactions in 2025, and those transactions were valued at over PKR 15 trillion, roughly 13% of Pakistan’s GDP. That scale alone makes it one of the most significant financial platforms in the country.
Mashreq Bank Pakistan brings a Gulf angle that is directly relevant to the Middle East investors in the room. Mashreq is a UAE-based bank, and its decision to obtain a Pakistani digital banking licence signals that established Gulf financial names are already confident enough to commit capital and obtain a licence here, not just explore the market.
Pakistan’s financial inclusion rate has climbed from 47% in 2018 to 67% in 2025, partly driven by these digital platforms. But that still means tens of millions of Pakistanis remain outside the formal financial system. The digital banks are the main tool the government is counting on to close that gap. If you want to understand how serious that gap still is, our earlier look at Pakistan’s unbanked population in the World Bank’s Findex 2025 report puts the challenge in sharp context.
A Blockchain and Web3 Framework Is Coming
Perhaps the most forward-looking part of Schehzad’s briefing was on blockchain, Web3, and virtual assets. Pakistan is working on a responsible regulatory framework for these technologies, and authorities are already engaging with global platforms as part of that process. The goal is to support innovation while also protecting investors and ensuring compliance.
This is a meaningful shift in tone. For years, Pakistan’s official position on crypto and blockchain was cautious at best. The fact that a senior Finance Ministry official is now briefing foreign investors on an upcoming framework, and framing it as an opportunity, marks a clear change in direction. It also fits with a broader regional trend: the UAE, Bahrain, and Saudi Arabia have all moved to regulate, not ban, digital assets, and Pakistani policymakers are clearly watching that playbook.
The government’s Cashless Pakistan initiative is also structured around three pillars: growing digital payment adoption, building public digital infrastructure, and digitising government transactions. All three are moving in parallel, and all three are areas where foreign fintech firms can find a role.
Why This Matters for Pakistan’s Tech Sector
Pakistan’s push to attract fintech capital is part of a larger story about using technology to formalise the economy. When more payments move through digital rails, more transactions become visible to the tax system, credit scoring becomes possible for people who never had a bank account, and government spending becomes easier to track and audit.
For ordinary Pakistanis, the practical win is access. A farmer in Punjab or a small trader in Karachi who can open a digital bank account in minutes, access credit through an app, and pay suppliers via Raast is participating in an economy that was previously closed to them. That is the promise of these reforms, and the reason foreign investors are paying attention.
The delegation left the meeting expressing interest in long-term investment and partnerships, which suggests the pitch landed. Whether that translates into actual capital flows will depend on policy consistency, something the adviser himself emphasised as the foundation of Pakistan’s current appeal.
Frequently Asked Questions
What are Pakistan’s digital finance reforms about?
Pakistan digital finance reforms focus on three main areas: expanding digital payments through the Raast instant payment system, launching fully licensed digital banks, and building a regulatory framework for blockchain and virtual assets. The goal is to increase financial inclusion and attract foreign investment.
Which digital banks are now live in Pakistan?
Three digital banks are currently operational under the State Bank of Pakistan’s licensing framework: easypaisa Bank Limited, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited. Several others are still working toward their launch.
What is Raast and how does it work?
Raast is Pakistan’s national instant payment system, run by the State Bank of Pakistan. It lets banks, wallets, and fintech apps move money between accounts in real time at very low cost. It acts as shared digital infrastructure that any licensed player can use, similar to India’s UPI or the UK’s Faster Payments.
Is Pakistan building a crypto or blockchain law?
Yes. Pakistan’s Finance Ministry has confirmed it is working on a regulatory framework covering blockchain, Web3, and virtual assets. Authorities are engaging with global platforms to shape rules that allow innovation while protecting investors. No final law has been passed yet, but the framework is actively being developed.
