Pakistan looks at tokenising its Eurobond debt, Aurangzeb says, pending cabinet approval

Pakistan is exploring the tokenisation of its existing Eurobond debt, Finance Minister Muhammad Aurangzeb said on Monday 2 November 2026, and will ask the federal cabinet for approval before issuing a request for proposals (RFP), Business Recorder reported. He was speaking at the "Dialogue on Digital Assets and the Future of Banking", organised by the Pakistan Banks' Association (PBA) with LUMS.

"We are in discussions at this point, and we are looking forward to the Cabinet approval on this, before we move ahead with issuing the RFP on this front," Aurangzeb said.

What tokenising a Eurobond means

A Eurobond is a bond Pakistan sells abroad in dollars to borrow from international investors. Tokenising it means recording who owns the bond as digital tokens on a blockchain instead of only through the usual chain of custodians and clearing houses. Supporters say tokens can be settled faster, traded around the clock and split into small pieces, which could widen the pool of buyers for Pakistani debt. The minister did not say which bonds, how much debt or which platform would be involved; those details would come with the RFP.

The government is not issuing new debt by doing this. The plan, as described, concerns bonds already sold.

What Aurangzeb told the banks

• Get involved: he urged banks to bring practical proposals on digital finance, saying they have the customer relationships, operating experience and risk management the work needs, and to build the expertise to assess the technology with their regulators and boards.
• The rules now: Pakistan's Virtual Assets Act 2026 set up the Pakistan Virtual Assets Regulatory Authority (PVARA) to license and supervise virtual asset service providers. The State Bank has given banks a conditional route to serve PVARA-licensed businesses, subject to due diligence and keeping client funds separate.
• What banks still cannot do: invest in, trade or hold virtual assets with their own money or with customers' deposits. Those restrictions remain, the minister said.
• Security: he said the system is "under attack 24/7 by state and non-state actors", so innovation must come with safeguards, oversight and cybersecurity.

Why it matters for you

Nothing changes for savers or bank customers today: your deposits cannot be put into crypto by your bank. What it signals is that the government wants Pakistan's debt to reach new kinds of investors, which, if it works, can mean cheaper borrowing over time. The warning on security comes days after the record Binance hack, a reminder of the risks on the other side.

Interest rates at home are on our KIBOR page and the SBP policy rate page. For the rupee against the dollar, see USD to PKR today.