Pakistan Set to Launch Its First Digital Currency in 2025
Pakistan plans a first step that feels long overdue. Cash still rules daily life. Lines form. Fees bite. Delays hurt. Yet, in 2025, the State Bank of Pakistan (SBP) will test a central bank digital currency (CBDC). This “digital rupee” could change how people pay, save, and receive aid. It aims to reach towns with weak signals and thin bank access. And yes, it may cut costs that drain public money.
- SBP will pilot a CBDC in 2025 with Soramitsu.
- Japan’s Ministry of Economy, Trade, and Industry supports the platform.
- The CBDC will work offline for areas with poor internet.
- RAAST has already moved Rs 8 trillion since 2021, officials say.
- 130 million+ adults remain unbanked, according to the World Bank (2021).
- Pakistan spends Rs 28 billion each year managing cash, per SBP 2022–23.
CBDC vs RAAST (Quick Look)
| Feature | RAAST (Since 2021) | CBDC (Digital Rupee, 2025 Pilot) |
| What it is | Real-time payment rail | Legal tender issued by SBP |
| Core role | Moves money between accounts | Is the money in digital form |
| Bank reliance | Runs through banks and wallets | Not tied to bank balance sheets |
| User cost | Free transfers for many use cases | Expected very low or zero fees |
| Inclusion | Helps the banked and wallet users | Designed for banked and unbanked |
| Offline mode | No | Yes |
CBDC Pilot – Features & Scope
Technology & Partnership
SBP will build the pilot on Soramitsu’s CBDC platform. The effort includes offline payments for weak signal areas. Moreover, this design can keep small payments moving during outages. Officials frame it as resilience by default.
Coverage & Scale
Pakistan counts 250 million people and a $400 billion economy. Therefore, the pilot is Soramitsu’s largest to date. It is far bigger than Cambodia’s Bakong system. Yet the goal stays modest at first: test, learn, and scale safely.
Planned Uses
SBP and the government plan several use cases.
- Welfare: Direct BISP and Ehsaas payments to CBDC wallets.
- Utilities: Programmable bill payments for power, gas, and water.
- Remittances: Safer channels to shrink $8 billion in informal flows (World Bank, 2023).
However, each use case needs controls for fraud, privacy, and abuse.
The Stakes: Hard Numbers, Real Lives
Cash is heavy, slow, and costly at scale. According to SBP’s 2022–23 report, Pakistan spends Rs 28 billion each year on cash logistics. That includes printing, storage, distribution, and ATM upkeep. Meanwhile, as of mid-2023, cash still made up about 62% of transaction volume. So, a programmable digital rupee could trim those costs and delays.
Yet the human side hurts more. The World Bank’s Global Findex 2021 shows 100+ million Pakistani adults outside formal finance. As a result, they miss secure savings and fast payments. They wait for checks to clear. They pay ATM fees that sting. And they risk theft when moving cash by hand.
“We are building up our capacity for a digital currency,” said SBP Governor Jameel Ahmad in 2025.
“CBDCs can enhance financial inclusion with safe, convenient digital payments,” noted an IMF review in 2022.
Why It Matters
These lines feel hopeful, but they also carry weight because delay means more lost hours, more lost wages, and more missed chances.
- Access: Rural families can pay and save with a phone, not a branch.
- Speed: Welfare can reach homes fast, with fewer leakages.
- Cost: Digital cash can reduce cash-handling and ATM fees.
- Stability: The digital rupee is a sovereign instrument, issued by SBP.
- Alignment: It supports URAAN and E-Pakistan goals for digital inclusion.
- Global Fit: It follows China’s digital yuan and the Bahamas’ Sand Dollar push.
Guardrails: Law, Oversight, and Trust
The trust will decide whether people use a digital rupee. Therefore, rules must be clear. In 2024, Pakistan advanced a Digital Currency Regulatory Framework for data protection, security, and licensing. In 2025, lawmakers also set up the Pakistan Virtual Asset Regulatory Authority (PVARA) under the Virtual Assets Act. Together, these steps aim to meet FATF standards on AML and KYC. According to the BIS (2023), strong safeguards are vital. Otherwise, CBDCs can raise risks of fraud and privacy loss.
So, SBP will need strict access controls and audit trails. Moreover, clear dispute rules and support channels are needed. People must know who covers losses and how redress works. Without that, adoption will stall.
Building a Stronger Digital Finance Network
Pakistan’s CBDC pilot will not replace RAAST. Instead, it will work beside it. RAAST moves money well; the CBDC becomes the money, with new features. If done right, both systems can form a stronger grid. And that grid can carry people out of cash traps and into safer ground.
Still, the risk is real. Cyber threats grow. Scams adapt. Rules must keep up. Yet the status quo already hurts the most vulnerable. So, testing a digital rupee in 2025 is not a leap of faith. It is a measured step toward fairer, faster, and cheaper payments.
