After years of struggle, Pakistan’s fintech sector ‘finds its feet’

Pakistan’s fintech industry is showing signs of a strong rebound after years of lagging behind regional powerhouse India, as investors’ interest and simplified regulatory framework increases funding inflows, Forbes reported.

The global publication said venture funding in the country’s fintech sector surged from $10.4 million in 2019 to $150 million in 2022, positioning Pakistan as an emerging player in digital finance. But the momentum slowed in 2023, as funding dropped to $12.5 million amid global economic uncertainty.

Investment has since recovered, roughly doubling to $26.3 million in 2024 and reaching $52.5 million in the first half of 2025. By late November, Pakistan’s 450 fintech firms had collectively raised $391 million in venture capital, Forbes said.

The year’s largest deal was a $52 million pre-Series A round by supply-chain fintech Haball. Meezan Bank, Pakistan’s biggest Islamic lender, provided $47 million of the funding. Forbes said the investment stands out not only for its size but also as one of the most prominent collaborations between a traditional bank and a digital startup in Pakistan.

Stronger regulatory support is also helping sustain the sector’s momentum. The state-backed Pakistan Startup Fund is offering equity-free grants aimed at attracting more venture capital, Forbes reported.

Pakistan has also created a regulatory and licensing structure for digital banks, with five entities — including Easypaisa and Mashreq Bank — expected to begin pilot operations by early 2025. The reforms aim to raise adult financial inclusion from 64% in 2023 to 75% by 2028.

Pakistan has also emerged as a major player in digital assets. It ranked third globally — behind India and the United States — on Chainalysis’s 2025 crypto adoption index. Forbes described Pakistan as a “rising star in digital assets,” even as the government begins developing a formal regulatory framework for virtual currencies.

Unlike Bangladesh and Nepal, which have declared cryptocurrencies illegal, Forbes said Pakistan has maintained a more open approach. That is beginning to shift as regulators work to establish new virtual asset rules, the report said.

Pakistan also gained a position in global cryptocurrency governance after Bilal Bin Saqib, chairman of the Pakistan Virtual Asset Regulatory Authority, joined the World Economic Forum’s Steering Committee on Digital Asset Regulations, Forbes noted.

Pakistan's fintech sector has grown exponentially in 2025 with increased adoption of digital payment mechanisms.

Digital payments accounted for 88% of all retail transactions in Pakistan in FY2025, according to the central bank's data. This shift is significant given the cash-dominated nature of the country's economy.

The expansion of digital payment infrastructure has led to the entry of new players in Pakistan's fintech sector.

Earlier this year, Pakistan’s fintech company ABHI was selected as one of the eight startups worldwide to join Mastercard Start Path’s Small Business program, according to a statement.

This program, by the global payment gateway, supports startups in scaling their business and developing products for small businesses globally. According to Mastercard, the program has supported over 500 startups in 55 countries, which have gone on to raise more than $25 billion in capital.

In October, Pakistan’s fintech startup ZAR has raised $12.9 million in fresh funding to pilot dollar-backed stablecoins, a move seen as a major boost for Pakistan’s growing crypto market.

Two Pakistani fintech startups, Haball and PostEx, were also named to the Forbes Asia 100 to Watch 2025 list, joining an exclusive group of emerging businesses across the Asia-Pacific recognized for innovation and impact.