Pakistan plans $2B tokenization of treasury bills in digital debt push

Pakistan is preparing to enter the digital finance space through its plans to tokenize a portion of its treasury bills and other government-backed assets, a move aimed at broadening investor participation and modernizing the country’s public debt market, officials said.

Adviser to the Finance Minister Khurram Schehzad said the Ministry of Finance intends to tokenize up to $2 billion of treasury bills and other government bonds in the first phase, with a primary focus on enabling retail investor participation. He disclosed the plan while speaking at ITCN Asia, one of Pakistan’s largest annual technology exhibitions.

“The Ministry of Finance has planned to tokenize a portion of domestic debt worth $2 billion in the first phase, primarily targeting retail investors,” Schehzad said at the forum, where policymakers and industry leaders discussed emerging technologies and financial innovation.

Tokenization involves converting traditional financial assets, such as government bonds, into digital tokens recorded on a blockchain.

The process allows assets to be bought, sold and held electronically, potentially reducing transaction costs, improving transparency and widening access to investors who are typically excluded from institutional debt markets.

Schehzad said the initiative is designed to broaden investor access and modernize Pakistan’s debt ecosystem as the government explores the use of digital finance and next-generation technologies.

Analysts said the proposal could help diversify the investor base but cautioned that regulatory clarity and infrastructure readiness will be critical.

“Tokenizing government debt could improve liquidity and retail participation, but its success will depend on strong legal frameworks, investor protections and coordination with financial regulators,” said a financial markets analyst.

The ITCN Asia is one of the leading events in Pakistan that helps showcase early-stage policy thinking on digital finance, artificial intelligence and other emerging technologies.

If executed, the move could mark a significant shift in how Pakistan raises and manages public debt, potentially integrating blockchain-based instruments into the country’s financial system while expanding participation beyond banks and large institutions.