Pakistan explores tokenization of sovereign bonds, Naya Pakistan Certificates

Pakistan is exploring the tokenization of sovereign debt instruments and Naya Pakistan Certificates to enable broader retail participation, improve accessibility for overseas Pakistanis, and create seamless digital investment rails connected to global markets.

The plan was discussed in a meeting between Finance Minister Muhammad Aurangzeb and Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal Bin Saqib on Monday.

What is Pakistan's plan for sovereign debt tokenization?

The model under review is a Digitally Native Note (DNN) that allows a sovereign bond to be created on a regulated blockchain platform and enables same-day settlement while remaining interoperable with the global clearing systems used for Pakistan's Eurobond program.

The note would then integrate with conventional international clearing and settlement systems already serving Pakistan's existing Eurobond program.

Coupon payments, secondary trading, and final repayment would continue through established global infrastructure. This ensures full interoperability with the institutional investor base in Pakistan's conventional sovereign issuances.

The proposal also includes tokenizing Naya Pakistan Certificates to enable broader retail participation. The aim is to improve accessibility for overseas Pakistanis.

Tokenization would also create more seamless digital investment rails connected to global markets. That could broaden the certificate's appeal beyond its current overseas Pakistani base.

PVARA, the Ministry of Finance, and the State Bank of Pakistan will coordinate on design, governance, and phased development of the tokenization.

What happens next on Pakistan's tokenization agenda?

Aurangzeb said Pakistan remains committed to exploring forward-looking financial technologies that can support economic modernization.

The discussions, he said, represent an exploratory step in understanding how emerging infrastructure can shape Pakistan's capital markets.

Saqib said the discussions are about reimagining how Pakistan raises capital and expands investor participation. Tokenization can make instruments more accessible to overseas Pakistanis and global retail investors, he said.