KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday stressed operationalizing a framework to harness blockchain and crypto technologies’ economic potential and to fast-track their approval process, the Finance Division said amid Islamabad’s push to adopt digital assets.

Islamabad established the Pakistan Crypto Council (PCC) in March to help guide national policy on blockchain, digital currencies and crypto-related investments. This was followed by the government’s announcement of a Strategic Bitcoin Reserve (SBR) at the Bitcoin 2025 Conference in Las Vegas, making Pakistan one of the first Asian countries to integrate Bitcoin into its sovereign asset strategy. The government also plans to establish an autonomous regulatory body to oversee the country’s digital finance and crypto ecosystem.

Aurangzeb chaired a meeting at the Finance Division to review progress on the development of a comprehensive regulatory framework for digital and virtual assets in the country. The law ministry tabled a draft of the proposed legal framework during the meeting, which was developed through close collaboration with members of the PCC, key stakeholders and technical experts.

“During the meeting, the draft was thoroughly reviewed and refined,” the Finance Division said. “It was collectively agreed that in-principle approval process will be fast-tracked to ensure timely enactment and effective implementation.”

The draft legislation outlines a regulatory structure for digital and virtual assets, encompassing governance mechanisms, licensing protocols and investor protection provisions, the statement said. The proposed framework seeks to position Pakistan as a forward-looking participant in the digital asset ecosystem, it added.

‘BEST IDEAS’

Separately, Pakistan’s State Minister for Crypto and Blockchain Bilal Bin Saqib met over a dozen key American officials and lawmakers in Washington to strengthen cooperation in digital assets, blockchain regulation, and financial innovation, his office said.

Saqib met Senator Cynthia Lummis, co-author of the Lummis-Gillibrand Responsible Financial Innovation Act and co-sponsor of the BITCOIN Act, which seeks to designate Bitcoin as a strategic reserve asset.

Saqib’s office said Lummis has been a leading advocate for “thoughtful and comprehensive” crypto legislation in the US.

He also met Senator Ted Cruz, Congressman Troy Downing, who is a member of the House Financial Services Subcommittee on Digital Assets, Congressman Ryan Zinke, Congressman Rick McCormick, and Congressman Derrick Van Orden.

Saqib’s office said these lawmakers were engaged in shaping policy frameworks related to emerging technologies in the US.

“We came to learn, to listen, and to contribute,” Bilal said. “Pakistan is actively studying how global leaders are approaching regulation, innovation, and financial inclusion — not to copy, but to adapt the best ideas for our own unique landscape.”

Pakistan’s broader digital asset strategy includes allocating 2,000 megawatts of surplus power to support Bitcoin mining and AI-driven data zones, aiming to turn untapped energy into economic productivity, job creation and digital infrastructure growth.

As regulatory frameworks continue to evolve globally, Pakistan says it is taking proactive steps to integrate private sector innovation with state policy and international partnerships, positioning itself as a key player in the next phase of the global digital economy.

KARACHI: Pakistan’s government needs to address its tariff and non-tariff barriers against American exports and companies, a spokesperson at the US consulate general in Karachi said on Thursday as both nations seek to forge closer trade ties through negotiations.

Reva Gupta, the spokesperson at the US consulate general in Karachi, made the comments a week after Pakistan and the US started what the official described as “dynamic” negotiations with Finance Minister Muhammad Aurangzeb on Washington’s imposition of tariffs.

The talks take place as US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Pakistan faces a potential 29 percent tariff, currently under a 90-day pause announced in April, on its exports to the US due to a $3 billion trade surplus with the world’s biggest economy.

“In our bilateral engagements with Pakistan, we always message the need to jointly tackle challenges to our trade relationship, including the need for Pakistan to address its longstanding tariff and non-tariff barriers against US exports and companies,” Gupta told Arab News.

The tariffs could be a setback to Islamabad’s hectic efforts aimed at navigating a tricky path to economic recovery. Pakistan hopes to achieve sustainable economic growth driven by exports.

The US is Pakistan’s largest export destination. American exports to Pakistan were valued at $2.1 billion in 2024, up 4.4 percent ($90.9 million) from 2023, according to US government data. The import of goods from Pakistan to the US totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023.

“The United States and Pakistan share a robust economic relationship going back decades, of which trade and investment are key elements,” Gupta said. “That the United States remains Pakistan’s largest export market globally is a testament to this strong partnership”.

Gupta, however, referred to US Trade Representative’s (USTR) National Trade Estimate Report which highlights significant foreign barriers to US exports in various countries, including Pakistan.

 The USTR details tariff and non-tariff hurdles ranging from Pakistan charging higher tariffs to US businesses to the closure of Internet services, imposing a ban on US beef imports and “perceived politicization” of the anti-graft National Accountability Bureau body.

“US companies have cited concerns that Pakistan has been imposing high tariff rates and, in some cases, additional duties, on products such as automobiles and finished goods,” the report said.

Qamar Sarwar Abbasi, a spokesperson of Pakistan’s finance ministry, did not respond to Arab News’ request for comment.

Some prominent American companies operating in Pakistan include Pepsi-Cola, General Electric International, Procter and Gamble, Pfizer and DuPont, according to the International Trade Administration, a US government agency.

Experts have warned the tariffs could harm Pakistan’s competitiveness in the global market, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.

‘LIKELY TO SAIL THROUGH’

However, economist Shankar Talreja, who is also the director of research at Topline Securities Ltd. brokerage form, said talks between Washington and Islamabad are likely to “sail through.”

“Pak-US trade talks are likely to sail through as Pakistan exports are primarily based on labor-intensive industry such as textile,” Talreja told Arab News.

He said Pakistan is likely to increase its import of agricultural commodities such as cotton and petroleum products from the US to fill the trade deficit.

But if talks fail, Pakistani textile exports may be adversely affected, he said.

“If talks are not successful, Pakistan textile exports may get hurt in future assuming other countries will successfully negotiate with the US,” the analyst warned.

The textile industry attracts the largest amount of foreign exchange for Pakistan, fetching $17 billion for the cash-strapped nation in FY2024.