Pakistan Eyes $400m Annual Remittance Savings With Stablecoins
ISLAMABAD: Pakistan is examining whether regulated stablecoins could lower the cost of receiving overseas remittances, with the head of the Pakistan Virtual Assets Regulatory Authority estimating that even a modest reduction in transaction charges could generate substantial annual savings. PVARA Chairman Bilal bin Saqib said a one-percentage-point cut in costs applied to roughly $40 billion in annual remittance inflows could translate into savings of about $400 million.
The proposal is part of a broader effort to bring virtual-asset activity into Pakistan's formal regulatory system and identify practical economic uses for blockchain-based financial infrastructure. Officials are looking beyond cryptocurrency trading toward applications such as international payments, digital export receipts, trade finance, private credit and tokenised financial assets. The stablecoin proposal remains an area under consideration rather than an announced replacement for Pakistan's existing remittance channels.
Saqib said much of Pakistan's overseas remittance flow continues to move through conventional international banking networks. He pointed to the cost of sending money across borders as an area where regulated digital settlement systems could potentially provide an advantage. World Bank figures cited in reporting on his remarks put the global average cost of sending $200 at around six per cent, highlighting the financial burden transfer fees can place on migrant workers and recipient families.
Pakistan has meanwhile opened its licensing process for Virtual Asset Service Providers as authorities move to regulate an industry that has previously operated largely outside a dedicated domestic framework. Under Section 70 of the Virtual Assets Act, 2026, existing service providers have been instructed to apply for a No-Objection Certificate by September 5. Providers that fail to meet the deadline would be required to stop operating, according to the regulatory framework outlined by officials.
The government is also considering how faster and less expensive digital-payment infrastructure could benefit Pakistan's expanding community of freelancers, software developers, designers and other professionals earning income from overseas clients. Saqib said policymakers need to consider how Pakistani digital workers will receive global payments in the coming years, including the speed, cost and transparency of those transactions and how more of that income can be captured within the formal economy.
Another area under review is tokenisation, which could potentially widen access to financing for businesses and economic sectors that traditionally struggle to obtain credit. Saqib highlighted small and medium-sized enterprises, exporters, agriculture, energy and infrastructure as possible areas for future applications. He noted that SMEs represent a large share of Pakistan's businesses and economic output, while formal financing available to the sector remains comparatively limited.
PVARA's regulatory strategy is being presented in stages. The first involves establishing the legal and supervisory structure for virtual assets, followed by licensing credible operators and strengthening safeguards including anti-money-laundering compliance. A later phase is expected to focus more heavily on nationally relevant uses such as remittances, cross-border settlements, digital exports, trade finance, private credit and tokenised securities, with officials stressing that proposed applications should demonstrate measurable economic value for Pakistan.
The potential impact could be significant because remittances are one of Pakistan's most important sources of foreign exchange and provide direct financial support to millions of households. However, the projected $400 million figure depends on achieving the assumed one-percentage-point reduction in transfer costs and on regulated stablecoin systems being adopted at meaningful scale. The next steps will depend on implementation of the new licensing framework, compliance by virtual-asset providers and further policy decisions on how digital payment technologies can be integrated with Pakistan's banking and foreign-exchange systems.