Pakistan’s annual remittance inflows could rise to $50 billion if cryptocurrencies are legalised and properly regulated, according to Malik Bostan, chairman of the Exchange Companies Association of Pakistan.
Speaking at a meeting of exchange company stakeholders on April 28, Bostan said remittances currently stand at around $38 billion. He argued that integrating digital assets into the formal financial system could unlock significant growth.
“Pakistan is entering a new phase of digital transformation and will achieve stronger economic progress through modern financial systems,” he said.
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Officials and industry representatives attended the session, including Zafar Paracha, Sheikh Sajid Hussain, Syed Zohaib and Bilal Bin Saqib, who leads the proposed Pakistan Virtual Assets Regulatory Authority.
Bostan said transaction costs could drop sharply under a regulated crypto framework. He estimated costs would fall from around 6 percent to nearly 1 percent, making transfers cheaper and faster for overseas Pakistanis.
Pakistan ranks among the world’s top remittance-receiving countries. Data from the State Bank of Pakistan shows inflows have remained a key support for foreign exchange reserves and economic stability.
Licensing Framework and Regulatory Plans
Authorities plan to introduce a phased licensing system for crypto-related activities. Bilal Bin Saqib said exchange companies will receive licenses under a proposed Crypto Council framework.
“In the first stage, firms will be allowed to open accounts after obtaining an NOC from the Crypto Council,” he said.
The broader framework aims to regulate exchanges, improve transparency and bring digital finance into the formal economy. Officials want to replace informal crypto usage with a monitored system that supports compliance and investor protection.
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Pakistan has seen growing interest in digital assets despite the absence of a formal regulatory structure. Analysts say a clear legal framework could attract investment and encourage innovation in fintech.
Bostan said exchange companies will integrate fully into the system in the second phase. He added that authorities are working to start transactions soon so the public can benefit from the digital framework.
Potential Economic Impact
Experts believe lower transaction costs could significantly increase remittance flows through official channels. Many overseas Pakistanis currently rely on informal methods due to high fees and limited access.
By reducing costs and improving convenience, the proposed system could redirect billions of dollars into the formal banking sector. This shift may strengthen foreign reserves and improve financial transparency.
Bostan expressed confidence in the outcome. He said once the system becomes fully operational, Pakistan’s remittances could reach $50 billion annually.
The move aligns with broader efforts to modernise the economy and adopt digital financial systems. Global institutions such as the World Bank have highlighted the role of fintech in improving financial inclusion and reducing transfer costs.
Analysts caution that implementation and regulatory clarity will determine success. Still, they see the initiative as a major step toward integrating Pakistan into the global digital economy.
