ISLAMABAD — Pakistan is preparing to take a landmark step in its journey toward digital finance, with the State Bank of Pakistan (SBP) set to launch the country’s first central bank digital currency (CBDC) pilot later this year. The initiative is being developed in collaboration with Japanese blockchain company Soramitsu, according to a report by Nikkei Asia.
Funded under Japan’s Ministry of Economy, Trade and Industry’s Global South Future-Oriented Co-Creation Project, the pilot will operate on Soramitsu’s CBDC platform. Officials say the project aims to test how a digital version of the Pakistani rupee could enhance payment systems, expand financial inclusion, and increase efficiency across the economy.
SBP Governor Jameel Ahmad recently confirmed that the central bank is “building up our capacity” for a digital currency rollout. Economic analysts believe the move could have far-reaching effects in Pakistan, where large portions of the population remain outside the formal banking system.
Masato Toriya, associate professor at Tokyo University of Foreign Studies, noted that rural Pakistan still relies heavily on cash, with bank account penetration remaining low. A CBDC, he said, could significantly cut the cost and complexity of moving money, especially to remote areas where physical cash distribution is slow and expensive.
Soramitsu is no stranger to such undertakings. The company helped launch Cambodia’s Bakong digital currency with the National Bank of Cambodia and has conducted similar pilots in Papua New Guinea and the Solomon Islands. In January, representatives from SBP and Soramitsu visited Cambodia’s central bank to study its digital system before finalizing their partnership.
With a population of 250 million and a GDP approaching $400 billion—around eight times the size of Cambodia’s economy Pakistan represents Soramitsu’s largest and most challenging CBDC project to date. Observers say its scale could make it a model for other emerging economies considering similar technology.
The project also coincides with Pakistan’s deepening economic engagement with China through the China-Pakistan Economic Corridor (CPEC), a flagship component of Beijing’s Belt and Road Initiative. While China has already tested its own digital yuan, analysts suggest Pakistan’s CBDC could strengthen financial sovereignty while benefiting from regional economic ties.
A notable element of Soramitsu’s work is its focus on offline CBDC transactions allowing payments via smartphones even without internet access. In a country where network coverage and electricity supply can be unreliable, this feature could be a game-changer and position Pakistan’s digital rupee as a blueprint for nations facing similar infrastructure hurdles.
The pilot will not only examine the technical readiness of a digital rupee but also assess its real-world potential to draw millions into the formal economy, reduce reliance on cash, and modernize Pakistan’s financial landscape. If successful, it could set the stage for a nationwide rollout in the coming years.
