Pakistan Courts Gulf Fintech Capital with Live Digital Banks and Web3 Framework
Pakistan's Finance Ministry is directing Gulf fintech capital toward its newly operational digital banks and instant payment rails. In an Islamabad briefing, government adviser Khurram Schehzad detailed the country’s digital financial infrastructure to a Middle East delegation led by Fintech Solutions Holding Chairman Dr. John Sfakianakis.
The pitch centers on a retail payment sector that has shifted fundamentally over the past year. In the second quarter of FY2025-26, digital channels processed 92% of retail payments, totaling 3.1 billion transactions. The State Bank of Pakistan’s Raast instant payment system provides the interoperable backbone for this volume, allowing banks and fintech applications to clear transactions in real time.
Pakistan recently licensed three digital retail banks, which are now fully operational: easypaisa Bank Limited, Mashreq Bank Pakistan Limited, and Raqami Islamic Digital Bank Limited. Easypaisa currently holds 59 million registered users. In 2025, it processed 4.5 billion transactions valued at PKR 15 trillion, representing approximately 13% of the national GDP.
Mashreq’s entry provides a direct channel for Gulf investors. The UAE-based bank obtained a Pakistani digital banking license and launched operations, moving beyond exploratory phases to commit capital directly to the local market.
These digital platforms are driving national banking metrics. Pakistan’s financial inclusion rate grew from 47% in 2018 to 67% in 2025. The government expects these digital banks to absorb the remaining unbanked population by offering instant account openings and app-based credit access.
Moving beyond traditional banking, the Finance Ministry confirmed it is drafting a regulatory framework for blockchain, Web3, and virtual assets. This marks a departure from past caution. Officials are now engaging with global crypto platforms, aligning Pakistan's policy trajectory with regulators in the UAE, Bahrain, and Saudi Arabia.
The infrastructure expansion forms the core of the Cashless Pakistan initiative. The government aims to increase digital payment adoption, build public digital rails, and digitize state transactions to formalize the broader economy.