The State Bank of Pakistan (SBP) is exploring the potential introduction of a digital currency to enhance the efficiency and affordability of money transfers for the millions of Pakistanis living abroad. This initiative is part of a broader government effort aimed at boosting remittances, which are vital for the country’s economy.
SBP Deputy Governor Salimullah recently addressed the media in Karachi, stating that the central bank is currently assessing the need for a digital currency and is in the evaluation phase of this process. Salimullah highlighted that the introduction of a digital currency would be a significant step towards modernizing financial transactions and improving the remittance process.
The proposed digital currency system is designed to address the challenges faced by approximately 60 million Pakistanis residing overseas. By enabling instant money transfers, this new system promises to make remittances both more efficient and cost-effective. Currently, transferring money internationally can be costly and time-consuming, which impacts the overall effectiveness of remittances.
With the digital currency, Pakistani expatriates will benefit from reduced transaction fees and faster transfer times. This would not only streamline the process but also lower the costs associated with sending money home, making it a more attractive option for those contributing to the Pakistani economy through remittances.
Overall, the introduction of a digital currency by the SBP represents a strategic move to enhance the financial infrastructure and provide a more efficient means for Pakistanis abroad to support their families back home. The central bank’s ongoing evaluation will determine the feasibility and implementation timeline for this promising development.
