Pakistan is set to take a major step toward digital finance, as the State Bank of Pakistan (SBP) partners with Japanese blockchain technology company Soramitsu to launch a pilot program for a central bank digital currency (CBDC) later this year. The initiative was first reported by Nikkei Asia.
The pilot will run on Soramitsu’s CBDC platform and is being funded by Japan’s Ministry of Economy, Trade and Industry under its Global South Future-Oriented Co-Creation Project. The aim is to explore how a digital version of the Pakistani rupee could improve payment systems, financial inclusion, and overall economic efficiency.
SBP Governor Jameel Ahmad, speaking last month, confirmed that the central bank is “building up our capacity” for launching a digital currency. According to economic experts, this move could be particularly impactful in Pakistan, where large segments of the population remain excluded from the banking system.
Masato Toriya, an associate professor at Tokyo University of Foreign Studies, highlighted that much of rural Pakistan still relies heavily on cash, with low rates of bank account ownership. The introduction of a CBDC, he said, could help reduce the high costs and logistical challenges of distributing cash, especially in remote areas.
Soramitsu brings significant experience to the table, having implemented Cambodia’s Bakong digital currency in partnership with the National Bank of Cambodia. The company has also conducted CBDC 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 currency system, ahead of finalizing their own collaboration.
With a population of 250 million and a GDP of about $400 billion—eight times larger than Cambodia’s—Pakistan represents Soramitsu’s most ambitious CBDC undertaking so far. The scale of the project could provide valuable lessons for other emerging economies exploring similar technologies.
The initiative comes at a time when Pakistan is deepening its economic engagement with China through the China-Pakistan Economic Corridor (CPEC), a key part of Beijing’s Belt and Road Initiative. While China has already trialed its own digital yuan, Pakistan’s CBDC could help the country maintain financial autonomy while benefiting from regional economic cooperation.
One of the standout features of Soramitsu’s approach is its work on offline CBDC capabilities. This technology would allow transactions to be completed via smartphones without internet access—an important innovation for Pakistan, where internet coverage and electricity supply can be unreliable. Such a feature could position Pakistan’s CBDC as a model for other developing economies facing similar infrastructure challenges.
The upcoming pilot is expected to test not only the technical aspects of a digital rupee but also its potential to transform Pakistan’s financial landscape, bringing millions into the formal economy and reducing dependency on cash. If successful, it could pave the way for a full-scale national rollout in the coming years.
