Pakistan, Hong Kong explore cooperation on digital bonds, tokenised capital

Pakistan and Hong Kong are discussing potential collaboration in the areas of digital bond issuance and tokenised capital markets, with Islamabad aiming to modernise its financial infrastructure and increase access to international funding. Bilal bin Saqib, Minister of State and chairman of Pakistan's Virtual Assets Regulatory Authority (PVARA), engaged in talks with Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong's Special Administrative Region Government, focusing on digital bonds, tokenisation, and regulatory advancements, as reported by the PVARA.

The discussions also touched on how tokenisation could enhance capital formation and streamline financial market operations, according to the PVARA. "Hong Kong's expertise provides valuable insights as Pakistan builds its next-generation financial system," stated PVARA. In a social media post, Saqib emphasized that for emerging economies like Pakistan, "tokenisation is not merely a technological issue; it is a capital formation story."

He explained that making Pakistani assets more accessible, tradable, and storable for global investors could expand the country's available capital pool. Following the meeting, Saqib mentioned that Pakistan is investigating the use of regulated stablecoins for remittances, which could save the nation approximately $400 million annually.

The minister also advocated for exploring additional applications for virtual assets, such as digital exports, trade finance, and tokenised financial instruments, to stimulate Pakistan's economic growth.