Qudsia Bano

Pakistan has announced a significant shift toward embracing digital innovation, with plans to establish a government-backed strategic bitcoin reserve and development zones focused on artificial intelligence.

The announcement was made by Bilal Bin Saqib, Special Assistant to the Prime Minister on Blockchain and Cryptocurrency, during the Bitcoin 2025 Conference held in Las Vegas. The strategy includes infrastructure for bitcoin mining, a Financial Action Task Force (FATF)-compliant regulatory framework, and a sovereign bitcoin reserve managed through a national wallet.

While the announcement has sparked excitement among digital economy proponents, experts have urged caution, citing regulatory and economic risks associated with cryptocurrencies. Umar Khalid, a fintech consultant and lecturer at a private university in Islamabad, warned that the lack of clear regulatory guidelines and public awareness could expose investors to fraud and market volatility.

“Crypto is highly speculative and still not well understood by the average citizen. Before encouraging mass adoption, the government should ensure investor education and introduce strong consumer protection laws,” he said. Similarly, Rabia Ahmed, a research associate at a digital literacy programme run by TCF, stressed the need for a comprehensive risk management strategy.

“While the creation of a national bitcoin reserve sounds ambitious, Pakistan must tread carefully. The price volatility of bitcoin can have serious implications for macroeconomic stability if it is not backed by robust governance and oversight,” she stated. The plan to create AI zones has also drawn attention, with policymakers seeing it as a pathway to boosting technological innovation, improving governance, and creating jobs.

However, experts suggest that successful implementation will require long-term investment in infrastructure, skills development, and collaboration with the private sector. As Pakistan positions itself on the global tech map, analysts agree that innovation must be paired with caution. Establishing clear legal frameworks, implementing risk mitigation measures, and conducting public education campaigns will be vital to ensuring that these bold initiatives deliver sustainable and inclusive growth.

Credit: INP-WealthPk