Khurram Jaffrani
KARACHI: In a bold stride towards economic modernisation, Pakistan under the leadership of Prime Minister Shehbaz Sharif has embarked on a transformative journey into the digital finance frontier. With strategic foresight and an eye on future generations, the government has now formalised a historic partnership with World Liberty Financial (WLF) – a decentralised finance (DeFi) platform strongly backed by US President Donald Trump and his family. This milestone could reshape Pakistan’s economic and financial landscape for decades to come.
The landmark signing of a Letter of Intent (LoI) between World Liberty Financial and the Pakistan Crypto Council (PCC) was announced this weekend by the Ministry of Finance. The WLF delegation – including Zachary Folkman, Zachary Witkoff (son of US diplomat Steve Witkoff), and Chase Herro – met key Pakistani leadership figures in Islamabad, including Prime Minister Shehbaz Sharif, Chief of Army Staff General AsimMunir, Deputy Prime Minister Ishaq Dar, Minister of Information AttaullahTarar, and Defence Minister Khawaja Asif.
At the heart of this partnership is a shared ambition: to position Pakistan at the forefront of blockchain innovation, stablecoin adoption, and the broader DeFi revolution. Prime Minister Sharif and his economic team have demonstrated a determined commitment to embracing digital transformation, fully recognising that the global economy is rapidly pivoting towards decentralised and blockchain-driven systems.
World Liberty Financial, whose Trump family backing underscores its international significance, has been a leading voice in the DeFi space. With a 60% ownership stake controlled by the Trump family, and active endorsements from Donald Trump himself on platforms such as X (formerly Twitter), WLF is seen as a key mover in the future of decentralised finance.
During their meetings in Pakistan, WLF and PCC outlined ambitious plans: regulatory sandboxes for blockchain product testing, expanding stablecoin solutions for remittances and trade, tokenising real-world assets such as real estate, and offering strategic advice on regulatory trends globally. Crucially, the partnership also includes exploring the use of Pakistan’s surplus electricity to power Bitcoin mining farms and AI data centres – an unprecedented move for the region.
Deputy Prime Minister Ishaq Dar, an early champion of digital finance, described the agreement as “the gateway to a new era of economic empowerment for Pakistan’s youth and tech sectors.”
Changpeng Zhao, founder of Binance and one of the world’s foremost figures in blockchain innovation, has also been appointed Strategic Adviser to the Pakistan Crypto Council. Despite his recent legal hurdles in the United States, Zhao’s expertise is seen as invaluable for Pakistan’s ambitions. His advisory role extends across blockchain infrastructure development, regulatory frameworks, and youth education in emerging technologies.
In an ingenious strategic pivot, Pakistan is planning to channel its growing energy surplus – fuelled by an aggressive solar power expansion – into powering digital infrastructure. Amidst widespread shifts to solar energy by businesses and households seeking to escape soaring tariffs, national grid consumption has dropped, creating an unexpected surplus.
Recognising this opportunity, the government is negotiating with international mining firms to allocate part of this surplus towards Bitcoin mining and AI computing centres. Such a move could unlock vast economic value, generate foreign investment, and create thousands of skilled jobs.
According to Bilal Bin Saqib, CEO of the Pakistan Crypto Council and a key adviser to the Finance Ministry, “Pakistan’s youth and its abundant, affordable energy create a perfect storm for blockchain-led growth.”
Tides are turning
Pakistan’s crypto journey has been anything but straightforward. Despite regulatory caution, the grassroots adoption of cryptocurrencies has surged. In 2020-21 alone, Pakistan witnessed $20 billion in crypto transactions – a staggering 711% year-on-year increase – and today ranks among the top 10 countries globally for crypto adoption.
Nevertheless, formal regulation remains patchy. The State Bank of Pakistan (SBP) has traditionally warned against the risks associated with crypto trading, citing concerns over volatility and illicit financing. Yet, under the Sharif government, the conversation has shifted dramatically. Policymakers are now exploring comprehensive legal frameworks that will allow cryptocurrencies to flourish under a structured and secure regime.
The Finance Ministry’s announcement emphasised that Pakistan is preparing to unveil comprehensive crypto legislation imminently – a move that would solidify its position as one of the world’s fastest-growing digital economies.
Minister of Information Attaullah Tarar hailed the collaboration as “a new beginning for Pakistan’s tech-savvy youth and entrepreneurs,” highlighting the vast investment opportunities now emerging in digital finance, blockchain, and AI technologies.
Financial inclusion
Beyond the headlines, blockchain holds the power to deliver transformational financial inclusion. With over 100 million Pakistanis still unbanked, digital currencies and stablecoins could bridge a colossal gap, offering citizens greater access to financial services without the need for traditional banking infrastructure.
Additionally, Pakistan’s $30 billion remittance economy stands to benefit immensely. Blockchain-powered remittance channels could slash transaction costs, speed up processing times, and offer much-needed transparency – ensuring that a greater share of hard-earned money reaches families directly.
Minister of State for IT and Telecommunications, Shaza Fatima Khawaja, rightly noted that “digital payments and decentralised finance can integrate millions into the formal economy, boosting growth and stability.”
Moreover, initiatives like the SBP’s RAAST instant payment system and Visa’s 2024 partnership with 1Link demonstrate Pakistan’s serious intent to build a robust digital financial ecosystem.
Road ahead
However, the path to a blockchain-led future is fraught with challenges. Regulatory clarity is vital to prevent financial misuse, money laundering, and terrorist financing. Without a dedicated regulatory authority for digital assets, the innovation wave could falter.
Pakistan must learn from global examples: Switzerland’s structured approach has turned it into a blockchain powerhouse, while El Salvador’s more volatile experiment with Bitcoin has shown the risks of unchecked enthusiasm.
To fully realise its digital potential, Pakistan needs to:
= Establish a dedicated digital assets regulatory authority.
= Launch widespread educational programmes for policymakers and businesses.
= Prioritiseblockchain applications in remittances, e-commerce, and identity verification.
= Foster public-private partnerships to drive investment and technology transfer.
Prime Minister Shehbaz Sharif encapsulated the vision succinctly:”Digital transformation is not a choice, it is a necessity. With the right safeguards and strategies, Pakistan can lead the next wave of global economic innovation.”
With the World Liberty Financial partnership, the Changpeng Zhao advisory role, and a government committed to financial innovation, Pakistan is poised at the threshold of a historic transformation.
The Shehbaz Sharif government’s proactive embrace of blockchain and digital finance could unlock unprecedented growth, empower millions, and turn Pakistan into a hub of the global Web3 economy.
The clock is ticking – but if momentum holds, Pakistan’s future will not be built with bricks and mortar alone, but with code, innovation, and digital ambition.
