Pakistan seeks Central Asia digital corridor routed through its Internet gateways

Pakistani ministers participate at the 24th Central Asia Regional Economic Cooperation (CAREC) Ministerial Conference in Bishkek on November 20, 2025. (@MIIT_Uz/X)
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Updated 21 November 2025
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Pakistan seeks Central Asia digital corridor routed through its Internet gateways

  • Pakistan urges joint working group with ADB and regional states to advance digital corridor plan
  • Islamabad cites new border, transit, payment reforms as foundation for deeper digital integration

ISLAMABAD: Pakistan on Thursday called for accelerated work on a proposed digital corridor that would route secure, high-speed connectivity for Central Asia through its Internet gateways, urging member states and the Asian Development Bank (ADB) to launch a joint working group to begin feasibility, design and financing discussions.

The initiative comes as Central Asian economies look for reliable digital pathways to global networks amid shifting regional trade patterns, strained border dynamics and a broader push to modernize transit systems. Pakistan says recent reforms in border management, digital transit tools and payment infrastructure have strengthened its position as a southern connectivity hub for the region.

Pakistan outlined its position on the matter at the 24th Central Asia Regional Economic Cooperation (CAREC) Ministerial Conference in Bishkek, where member states reviewed digital integration and regional connectivity plans. 

Representing Pakistan, Federal Minister for Communications Abdul Aleem Khan said the South Asian nation recognized the strategic importance of the proposed corridor and was ready to advance it with partners.

“Pakistan is fully open to close collaboration with ADB and interested member countries on advancing the feasibility, design and financing of this initiative,” the minister was quoted as saying in an official statement. “I encourage the early establishment of a joint working group to steer the process under CAREC’s digital agenda.”

He pointed to reforms Pakistan has undertaken to modernize trade and transit systems, including the new Land Port Authority Act, which centralizes border management under one body; the expansion of the TIR/eTIR system, an international regime that allows sealed, paperless transit of goods across borders; the rollout of electronic certificates through the Pakistan Single Window to simplify customs procedures; and the growing use of RAAST, Pakistan’s real-time digital payment network that supports faster, more secure commercial transactions. 

Together, Khan said, these measures strengthen Pakistan’s readiness for deeper regional digital integration.

He also welcomed the Asian Development Bank’s new Climate and Sustainability Project Preparatory Fund (CSPPF), calling for climate financing models that reflect differing levels of vulnerability across the region and prioritize adaptation. The facility was created to help CAREC member countries prepare, design and structure climate-related projects.

Pakistan, one of the world’s most climate-exposed countries, has urged concessional resources to help operationalize the climate fund.


Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

Updated 05 December 2025
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Pakistan, global crypto exchange discuss modernizing digital payments, creating job prospects 

  • Pakistani officials, Binance team discuss coordination between Islamabad, local banks and global exchanges
  • Pakistan has attempted to tap into growing crypto market to curb illicit transactions, improve oversight

ISLAMABAD: Pakistan’s finance officials and the team of a global cryptocurrency exchange on Friday held discussions aimed at modernizing the country’s digital payments system and building local talent pipelines to meet rising demand for blockchain and Web3 skills, the finance ministry said.

The development took place during a high-level meeting between Finance Minister Muhammad Aurangzeb, Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman Bilal bin Saqib, domestic bank presidents and a Binance team led by Global CEO Richard Teng. The meeting was held to advance work on Pakistan’s National Digital Asset Framework, a regulatory setup to govern Pakistan’s digital assets.

Pakistan has been moving to regulate its fast-growing crypto and digital assets market by bringing virtual asset service providers (VASPs) under a formal licensing regime. Officials say the push is aimed at curbing illicit transactions, improving oversight, and encouraging innovation in blockchain-based financial services.

“Participants reviewed opportunities to modernize Pakistan’s digital payments landscape, noting that blockchain-based systems could significantly reduce costs from the country’s $38 billion annual remittance flows,” the finance ministry said in a statement. 

“Discussions also emphasized building local talent pipelines to meet rising global demand for blockchain and Web3 skills, creating high-value employment prospects for Pakistani youth.”

Blockchain is a type of digital database that is shared, transparent and tamper-resistant. Instead of being stored on one computer, the data is kept on a distributed network of computers, making it very hard to alter or hack.

Web3 refers to the next generation of the Internet built using blockchain, focusing on giving users more control over their data, identity and digital assets rather than big tech companies controlling it.

Participants of the meeting also discussed sovereign debt tokenization, which is the process of converting a country’s debt such as government bonds, into digital tokens on a blockchain, the ministry said. 

Aurangzeb called for close coordination between the government, domestic banks and global exchanges to modernize Pakistan’s payment landscape.

Participants of the meeting also discussed considering a “time-bound amnesty” to encourage users to move assets onto regulated platforms, stressing the need for stronger verifications and a risk-mitigation system.

Pakistan has attempted in recent months to tap into the country’s growing crypto market, crack down on money laundering and terror financing, and promote responsible innovation — a move analysts say could bring an estimated $25 billion in virtual assets into the tax net.

In September, Islamabad invited international crypto exchanges and other VASPs to apply for licenses to operate in the country, a step aimed at formalizing and regulating its fast-growing digital market.