LAHORE:Pakistan must move from being a consumer of global financial technologies to becoming an active contributor to the infrastructure, standards and innovation that will define the future of finance, Minister of State and Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal Bin Saqib, said at the PBA-LUMS Dialogue on Digital Assets and the Future of Banking.

Speaking during a fireside conversation titled 'Partner, Competitor, or Bystander?' with Zafar Masud, Chairman of the Pakistan Banks' Association and President and CEO of Bank of Punjab, Saqib urged the banking industry to recognise the scale of the transformation taking place across global finance. 'Bitcoin was the front door. The bigger transformation is the technology behind it, which is changing how value moves, how financial assets are held and how capital reaches businesses.'

Highlighting developments at JPMorgan, HSBC, Standard Chartered and other international financial institutions, he said digital assets were increasingly being integrated into institutional payments, treasury management and capital markets. 'The real opportunity is not giving Pakistanis more assets to trade. It is giving more Pakistanis the opportunity to build assets, businesses and wealth.'

Saqib drew attention to the historical development of international banking and payment infrastructure, noting that Pakistan largely became a user of major global financial networks established elsewhere.

He said the emergence of digital assets, tokenisation and artificial intelligence presents Pakistan with an opportunity to participate earlier in the development of new financial capabilities. 'When the world's correspondent banking arrangements and major payment networks were taking shape, Pakistan was largely a user of systems designed elsewhere, rather than an architect of those systems.' 'Today, the rules of finance are evolving again. The question before Pakistan is simple: do we want to keep renting our future, or do we want to help build and own it?'

He emphasised that technological independence does not require Pakistan to replicate every international network. 'Owning our future does not mean building everything ourselves. It means developing the talent, institutions and technological capabilities to shape the systems we depend upon.'

Discussing Pakistan's $41.6 billion annual remittance flows, Saqib highlighted the growing importance of reducing the costs associated with international transfers.

Saqib said the changing economics have made the search for more efficient financial infrastructure increasingly important for the banking industry. He identified supervised, bank-led payment arrangements involving major Gulf remittance corridors as an opportunity worthy of examination, subject to regulatory coordination and appropriate safeguards. 'The objective is not to move tokens faster. It is to ensure more of an overseas Pakistani's hard-earned money reaches the family it was intended for.'

Saqib encouraged bank presidents to establish deeper partnerships with universities, researchers, engineers and emerging technology companies. 'The banks of tomorrow should not simply be customers of innovation. They should become launchpads for innovators.'

He suggested that banks could provide Pakistani founders with access to real business problems, technical expertise, mentorship and opportunities to test and demonstrate useful solutions within appropriate safeguards. 'Imagine if every major Pakistani bank helped incubate the next generation of fintech builders. We would not simply be importing technology. We would be building companies capable of exporting it.'

Saqib also said that artificial intelligence is transforming how financial services are developed, delivered and secured. He pointed to AI's growing applications in fraud detection, risk management, customer service, software engineering and operational efficiency. 'AI is changing what a small team can build. New financial infrastructure is changing how that team can access customers, capital and global markets. Pakistan must bring these opportunities together.'

He urged banking institutions to invest in AI capabilities, develop their existing workforce and strengthen collaboration with universities such as LUMS. 'The greatest opportunity is not simply to use better technology. It is to produce the people who can build that technology.'

He also emphasised the importance of coordination between PVARA, the State Bank and other relevant regulatory institutions within their respective statutory mandates. He said the adoption of new technologies must be accompanied by effective supervision, cybersecurity safeguards, consumer protection and institutional accountability.

Looking ahead, Saqib said the next phase of Pakistan's digital asset journey must be judged by real economic outcomes. 'Success is not how many events we hold, how many MoUs we sign or how many announcements we make. Success is how many Pakistani businesses grow, how many financial problems we solve and how much capability we build within our own country.'

Addressing young professionals and students at LUMS, Saqib reflected on his involvement in digital assets since 2016 and encouraged Pakistan's next generation to develop globally competitive technologies and companies. 'Why shouldn't the next globally significant financial technology company come from Lahore, Karachi or Islamabad? Why shouldn't it begin with a student sitting in this room, supported by a Pakistani bank and employing Pakistani engineers?'

He concluded with a call for Pakistan to participate actively in shaping the technologies that will influence its economic future. 'We have spent decades learning to operate within systems built by others. This generation has the opportunity to help build the systems of tomorrow.' 'I don't want Pakistan to simply consume the future of finance. I want Pakistanis to help build it.'