Pakistan’s fintech sector is entering a new era of growth, shifting from years under India’s shadow to becoming one of South Asia’s most dynamic financial-technology markets. According to a recent Forbes analysis, Pakistan is now viewed as a rising force in digital finance and digital assets — even as it prepares for its first real test in the volatile crypto space.
After years of slow progress across South Asia, Pakistan has accelerated fastest since 2022, driven by regulatory support, renewed investor interest and early moves into digital assets. Venture funding rose sharply from US$10.4 million in 2019 to US$150m in 2022, before global economic pressures reduced investment to US$12.5m in 2023. The recovery has since been swift: funding doubled to US$26.3m in 2024 and reached US$52.5m in the first half of 2025. By late November, the ecosystem had secured US$391m in total venture capital and grown to nearly 450 fintechs.
The standout deal of 2025 was Haball’s US$52m pre-Series A, led largely by the country’s largest Islamic bank, Meezan Bank — a sign of how quickly traditional banks are shifting from resisting fintechs to partnering with them.
Pakistan’s regulatory evolution has matched this investment momentum. The Pakistan Startup Fund now offers equity-free grants to attract risk capital, while the State Bank has created a full digital-bank licensing framework. Five digital banks — including Easypaisa and Mashreq Bank — began pilot operations in early 2025. The goal: raise adult financial inclusion from 64% (2023) to 75% by 2028, and formalise an economy long dominated by informality.
In digital assets, Pakistan has taken a notably different path from its neighbours. While Bangladesh and Nepal have banned cryptocurrencies outright, Pakistan avoided a blanket prohibition. It is now drafting a formal virtual asset regulatory framework, moving from regulatory ambiguity toward structured oversight. This shift, along with global engagement, is strengthening Pakistan’s position in digital-asset governance.
One example: Bilal Bin Saqib, Chief Advisor to the Finance Minister at the Pakistan Crypto Council, now serves on the World Economic Forum Steering Committee on Digital Asset Regulations — giving Pakistan a voice in shaping global crypto policy. Investor confidence is following: Andreessen Horowitz recently led a US$12.9m round for ZAR, a Pakistani stablecoin startup developing a dollar-backed digital currency for mass use via retail agents and kiosks.
By pairing a funding revival with regulatory agility and openness to digital assets, Pakistan has positioned itself as South Asia’s most assertive fintech player. Unlike Bangladesh and Nepal — where crypto remains banned and inclusion levels are uneven — Pakistan is shaping a forward-looking model that blends fintech innovation, traditional-bank collaboration and global engagement.
As 2025 closes, the region’s fintech narrative is no longer defined by India alone. Pakistan’s mix of investment momentum, digital-bank rollout and leadership in digital-asset policy has put it at the centre of South Asia’s next fintech chapter.
