From India’s shadow to budding regional leader, country’s funding returns, crypto framework evolves
“Pakistan is undoubtedly a rising star in digital assets, although this is still a ‘honeymoon’ phase for the South Asian country in a notoriously volatile fintech segment. How Pakistan responds to its first major crypto shock will ultimately reveal the depth of its commitment.”
This is what Forbes has reported on Pakistan’s current fintech landscape. Fintech’s center of gravity in South Asia may finally be shifting, with Pakistan emerging as the region’s unexpected powerhouse. For years, India’s dominance kept nearby fintech ecosystems in its shadow. Pakistan, Bangladesh and Nepal lagged behind, slowly adopting digital finance and attracting limited investor interest.
Read: Digital transformation is shaping Pakistan’s banking landscape
Over the past three years, that map has begun to change. Pakistan is accelerating fastest, supported by regulatory backing, a recovery in the investment pipeline and early moves in digital assets, an area where regional peers remain cautious.
Funding rose from $10.4 million in 2019 to $150 million in 2022, before global macroeconomic pressures derailed investor confidence. In 2023, rising interest rates and a global retreat from high-growth technology pushed investments down to DKK 12.5 million. USD.
The return has been strong. The financing was doubled to DKK 26.3 million. USD in 2024 and reached 52.5 million USD in the first half of 2025. At the end of November, Pakistan’s fintech ecosystem had secured 391 million USD in total venture capital and included close to 450 companies.
The standout deal in 2025 was Haball’s USD 52m pre-Series A round. Meezan Bank, the country’s largest Islamic lender, provided $47 million, a sign that traditional banks are no longer resisting digital players and are instead choosing to partner with them.
Regulation has developed alongside investment. The Pakistan Startup Fund offers equity-free grants to attract venture capital, while the state bank has introduced a full digital banking licensing framework. Five digital banks, including Easypaisa and Mashreq Bank, started pilot operations in early 2025. These measures aim to lift adult financial inclusion from 64% in 2023 to 75% in 2028.
As SBP Governor Jameel Ahmad said in March 2024: “When more people have access to financial services, it creates a broad base of consumers, savers and entrepreneurs … especially in countries like Pakistan where the informal economy remains prevalent.” Pakistan positions financial inclusion not simply as social welfare, but as a way to formalize the economy and support long-term growth.
Pakistan is also ahead of its neighbors in digital assets. Bangladesh and Nepal have declared cryptocurrencies illegal, while Pakistan has avoided a complete ban. In previous years this created a regulatory gray area, but the situation is now changing. Work on a formal virtual asset framework has begun, signaling a shift from passive tolerance to structured oversight.
Pakistan is emerging as the most assertive fintech player in South Asia. Unlike Bangladesh and Nepal, which have both banned cryptocurrencies, Pakistan avoided a blanket ban and is now moving towards a formal virtual asset framework. The shift from a legislative gray zone to structured supervision marks a major strategic shift.
Bangladesh and Nepal offer a sharp contrast. In Bangladesh, between 40% and 50% of the population remains unbanked and the government aims for 75% digital transactions by 2027, but crypto is still banned. Nepal’s fintech market is smaller, with mobile banking penetration at 73% and digital wallets at 64%, and it also maintains a strict ban on crypto activity.
Read more: SBP invites fintechs to participate in sandbox pilot
Pakistan, meanwhile, is gaining influence in global crypto governance. Bilal Bin Saqib, Chief Advisor to the Finance Minister of Pakistan’s Crypto Council, has joined the World Economic Forum’s Steering Committee on Digital Asset Regulations. Global investors react. Andreessen Horowitz recently led a $12.9 million round for ZAR, a Pakistani startup developing a dollar-backed stablecoin designed for mass use through retail agents and kiosks.
Pakistan is the only market in the region that pairs a revival of finance with regulatory flexibility and openness to digital assets. This combination gives it a head start in shaping the next phase of South Asia’s fintech growth.
South Asia’s fintech landscape is no longer defined by India alone. Pakistan has emerged as the most assertive player, combining a funding downturn, strong bank-fintech partnerships, a digital banking rollout and a growing role in global digital asset management.
