Pakistan mulls CBDC for women amid concerns of financial abuse

Pakistan’s finance minister says the country is mulling a central bank digital currency to empower women and tackle financial abuse.

Pakistan is weighing in on launching a central bank digital currency (CBDC) to modernize financial transactions and provide greater accessibility and security, particularly for marginalized groups such as women who face challenges with traditional cash-based systems.

Speaking at the World Economic Forum (WEF), Pakistan’s finance minister Muhammad Aurangzeb said the country is considering moving towards the launch of CBDC, addressing concerns of cash being appropriated by male family members, according to a report from Samaa TV, one of the largest news channels in Pakistan.

“The government is providing cash to the poor women of Pakistan. Women say that the male family members take cash from them. The women want to get the cash through the digital wallet.”

Muhammad Aurangzeb

Aurangzeb’s remarks come in the wake of his recent expressions of confidence in government initiatives aimed at economic improvement. He highlighted increased tax collection and a reduction in the current account deficit as indicators of progress.

Pakistan has been thinking about creating its own digital money for a while now, exploring various use cases for CBDC. In July 2023, the State Bank of Pakistan announced plans to expedite the development of a digital Pakistani rupee, with expectations of its launch by 2025. However, no specific timeline has been revealed so far.