From India’s Shadow to Emerging Regional Leader, Country’s Funding Rebounds and Crypto Frameworks Grow
“Pakistan is undoubtedly a rising star in the digital assets space, although it 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 reported on the current fintech landscape in Pakistan. Fintech’s center of gravity in South Asia may finally be shifting, and Pakistan is emerging as the region’s unexpected powerhouse. For years, India’s dominance has kept neighboring fintech ecosystems in its shadow. Pakistan, Bangladesh and Nepal have lagged behind, slowly adopting digital finance and attracting limited investor interest.
Read: Digital transformation shapes Pakistan’s banking horizon
Over the past three years, this map has started to change. Pakistan is accelerating fastest, buoyed by regulatory support, a recovering investment pipeline and early moves into digital assets, a space in which its regional peers remain cautious.
Funding increased from $10.4 million in 2019 to $150 million in 2022 before global macroeconomic pressures derailed investor confidence. In 2023, rising interest rates and the global withdrawal of high-growth technologies have driven investments down to $12.5 million.
The rebound was strong. Funding doubled to US$26.3 million in 2024 and reached US$52.5 million in the first half of 2025. By the end of November, Pakistan’s fintech ecosystem had secured US$391 million in total venture capital and included nearly 450 companies.
The biggest deal of 2025 was Haball’s $52 million 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 entrants and are instead choosing to collaborate with them.
Regulation has evolved alongside investment. The Pakistan Startup Fund offers equity-free grants to attract venture capital, while the State Bank has introduced a comprehensive licensing framework for digital banks. Five digital banks, including Easypaisa and Mashreq Bank, began pilot operations in early 2025. These measures aim to increase adult financial inclusion from 64% in 2023 to 75% by 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 only as social protection, but also as a way to formalize the economy and support long-term growth.
Pakistan is also ahead of its neighbors when it comes to digital assets. Bangladesh and Nepal have declared cryptocurrencies illegal, while Pakistan has avoided a total ban. In previous years, this created a regulatory gray area, but this is changing. Work on a formal virtual assets framework has begun, signaling a shift from passive tolerance to structured monitoring.
Pakistan is becoming the most assertive fintech player in South Asia. Unlike Bangladesh and Nepal, which have both banned cryptocurrencies, Pakistan has avoided a blanket ban and is now moving towards a formal virtual asset framework. The move from a regulatory gray zone to structured surveillance marks a major strategic turning point.
Bangladesh and Nepal offer a stark contrast. In Bangladesh, between 40 and 50% of the population remains unbanked and the government is targeting 75% digital transactions by 2027, but crypto remains banned. Nepal’s fintech market is smaller, with mobile banking penetration of 73% and digital wallets of 64%, and it also maintains a strict ban on crypto activities.
Learn more: SBP invites fintechs to join sandbox pilot
Meanwhile, Pakistan is gaining influence in global crypto governance. Bilal Bin Saqib, Senior Advisor to the Minister of Finance at the Pakistan Crypto Council, has joined the World Economic Forum’s steering committee on digital asset regulation. Global investors are responding. Andreessen Horowitz recently led a $12.9 million fundraising 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 combines financing revival, regulatory agility and openness to digital assets. This combination gives it a head start in shaping the next phase of fintech growth in South Asia.
South Asia’s fintech landscape is no longer defined solely by India. Pakistan has emerged as the most assertive player, combining a rebound in financing, strong bank-fintech partnerships, digital banking deployment and a growing role in global digital asset governance.
