From India’s Shadow to Emerging Regional Leader, Country’s Funding Recovers and Crypto Frameworks Develop
“Pakistan is undoubtedly a rising star in digital assets, even if this remains 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 the current fintech landscape in Pakistan. The center of gravity of fintech in South Asia may finally be shifting, and Pakistan is emerging as the region’s unexpected powerhouse. For years, India’s dominance kept it in the shadow of neighboring fintech ecosystems. Pakistan, Bangladesh and Nepal lagged behind, slowly adopting digital finance and attracting limited investor interest.
Read: Digital transformation shapes Pakistan’s banking horizon
In the last three years, that map has begun to change. Pakistan is accelerating the fastest, backed by regulatory support, a recovering investment portfolio and early moves into digital assets, a space where its 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 saw the investment drop to $12.5 million.
The rebound has been strong. Funding doubled to $26.3 million in 2024 and reached $52.5 million in the first half of 2025. By the end of November, Pakistan’s fintech ecosystem had raised $391 million in total venture capital and included nearly 450 companies.
The most notable deal of 2025 was Haball’s $52 million pre-Series A round. Meezan Bank, the country’s largest Islamic lender, contributed $47 million, a sign that traditional banks are no longer resisting digital entrants and are instead choosing to collaborate with them.
Regulation has evolved along with investment. The Pakistan Startup Fund offers equity-free grants to attract venture capital, while the State Bank has introduced a comprehensive digital banking licensing framework. Five digital banks, including Easypaisa and Mashreq Bank, began pilot operations in early 2025. These measures aim to raise 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 widespread.” Pakistan is positioning financial inclusion not simply as social welfare but as a way to formalize the economy and support long-term growth.
Pakistan is also moving ahead of its neighbors in digital assets. Bangladesh and Nepal have made cryptocurrencies illegal, while Pakistan has avoided an outright ban. In previous years this created a regulatory gray area, but now the situation is changing. Work has begun on a formal virtual asset framework, signaling a move from passive tolerance to structured oversight.
Pakistan is emerging as the most assertive fintech player in South Asia. Unlike Bangladesh and Nepal, which have banned cryptocurrencies, Pakistan avoided a blanket ban and is now moving towards a formal virtual assets framework. The move from a regulatory gray area to structured supervision marks an important strategic shift.
Bangladesh and Nepal offer a stark contrast. In Bangladesh, between 40% and 50% of the population remains unbanked and the government aims for 75% of transactions to be digital by 2027, but cryptocurrencies remain banned. Nepal’s fintech market is smaller, with mobile banking penetration at 73% and digital wallet penetration at 64%, and also maintains a strict ban on crypto activity.
Read more: SBP invites fintechs to join the sandbox pilot
Meanwhile, Pakistan is gaining influence in global crypto governance. Bilal Bin Saqib, Senior 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 are responding. 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 combines a financing revival with regulatory agility and openness to digital assets. This combination gives it an advantage 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, a rollout of digital banks, and a growing role in global digital asset governance.
