Long overshadowed by India’s fintech dominance in South Asia, Pakistan is finally beginning to carve out its own space, supported by rising investor confidence and a regulatory framework increasingly aligned with market needs, according to Forbes.
In the report published last week (November 27), titled ‘Fintech Heats Up in South Asia Beyond India’, the international media outlet reported that Pakistan’s fintech sector, which struggled for years, is now entering a phase of strong recovery. Venture funding jumped from a modest $10.4 million in 2019 to $150 million by 2022, positioning Pakistan as a potential hub for emerging digital finance markets in the region.
However, startup funding dropped sharply to $12.5 million in 2023 amid worsening global macroeconomic conditions. “Funding has rebounded over the past two years, roughly doubling to $26.3 million in 2024 and reaching $52.5 million in the first half of 2025. By late November, Pakistan’s 450 fintech companies had collectively raised $391 million in venture capital,” the report stated.
Forbes highlighted that the largest fintech investment in Pakistan this year was a $52 million pre-Series A round for supply-chain fintech Haball, with $47 million of the funding provided by Meezan Bank, the country’s largest Islamic bank.
“This transaction is notable not only for its scale but also because it marks one of the most significant collaborations to date between a traditional Pakistani lender and a digital newcomer,” the report said. The country’s fintech growth is also being supported by stronger regulatory measures.
“For example, the government-backed Pakistan Startup Fund offers equity-free grants to stimulate venture capital inflows. Pakistan has introduced a licensing and regulatory framework for digital banks, with five institutions, including easypaisa and Mashreq Bank, launching pilot operations by early 2025. These initiatives aim to increase adult financial inclusion from 64 per cent in 2023 to 75 per cent by 2028.”
Forbes also noted Pakistan’s rise in digital asset adoption, ranking third globally on Chainalysis’s Top Crypto Adoption 2025 index, behind only India and the US. The report described Pakistan as “undoubtedly a rising star in digital assets,” though it cautioned that this could still be considered a honeymoon phase for the sector.
Unlike regional neighbours such as Bangladesh and Nepal, which have banned cryptocurrencies, Pakistan has taken a more permissive approach. The country historically adopted a hands-off stance towards digital assets but is now developing a formal virtual asset regulatory framework.
Additionally, Pakistan has gained a seat at the table for global cryptocurrency governance after Bilal Bin Saqib, chairman of the Pakistan Virtual Asset Regulatory Authority (PVARA), joined the World Economic Forum’s Steering Committee on Digital Asset Regulations, the report added.
