State Bank of Pakistan launches second Regulatory Sandbox cohort

The State Bank of Pakistan (SBP) has launched the second cohort of its Regulatory Sandbox, inviting individuals and firms to test innovative financial solutions within a controlled regulatory environment. The initiative aims to support responsible technological innovation in Pakistan’s digital financial services sector while allowing the central bank to evaluate the regulatory implications of emerging technologies before broader market implementation.

The second cohort focuses on four specific themes: artificial intelligence in financial services, innovations in payments, technology-enabled inward remittances, and an open category for next-generation financial services. This program is part of the SBP Vision 2028 strategy to foster digital innovation while maintaining consumer protection and financial stability. Applications for participation are open until November 30, 2026.