SBP Invites Applications for First Cohort of Regulatory Sandbox to Foster Innovation

KARACHI:TheState Bank of Pakistan (SBP)has invited applications for the inaugural cohort of itsRegulatory Sandbox, a flagship initiative under Vision 2028 aimed at fast-tracking the country’s digital financial revolution. The central bank said the first phase of the sandbox will focus on three priority areas: Technology-enabled solutions for inward remittances Open banking Remote on-boarding of merchants These themes, according to SBP, are critical to expanding financial inclusion, enhancing efficiency, and aligning Pakistan’s financial sector with global digital trends. The sandbox will provide fintechs, technology firms, and financial institutions acontrolled testing environmentto trial innovative products and operational models, striking a balance between innovation, consumer protection, and financial stability. Insights gathered during the process will also help SBP refineregulatory frameworksin line with evolving technologies. Encouraging startups and institutions to seize the opportunity, the SBP emphasized that the initiative would play a key role instrengtheningPakistan’s fintechecosystemand accelerating its shift toward a more dynamic digital economy. Applications for the first cohort will be accepted fromAugust 25 to October 5, 2025, via email atregulatory.sandbox@sbp.org.pk. To guide prospective participants, SBP has also issuedRegulatory Sandbox Guidelines, available on its website:https://www.sbp.org.pk/DFS/rsb.html.