The State Bank of Pakistan (SBP) has launched a Regulatory Sandbox initiative aimed at promoting inward remittances, encouraging innovation, and strengthening the country’s digital financial ecosystem as part of its Vision 2028 strategy.
In a circular issued on Monday, the central bank said the first cohort under the sandbox will focus on three priority areas: technology-enabled solutions for remittance inflows, open banking frameworks, and remote onboarding of merchants.
“The Regulatory Sandbox aims to encourage innovation within the financial sector while ensuring consumer protection and maintaining financial stability,” the SBP said.
The framework will allow selected participants to test products and business models in a controlled environment, enabling the regulator to assess risks and fine-tune policies in response to emerging technologies.
The SBP has invited applications from individuals and firms with innovative financial products or solutions that fall within the specified themes. Applications for the first cohort will be accepted from August 25 to October 5.
Officials said the initiative is designed to provide fintechs, startups, and established financial institutions with a platform to pilot new solutions, while helping the central bank develop regulations that keep pace with global financial innovations.
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