The State Bank of Pakistan (SBP) has launched the second cohort of its Regulatory Sandbox, providing individuals and firms an opportunity to test innovative financial solutions in a controlled environment.
The initiative is designed to allow applicants to assess their solutions while helping the central bank refine and upgrade the regulatory environment in response to emerging technologies.
SBP Regulatory Sandbox Supports Responsible Innovation
The second cohort is part of SBP’s broader efforts under its Vision 2028 to support responsible innovation in Pakistan’s digital financial services ecosystem.
SBP launched the Regulatory Sandbox in August 2025 and successfully concluded its first cohort in June 2026.
With the launch of the second cohort, the central bank aims to continue facilitating innovation while maintaining a focus on consumer protection and financial stability.
Four Themes Selected for Second Cohort
For the second cohort, SBP will consider applications covering four specific themes:
- AI in Financial Services
- Innovations in Payments
- Technology-enabled Inward Remittances
- Open Theme – NextGen Financial Services
Applicants are expected to submit innovative solutions that fall within the scope of these themes.
SBP has clarified that only proposals relevant to the announced themes will be considered for participation in the second cohort.
AI and Emerging Technologies in Financial Services
Artificial intelligence is one of the key areas identified for the new Regulatory Sandbox cohort.
The theme provides an avenue for applicants developing AI-based solutions for financial services to test their applications within a controlled regulatory framework.
The initiative comes as financial institutions and technology companies increasingly explore emerging technologies to improve financial products, services and processes.
Focus on Payments and Remittances
Innovations in payments are another priority area under the second cohort.
SBP is also inviting solutions aimed at technology-enabled inward remittances, an area relevant to Pakistan’s financial ecosystem given the importance of overseas remittances to the country.
The sandbox environment can provide innovators with an opportunity to test new approaches while allowing regulators to better understand their potential regulatory implications.
Open Theme for NextGen Financial Services
The fourth category is an open theme covering NextGen Financial Services.
This allows applicants with innovative financial solutions that do not necessarily fit within the other three specified categories to seek consideration, provided their proposals fall within the scope established by SBP.
The open theme is intended to provide room for emerging business models and technologies within the financial services sector.
Applications Open Until November 30
Applications for participation in the second cohort will be accepted until November 30, 2026.
Interested individuals and firms can submit their applications through email to regulatory.sandbox@sbp.org.pk.
SBP has encouraged applicants with innovative solutions related to the four announced themes to participate.
Application Guidelines Available
The application form and step-by-step procedure for participation are available in SBP’s Regulatory Sandbox Guidelines.
Applicants can review the requirements and process before submitting their proposals through the central bank’s official channels.
The central bank has also issued a brief overview explaining the themes covered under the second cohort.
Regulatory Sandbox and Financial Stability
The Regulatory Sandbox is intended to create a controlled environment where innovative financial solutions can be assessed while regulatory considerations are examined.
For SBP, the initiative provides an opportunity to understand emerging technologies and business models while developing an appropriate regulatory response.
The second cohort therefore combines support for financial innovation with the central bank’s stated objectives of consumer protection and financial stability.