Banks in Pakistan Gear Up for AI Regulations

Pakistan is moving towards regulating the use of Artificial Intelligence in its banking sector. The State Bank of Pakistan (SBP) is preparing a comprehensive framework to ensure AI adoption remains safe, ethical, and effective. This announcement came during the Pakistan Fintech Network’s meeting, which included key figures like SBP Deputy Governor Saleem Ullah.

Tech companies such as TPS, 1LINK (Pvt) Limited, JazzCash, and NayaPay also participated in the discussion. They emphasized the growing reliance on AI for customer service, fraud detection, and operational efficiencies. Meanwhile, the Pakistan Banks’ Association and several commercial banks showed keen interest in developing AI policies that balance innovation with consumer protection.

Saleem Ullah stressed that while AI offers massive potential, its unchecked use could lead to biases and financial instability. The SBP’s move signals a proactive approach, aiming to foster responsible AI usage across Pakistan’s banking landscape. As AI continues to evolve, institutions like the SBP, Pakistan Fintech Network, and major fintech players are set to shape the future of finance in the country.