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October 4, 2026
The State Bank of Pakistan (SBP) has launched the second cohort of its Regulatory Sandbox, allowing individuals and firms to test innovative financial solutions within a controlled regulatory environment. The initiative focuses on supporting responsible innovation in Pakistan’s digital financial services sector while helping the central bank develop regulations in response to emerging technologies. The second cohort will cover AI in financial services, payment innovations, technology-enabled inward remittances, and next-generation financial services.
The State Bank of Pakistan (SBP) has opened the second cohort of its Regulatory Sandbox, inviting individuals and businesses to submit proposals for testing innovative financial solutions in a controlled regulatory setting.
The initiative is designed to support responsible technological innovation across Pakistan’s digital financial services landscape while giving the central bank an opportunity to evaluate emerging solutions before considering broader regulatory approaches. Through the sandbox, participants can test their products under controlled conditions, with consumer protection and financial stability remaining key considerations.
Applications for the latest cohort will be considered under four designated areas: Artificial Intelligence (AI) in Financial Services, Innovations in Payments, Technology-enabled Inward Remittances, and NextGen Financial Services.
Under the AI in Financial Services category, applicants can propose solutions that use artificial intelligence to improve or transform financial services. The Innovations in Payments theme is focused on new technologies, products and approaches related to payment services and infrastructure.
The third category, Technology-enabled Inward Remittances, is intended for solutions that can facilitate, enhance or streamline the flow of remittances into Pakistan. The fourth area, NextGen Financial Services, serves as an open category, allowing applicants to present other innovative financial solutions that may contribute to the development of the country’s digital finance ecosystem.
The SBP has set November 30, 2026, as the deadline for submitting applications. Proposals must be sent through the designated SBP email channel and will be assessed against the themes announced for the second cohort.
To facilitate applicants, the central bank has also issued an application form and outlined a step-by-step submission process in its Regulatory Sandbox guidelines. These resources are intended to help prospective participants understand the requirements and prepare their proposals accordingly.
The SBP originally introduced its Regulatory Sandbox in August 2025 as part of its Vision 2028. The first cohort completed its testing phase in June 2026, providing the central bank with experience in assessing innovative financial solutions within a controlled environment.
With the launch of the second cohort, the SBP is seeking to expand opportunities for financial technology innovation while strengthening its understanding of new developments in digital finance. The initiative will also help the regulator identify emerging opportunities and challenges and use those insights to refine Pakistan’s regulatory framework as the financial sector continues to evolve.
