The future of fintech in Pakistan is being written. Are you ready to be part of it? The State Bank of Pakistan (SBP) has officially launched its SBP Regulatory Sandbox (RSB) program, marking a milestone in the country’s journey toward a more inclusive, technology-driven financial system. This isn’t just a policy announcement. It’s a real opportunity for startups, technology providers, and financial institutions to shape the future of digital finance in Pakistan.
But how does the SBP Regulatory Sandbox work, who can apply, and how can you prepare to participate? Let’s break it down for innovators like you.
What Is the Regulatory Sandbox (RSB)?
A Regulatory Sandbox is a controlled environment where financial solutions especially those that are new, disruptive, or not fully covered under current laws can be tested live. Think of it as a pilot program: your product goes live but under supervision, with clear boundaries and safety nets.
The SBP Regulatory Sandbox program is part of SBP’s Vision 2028, which focuses on modernizing regulations to keep pace with technological advances and driving financial and digital inclusion across Pakistan. Read SBP’s Vision 2028
Why the SBP Regulatory Sandbox Matters for You
If you’re building a solution that challenges traditional financial models digital wallets, blockchain apps, AI-based credit scoring, or new payment systems the RSB gives you:
- Regulatory support to test your idea
- Consumer feedback in real-time
- A chance to shape future financial regulations
This isn’t just validation it’s a gateway to scaling responsibly and legally in a rapidly evolving market.
For more on fintech trends in Pakistan, check out our guide to emerging fintech startups in 2025.
Key Features of the SBP Regulatory Sandbox Program
1. Cohort-Based Model
The Sandbox will operate in cohorts, each focused on a specific innovation theme. This allows SBP to focus efforts on urgent and high-impact areas. The first cohort’s theme will be announced by end of June 2025, after consultations with industry players.
Action for You:
Start refining your product narrative to align with common fintech themes like payments, lending, regtech, open banking, or digital identity.
2. Controlled Testing Environment
Participants will test their solutions in real market conditions, but with regulatory oversight and safety protocols. This minimizes risk to consumers and the financial system while enabling real-world experimentation.
Action for You:
Start preparing a compliance-ready risk management strategy, covering data privacy, customer protection, and contingency planning.
3. Public Consultation and Flexibility
SBP has shared draft guidelines for public consultation, showing openness to feedback. This makes it likely the final framework will reflect actual market needs.
Action for You:
Provide feedback to SBP if you see something missing in the guidelines. You can influence how the program works.
4. Focus on Digital Inclusion
The RSB isn’t just about innovation it’s about making financial services accessible to more people. Solutions targeting underserved segments will be prioritized.
Action for You:
Highlight how your product promotes financial inclusion whether it’s reaching the unbanked, women, rural populations, or gig workers.
How to Prepare for the SBP Regulatory Sandbox Application
Though the official application process hasn’t opened yet, preparation now will give you a competitive edge.
1. Check Your Eligibility
Your solution should:
- Be technologically innovative
- Address an existing market gap
- Require regulatory flexibility to test
- Be ready for live deployment in a short timeframe
2. Build Your Testing Plan
You’ll need to clearly define:
- Objectives of your test (What are you trying to learn?)
- Duration and scaling potential
- Success metrics
- Risk mitigation strategy
3. Team and Resources
Regulatory testing demands structured reporting, compliance checks, and operational discipline. Make sure you:
- Have a dedicated team
- Can track and report data
- Have a plan for customer support and dispute resolution
What Happens Next?
- End of June 2025: SBP announces the first cohort theme(s)
- Shortly after: Applications open via the SBP’s official portal
- You Apply: If selected, you begin testing under RSB oversight
- Post-Test Evaluation: Successful tests may receive fast-tracked regulatory approvals for broader launch
Final Advice for Innovators
- Don’t delay. Use this time to perfect your pitch, compliance plan, and testing framework.
- Align with national priorities. Solutions supporting digital inclusion, SMEs, and underbanked sectors will have an edge.
Think long-term. The Sandbox isn’t just a trial—it’s your first step into full-scale legal operations in Pakistan’s financial sector.