SBP opens applications for second regulatory sandbox cohort

The State Bank of Pakistan has opened applications for the second cohort of its Regulatory Sandbox, inviting individuals and firms to submit innovative solutions for testing in a controlled environment. The central bank said the initiative is aimed at supporting responsible innovation in digital financial services while helping it enhance and update its regulatory framework in response to emerging technologies.

According to the SBP, applications for the second cohort will be considered in four areas: artificial intelligence in financial services, payment innovations, technology-enabled inward remittances, and next-generation financial services under an open theme. The central bank said only proposals falling within the specified themes will be considered.

The SBP introduced the Regulatory Sandbox in August 2025 under its Vision 2028 initiative, and said it completed the first cohort in June 2026. The sandbox allows firms to test products and services under supervisory oversight rather than in the open market.

The central bank said the programme is also focused on safeguarding consumers and maintaining financial stability. Applicants can submit proposals by email to regulatory.sandbox@sbp.org.pk until 30 November 2026.