The State Bank of Pakistan (SBP) has launched the second cohort of its Regulatory Sandbox, opening the programme to individuals and firms seeking to test innovative financial solutions in a controlled regulatory environment. The latest cohort will focus on developments in artificial intelligence, payments, technology-enabled inward remittances and next-generation financial services. Applications for participation will remain open until November 30, 2026.
The second cohort provides an opportunity for applicants to test new financial products, services and solutions while the central bank evaluates their practical and regulatory implications. Through the sandbox framework, participating firms and individuals can operate within a controlled environment where emerging solutions can be assessed before broader market implementation. The programme also gives the SBP an opportunity to examine how new technologies interact with existing financial regulations.
The central bank has identified four specific themes for the second cohort. These include artificial intelligence in financial services, innovations in payments, technology-enabled inward remittances and an open category covering next-generation financial services. SBP has clarified that only proposals falling within the scope of these four themes will be considered for participation in the latest cohort.
Artificial intelligence in financial services forms one of the main areas covered by the programme as financial institutions and technology companies explore new applications of AI across the sector. Payment innovation is another focus, covering solutions aimed at developing and improving payment services. The third theme covers technology-enabled inward remittances, while the fourth provides an open category for other next-generation financial services that fall within the sandbox’s defined scope.
The Regulatory Sandbox is part of SBP’s wider efforts under SBP Vision 2028 to support innovation within Pakistan’s digital financial services ecosystem while maintaining consumer protection and financial stability. The framework allows the central bank to observe new technologies and business models in a controlled setting, helping identify potential regulatory considerations before solutions are introduced more broadly.
SBP initially launched its Regulatory Sandbox in August 2025, with the first cohort subsequently concluding in June 2026. The experience from the initial cohort provides the foundation for the second round, which will again allow participants to test their solutions while giving the central bank an opportunity to assess emerging technologies and consider potential changes to the regulatory framework.
A regulatory sandbox provides a structured environment in which innovative financial products, services and business models can be tested under regulatory oversight. Instead of immediately applying new solutions across the wider market, the framework allows regulators to observe their operation, identify potential risks and evaluate whether existing rules remain appropriate or require modification.
For the second cohort, interested individuals and firms can submit their applications to SBP by email before the November 30, 2026 deadline. The central bank has also issued guidelines covering the application form and step-by-step participation process, along with a separate overview explaining the themes included in the latest cohort. The programme will allow the SBP to continue evaluating developments in digital finance while applicants receive an opportunity to test their proposed solutions within a defined regulatory framework.
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