The State Bank of Pakistan (SBP) has invited public feedback on its draft regulatory framework titled “Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF),” a step that underscores the central bank’s commitment to strengthening consumer rights in the country’s financial sector.
The framework, published on SBP’s official website, lays down guiding principles and detailed rule-based instructions designed to encourage responsible conduct, accountability, and fairness among financial institutions. At its core, the framework aims to guarantee that consumers engaging with banks and other regulated entities are treated with respect, transparency, and fairness in all aspects of service delivery.
According to SBP, the consultation is an essential element of the policymaking process. By seeking feedback from the public, the regulator intends to incorporate diverse perspectives, including those of consumers who are directly impacted by financial services. The move highlights SBP’s efforts to make regulation more inclusive, ensuring that final policies address the needs and concerns of both customers and service providers.
The consultation period is open until September 30, 2025. Individuals and organizations can review the draft document on SBP’s official website at https://www.sbp.org.pk/BS/index.asp and submit their feedback via email to BCPD@sbp.org.pk. A structured feedback form is also available at the same link, allowing respondents to provide detailed and organized input.
The BC&FRF draft introduces a comprehensive approach to consumer protection in the financial sector. It emphasizes principles such as fairness in marketing, clarity in communication, responsible product design, efficient complaint resolution, and accountability of financial institutions in upholding consumer rights. By embedding these principles into regulatory guidance, the SBP seeks to foster a culture where customer interests remain central to business practices.
Consumer protection has become increasingly critical as Pakistan’s financial ecosystem expands through digital banking, fintech innovations, and greater access to financial products. With this growth, risks such as mis-selling, lack of transparency, and insufficient grievance redressal mechanisms have also surfaced. The BC&FRF is intended to mitigate these risks by setting higher standards for business conduct and ensuring that customer well-being is not compromised.
Industry observers believe that the proposed regulations could also boost public confidence in financial services. By enhancing trust between consumers and institutions, the framework has the potential to expand financial inclusion, encouraging more individuals and small businesses to adopt formal financial channels.
The SBP’s approach to consult the public reflects a global trend where financial regulators increasingly involve stakeholders in shaping consumer-centric policies. The ultimate goal is to build a financial system that not only delivers economic growth but also protects the rights of its users.
The central bank has urged citizens, financial institutions, consumer groups, and industry experts to actively participate in the consultation process. It views the input from all stakeholders as vital for finalizing a framework that balances innovation, stability, and fairness in the financial sector.
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