The National Institute of Banking and Finance (NIBAF) Pakistan conducted a high-impact training session on July 21, 2025, for participants of the State Bank Officers Training Scheme (SBOTS-27), focusing on one of the most critical contemporary issues facing financial regulators: “Key Issues and Challenges for Central Banks on Innovation, Fintech, and AI Disruption Management.”
The session was led by Mr. Riaz Nazarali Chunara, CEO of NIBAF Pakistan, who brought years of financial leadership and regulatory experience to the discussion. Addressing officers in training for the State Bank of Pakistan, Mr. Chunara offered a comprehensive analysis of how rapid technological advancements—particularly in Fintech and Artificial Intelligence—are reshaping the central banking landscape.
With the financial services sector undergoing major transformation due to evolving digital infrastructures, algorithmic decision-making, decentralized finance models, and AI-powered platforms, central banks globally are now at the crossroads of technological adaptation and policy formulation. Mr. Chunara’s session explored how these forces are challenging traditional supervisory roles, risk management frameworks, and monetary policy tools.
He emphasized that while innovation holds immense promise for improving efficiency, financial inclusion, and service delivery, it also introduces regulatory blind spots, new systemic risks, and ethical dilemmas that central banks must anticipate and manage. For countries like Pakistan, where the digital finance space is expanding rapidly, the need for proactive regulatory responses is more urgent than ever.
Mr. Chunara elaborated on key areas where central banks must evolve, including developing internal digital capabilities, rethinking regulatory frameworks for Fintech startups, building AI literacy among policy staff, and engaging in cross-border cooperation on digital finance governance. He also addressed the importance of data privacy, algorithmic transparency, and cybersecurity in the era of machine-driven financial services.
The session included real-world examples and case studies from global jurisdictions, providing SBOTS participants with insights into how leading central banks are experimenting with digital currencies, AI-based supervision tools, and sandbox environments to manage innovation without compromising financial stability.
Participants also explored the importance of designing flexible but enforceable regulatory models that can accommodate rapid change while safeguarding consumer interests and maintaining macroeconomic balance. Through interactive discussion, Mr. Chunara encouraged the upcoming officers to adopt a forward-looking mindset and to integrate emerging technology trends into their future roles as policymakers and regulators.
By engaging directly with future central bank officers, NIBAF continues to bridge the gap between academic theory and real-world challenges, particularly at the intersection of finance and technology. This session reflects NIBAF’s broader mission of enabling Pakistan’s financial ecosystem to adapt to the demands of a digital-first future.
The SBOTS-27 program represents a foundational pillar in the State Bank’s talent development strategy, and initiatives like this one are crucial to preparing the next generation of central banking leaders to navigate the disruptive forces shaping global finance.