The State Bank of Pakistan (SBP) is working to strengthen cloud infrastructure and encourage its adoption as part of efforts to accelerate digitalisation across Pakistan’s financial system and the wider digital economy. The central bank believes that greater use of cloud infrastructure will be an important component of the country’s transition towards more digitally enabled financial services, particularly as banks and other financial entities increasingly rely on digital platforms and electronic payments.
Ahmed Saeed, Additional Director at SBP, said that digitalisation cannot progress without adequate cloud infrastructure while speaking at the 18th International Information Security Conference organised by Total Communications in Karachi. He made the remarks during a panel discussion titled “Critical Data on Foreign Clouds: Sovereignty, Sabotage, and the Kill-Switch Question,” where participants discussed the security, control and sovereignty considerations associated with storing critical financial data on cloud platforms.
Saeed said SBP has already established a cloud framework that provides guidance to banks regarding the use of cloud infrastructure. Under the framework, banks can store material information, or valuable information, within private cloud infrastructure located in Pakistan. The framework provides financial institutions with a basis for considering cloud adoption while retaining greater control over important information and its storage environment.
According to Saeed, a hybrid cloud model could be particularly suitable for Pakistan at its current stage of cloud infrastructure development. A hybrid cloud combines private and public cloud environments, allowing financial institutions to use different infrastructure arrangements according to their operational and data requirements. Such an approach could enable banks and other financial entities to retain greater control over sensitive information while also making use of the capabilities offered by public cloud infrastructure.
The growing discussion around hybrid cloud adoption comes as Pakistan’s financial sector continues to move towards digital payments and increasingly technology-driven banking services. Financial institutions are required to manage growing volumes of digital information while maintaining appropriate safeguards for sensitive customer and operational data. Cloud infrastructure can provide the technological foundation for these digital services, but its adoption also introduces considerations around security, performance, confidentiality and visibility.
Saeed noted that moving from a private cloud environment towards a hybrid cloud model would not be without challenges for financial entities. Performance is one of the areas that institutions would need to consider when operating across different cloud environments. The use of both private and public cloud infrastructure can require financial institutions to maintain consistent performance while managing workloads and applications across separate environments.
Data confidentiality is another significant consideration. Financial institutions handle sensitive information and therefore need to ensure that data remains appropriately protected regardless of whether it is stored or processed within private or public cloud infrastructure. Saeed also pointed to the importance of maintaining adequate security visibility across both environments, highlighting the need for financial entities to monitor and protect their systems effectively when adopting hybrid cloud arrangements.
The discussion reflects the broader challenge facing financial institutions as they increase their reliance on digital infrastructure. While cloud technology can support the expansion of digital financial services, institutions must also consider how data is stored, accessed and protected. For banks, decisions concerning cloud architecture are therefore closely connected with cybersecurity, operational resilience and the protection of critical information.
Muneer Kamal, CEO and Secretary General of the Pakistan Banks Association, said that the central bank and commercial banks are continuously working to strengthen cybersecurity as the financial sector undergoes rapid digital change. He noted that banks are responding to the increasing shift towards digital payments and the broader effort to move the economy towards a cashless system.
The growing use of digital payments is increasing the importance of reliable and secure technology infrastructure across the banking sector. As customers increasingly use digital channels for financial transactions, banks need infrastructure capable of supporting these services while maintaining appropriate security measures. Cloud infrastructure is consequently becoming an increasingly relevant part of discussions surrounding the future development of Pakistan’s financial technology ecosystem.
The emphasis on hybrid cloud also highlights the importance of balancing technological flexibility with control over critical information. Private cloud infrastructure can provide financial entities with greater control over where valuable data is stored, while public cloud infrastructure can offer additional capabilities. A hybrid approach allows institutions to combine these environments, although the model requires careful management of security, confidentiality and performance.
SBP’s focus on cloud infrastructure is therefore linked not only to banking technology but also to the broader digital transformation of Pakistan’s economy. As financial institutions expand digital services and the country moves towards greater reliance on electronic payments, cloud infrastructure can serve as an important component of the underlying technology environment.
At the same time, the concerns raised during the conference demonstrate that cloud adoption in the financial sector cannot be considered solely from a technology perspective. Data sovereignty, cybersecurity, confidentiality and the ability to maintain visibility across different cloud environments remain important considerations for financial institutions. The balance between these requirements and the need for scalable digital infrastructure will continue to shape how banks approach cloud adoption.
The comments from SBP and the Pakistan Banks Association indicate that cloud infrastructure and cybersecurity are becoming increasingly interconnected priorities for Pakistan’s financial sector. With the country continuing its shift towards digital payments and a cashless economy, the development of secure cloud infrastructure is expected to remain an important part of the financial system’s digital transformation.
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