The State Bank of Pakistan (SBP) has announced the introduction of its Technology Risk Management (TRM) Framework for Payment Institutions, marking a significant step in strengthening Pakistan’s digital financial infrastructure. This initiative aims to create a safer, more resilient, and trusted environment for digital payments across the country. The framework sets clear and comprehensive standards for Payment System Operators (PSOs), Payment Service Providers (PSPs), and Electronic Money Institutions (EMIs) to manage technology and cybersecurity risks effectively.
The TRM Framework underscores SBP’s commitment to building a strong foundation for Pakistan’s evolving digital financial ecosystem. By focusing on governance, security, and risk management, the framework ensures that financial institutions (FIs) can withstand cyber threats and maintain operational continuity even during disruptions.
One of the key highlights of the framework is the emphasis on board-level accountability. The Board of Directors of all financial institutions under this framework must now include members with relevant technology expertise. This requirement is designed to enhance oversight and enable informed decision-making when it comes to managing technology-related risks.
The framework also mandates that every financial institution appoint a qualified Head of IT and a Head of Information Security. These roles must be filled by professionals with proven experience and technical knowledge to ensure the organization’s technology infrastructure is both secure and well-governed.
To maintain high standards of security and performance, the TRM Framework requires financial institutions to conduct regular independent Technology Audits. These audits will evaluate the effectiveness of existing security controls and identify potential vulnerabilities before they can be exploited.
Cyber resilience remains a key focus, with institutions required to implement robust identity and access management systems. This includes the adoption of multi-factor authentication (MFA), network segmentation, anti-malware protection, and periodic risk assessments for all IT assets. The goal is to minimize the risk of unauthorized access and data breaches while ensuring operational stability.
A comprehensive incident response plan is another critical component of the framework. It requires institutions to be prepared for all types of technology-related incidents, including ransomware attacks. All incidents must be promptly reported to the State Bank of Pakistan, ensuring transparency and enabling timely action to mitigate risks.
Disaster recovery and business continuity planning also form a central pillar of the TRM Framework. Financial institutions are instructed to develop, test, and maintain these plans annually. The framework stresses that systems should be designed to achieve high availability, minimizing downtime and service disruptions for customers.
Additionally, the SBP mandates financial institutions to maintain an updated inventory of all IT assets and conduct regular risk assessments of any end-of-life hardware or software. This measure aims to eliminate vulnerabilities arising from outdated systems and improve overall resilience.
With the launch of the TRM Framework, the State Bank of Pakistan is setting a new benchmark for digital security and operational governance in the country’s financial sector. This development aligns with global best practices and reflects Pakistan’s growing emphasis on secure digital transformation in finance.
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