KARACHI: The State Bank of Pakistan (SBP) has launched an initiative under its Regulatory Sandbox to promote inward remittances and foster innovation in the financial sector.

The move is part of the bank’s broader Vision 2028 strategy.

In a circular issued on Monday, the SBP outlined the themes for the first cohort under its Regulatory Sandbox initiative. The focus will be on three key areas: technology-enabled solutions for inward remittances, open banking, and the remote on-boarding of merchants.

“The Regulatory Sandbox aims to encourage innovation within the financial sector while ensuring consumer protection and maintaining financial stability,” the SBP said in its circular. The initiative will allow applicants to test their products and associated operational models in a controlled environment. This will also help the SBP refine and upgrade the regulatory framework in response to emerging technologies.

The SBP has called on individuals and firms with innovative ideas and products within the specified themes to apply for the programme.

The initiative aims to contribute to Pakistan’s evolving fintech landscape and digital financial ecosystem.

Applications for the first cohort will be accepted from Aug 25 until Oct 5.

Published in Dawn, August 26th, 2025