Karachi, The State Bank of Pakistan has released draft guidelines for its Regulatory Sandbox, opening them up for public consultation. This initiative is designed to foster innovation in the financial sector by allowing regulated entities, FinTechs, and startups to test new products and business models in a controlled setting.

According to State Bank of Pakistan, the Regulatory Sandbox provides a structured environment for innovators to experiment with innovative financial products, business models, and technologies. This initiative is part of the SBP Vision 2028, aimed at promoting digital financial services innovation and establishing a robust digital payments ecosystem in Pakistan. The sandbox is expected to aid the SBP in developing targeted instructions and regulations for emerging FinTech solutions, contributing to greater financial and digital inclusion in the country.

The draft guidelines allow for participation from entities regulated by the SBP, as well as FinTechs and startups, intending to test new products and business models. The Regulatory Sandbox is seen as a critical step towards understanding the implications of new financial technologies on financial stability and consumer protection.

The SBP has extended an invitation to banks, FinTechs, industry experts, the public, and all other interested parties to engage in this consultation process. This move is also aimed at strengthening the SBP’s collaboration with stakeholders in shaping the future of Pakistan’s financial industry.

For those interested in participating, the draft Regulatory Sandbox framework, including details on eligibility criteria, application procedures, and guidelines, can be accessed on the SBP’s website. Feedback and comments on the draft guidelines are encouraged and can be submitted via email to regulatorysandbox@sbp.org.pk or to the provided address by January 8, 2024.