SBP Opens Applications for Second Cohort of Regulatory Sandbox

SBP regulatory sandbox applications are now open for the second cohort, as the State Bank of Pakistan invites fintechs and financial institutions to test innovative products under regulatory supervision. Applications are being accepted until 30 November 2026 through [email protected], as reported on 4 October 2026.

The announcement marks the next chapter of an initiative designed to let promising financial technologies prove themselves in a controlled environment — before they reach the wider market.

What the Regulatory Sandbox offers

A regulatory sandbox is a safe space for experimentation. Selected participants can trial new financial products, services and business models with real customers, while the central bank closely monitors outcomes and manages risks.

For startups and banks alike, the sandbox lowers the barrier to innovation: instead of waiting for full regulatory approvals, they can demonstrate that their ideas work safely in practice.

Themes for the second cohort

For its second cohort, the SBP has outlined four priority themes that reflect where financial innovation is heading:

• AI in financial services — using artificial intelligence to improve banking, from smarter credit decisions to fraud detection.
• Payment innovations — new ways to move money faster, cheaper and more securely.
• Technology-enabled inward remittances — digital channels to make it easier for overseas Pakistanis to send money home.
• NextGen Financial Services — the next wave of digital banking and financial products.

Key facts

• The State Bank of Pakistan has opened applications for the second cohort of its Regulatory Sandbox.
• Applications are accepted until 30 November 2026 via [email protected].
• Cohort themes: AI in financial services, payment innovations, technology-enabled inward remittances, and NextGen Financial Services.
• The sandbox was launched in August 2025 under SBP Vision 2028.
• The first cohort concluded in June 2026.
• The development was reported on 4 October 2026.

Vision 2028 and the road ahead

The sandbox was launched in August 2025 as part of SBP Vision 2028, the central bank’s strategic roadmap for a modern, inclusive financial system. The first cohort, which concluded in June 2026, gave regulators and participants valuable experience in supervised innovation.

With the second cohort, the SBP is widening the funnel — particularly around artificial intelligence and digital remittances, two areas with enormous potential for Pakistan’s economy. Overseas Pakistanis send home billions of dollars each year, and technology that makes those flows faster and cheaper could have a direct impact on household incomes.

For fintech founders watching from the sidelines, the message is clear: the window is open until 30 November. Pakistan’s financial future is being built now — and the sandbox is where the boldest ideas get their first real test.