SBP launches second regulatory sandbox cohort for AI, payments innovations

The State Bank of Pakistan has opened applications for the second round of its Regulatory Sandbox, which covers four themes: AI in finance, payment innovations, remittance technology and an open category for next-generation services. According to a statement from the central bank, individuals and firms can apply by email until November 30, 2026. Only proposals that fall within these four themes will be considered for participation.

Successful applicants will be able to trial their solutions in a controlled setting, while the SBP gathers insight into emerging technologies and refines the rules that apply to them. Profit by Pakistan Today linked the initiative to SBP Vision 2028, which aims to encourage innovation in digital finance while protecting consumers and preserving financial stability. The sandbox lets regulators examine how existing rules should apply before deciding whether the framework needs to change.

The first cohort started in August 2025 and wrapped up in June 2026, and the central bank has published guidelines with the application form, a step-by-step procedure and a separate overview of the themes. Interested applicants can use those documents to prepare their submissions.