SBP consolidates licensing rules for banks, financial institutions

The State Bank of Pakistan issued a unified licensing handbook on October 28, 2026, setting out the rules for new regulated financial businesses. Profit by Pakistan Today reported that the document applies to applications covering commercial and digital banking, microfinance, currency exchange, electronic money, payment services and private credit information. It brings together approval procedures, ownership tests, capital thresholds and governance requirements.

Applicants must show credible funding, sound finances and workable business plans, while sponsors and senior staff face suitability checks. The SBP bars shell entities and lists other grounds for disqualification, including serious convictions and certain public or political roles. Fees range from Rs 200,000 to Rs 5 million, and complete applications are generally assessed in six to eight weeks. Locally established commercial banks face a Rs 20 billion minimum capital threshold; the handbook also retains a requirement for commercial banks to list on the Pakistan Stock Exchange, with up to four years allowed after starting business.