The State Bank of Pakistan (SBP) has completed the first cohort of its Regulatory Sandbox, aimed at promoting innovation in digital financial services by allowing new solutions to be tested in a controlled environment.
The first cohort, launched in August 2025, focused on three key areas: technology-enabled solutions for inward remittances, open banking, and remote onboarding of merchants.
Following a detailed evaluation process, six participants were selected to test their solutions in the sandbox between January and June 2026. During the testing phase, SBP teams provided participants with regulatory guidance and technical support.
At the conclusion of the testing period, four participants successfully demonstrated their solutions:
Taptap Send UK Limited and United Bank Limited — Technology-enabled solutions for inward remittances
Digi Khata (SMC-Private) Limited — Open banking
Swich Retail Private Limited — Open banking
Neem Exponential Financial Services (Pvt) Ltd — Open banking
The SBP clarified that successfully completing sandbox testing does not constitute regulatory approval. Participants must obtain the necessary authorization and approvals from the central bank before commercially launching the products or services tested through the sandbox.
According to the SBP, the findings, lessons and regulatory recommendations emerging from the first cohort will support the development of appropriate regulatory frameworks for the wider financial industry.
The SBP said the Regulatory Sandbox is expected to continue supporting banks and fintech companies in developing and introducing innovative, practical, user-focused and technology-enabled financial solutions.
The initiative is also intended to expand access to financial services while improving operational efficiency and customer experience.
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