The State Bank of Pakistan (SBP) has released a draft Open Banking Regulations for public consultation, inviting financial institutions, fintech companies, technology providers and other stakeholders to share their feedback on the proposed framework. Announced on October 30, 2026, the draft aims to encourage innovation, increase competition and expand access to customer-focused digital financial services in Pakistan. A central feature of the proposed regulations is to give customers greater control over their financial information through secure, consent-based data sharing. The framework also proposes enabling authorised Third-Party Providers (TPPs) to initiate business payments, creating opportunities for financial technology companies and service providers to develop solutions that connect customers, banks and businesses. SBP is seeking comments on the draft until November 30, 2026, before proceeding with the consultation process.
Under the proposed framework, customers would be able to authorise the sharing of their financial data with approved third-party providers. This approach, commonly associated with open banking, allows financial information held by one institution to be accessed by another authorised service provider with the customer’s consent. The draft also provides for payment initiation through TPPs, with particular relevance to business-to-business (B2B) and consumer-to-business (C2B) transactions. By enabling authorised providers to connect with financial institutions, the framework could support digital payment services that reduce reliance on separate banking channels and manual processes. The proposed arrangements are also intended to facilitate new financial products and services based on customer-authorised information rather than restricting financial data to the institution where it was originally generated.
SBP expects consent-based financial data sharing to support several applications beyond payments. These include more detailed credit assessments, improved access to financing for small and medium-sized enterprises (SMEs), and the development of financial products tailored to customers’ requirements. For lenders, access to authorised financial information could provide additional insight into an applicant’s financial activity and help inform credit decisions. SMEs, which may have limited conventional credit histories, could potentially benefit from alternative ways of demonstrating their financial position. The proposed framework also recognises the importance of safeguards as financial data becomes accessible across different service providers. According to SBP, the draft includes provisions addressing data protection, privacy, cybersecurity, fraud prevention and consumer protection. The central bank said the regulations have been aligned with international best practices and informed by the outcomes of its recently concluded first Regulatory Sandbox cohort focused on open banking.
The consultation is open to financial institutions, fintech companies, technology providers, consumer groups, academia and members of the general public. Stakeholders can submit their comments by November 30, 2026, through email at psdpolicy@sbp.org.pk, using the subject line “Feedback on Draft Open Banking Regulations”. Responses can also be sent by post to the Payment Systems Policy & Oversight Department, fourth floor, SBP Building, I.I. Chundrigar Road, Karachi. The complete draft is available through the State Bank of Pakistan website. The consultation will allow stakeholders to review the proposed requirements and provide input before the framework is finalised. For Pakistan’s banking and fintech sectors, the proposed regulations could establish a shared foundation for consent-based data access, third-party payment services and new digital financial products, subject to the final regulatory requirements.
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