In a collaborative effort to support innovation while ensuring regulatory compliance, the Pakistan Software Houses Association (P@SHA) and the State Bank of Pakistan (SBP) held an important meeting on May 16, 2025, at the National Aerospace Science and Technology Park (NASTP) in Karachi. The focus of the meeting was the regulatory sandbox framework for fintechs, a key mechanism designed to enable experimentation with digital financial solutions in a controlled and regulated environment.
This initiative reflects the growing need to align regulatory practices with the rapid pace of technological advancements in the financial sector. As Pakistan’s digital financial ecosystem continues to expand, such measures are crucial in balancing innovation with risk management. The SBP’s engagement with P@SHA underscores its commitment to open dialogue with industry stakeholders and the co-creation of policies that are both forward-thinking and practical.
The meeting was attended by a team of SBP officials including Muhammad Faisal Mazhar, Senior Joint Director, along with representatives from the Digital Innovation & Settlement Department. Also present from SBP were Gulzar Khan, Joint Director of the Payment System Policy and Oversight Department, and team members Dilshad Bano, Ali Hussnain Babar, Jawaria Rehman Qazi, and Abdullah Javed Mirza.
On behalf of P@SHA, several key members participated in the meeting. Attending virtually were Secretary General Ali Hasani and Central Executive Committee (CEC) members Salman Dar and Usman Akbar. The in-person attendees included Shahzad Shahid, former Chairman of P@SHA; M. Azam Mughal, former CEC member; Dr. Naveed Iqbal, a member of the Policy and Government Relations Committee; and Filza Maniar, Director of HR and Finance.
During the discussion, the SBP officials provided an overview of the goals and structure of the regulatory sandbox, which aims to provide fintech companies with the opportunity to test innovative products, services, or business models in a real-world environment under regulatory supervision. The framework allows for limited-scale operations for a defined period, helping identify any potential risks or challenges before broader implementation.
Both parties agreed on the importance of continued collaboration to ensure that the sandbox remains effective, accessible, and aligned with industry needs. It was decided that SBP would share further details and documentation regarding the sandbox framework. This will be followed by a joint webinar organized by P@SHA and SBP, specifically for P@SHA member companies. The webinar will outline opportunities for the IT and fintech industry, explain how companies can apply to participate in the sandbox, and include an interactive Q&A session to address industry queries.
This collaboration is seen as a significant step toward building a more robust and agile fintech environment in Pakistan. By promoting transparent and inclusive policy development, SBP and P@SHA are working to ensure that innovative financial solutions can thrive within a well-regulated framework. As fintech continues to evolve and influence every aspect of the financial ecosystem, initiatives like this will play a central role in shaping Pakistan’s digital financial future.
