The State Bank of Pakistan (SBP) has unveiled its Technology Risk Management (TRM) Framework for Payment Institutions, marking a significant milestone in fortifying Pakistan’s digital financial ecosystem. The newly issued framework provides a structured approach to managing technology and cyber risks faced by Payment System Operators (PSOs), Payment Service Providers (PSPs), and Electronic Money Institutions (EMIs). This initiative underscores the central bank’s ongoing commitment to building a secure, resilient, and trustworthy digital payments environment across the country.
The TRM Framework outlines a comprehensive set of policies and governance mechanisms aimed at ensuring that financial institutions adopt globally aligned technology controls to mitigate operational vulnerabilities. The SBP has emphasized that as Pakistan’s financial sector increasingly adopts digital channels, strengthening cybersecurity and operational resilience is vital to safeguard consumer data, ensure payment integrity, and maintain financial stability.
Under the new framework, the role of governance and accountability has been clearly defined. The Board of Directors of financial institutions will be required to include members with relevant technological expertise, ensuring effective oversight of IT-related risks. Similarly, financial entities must appoint qualified Heads of IT and Information Security to oversee technology operations, implement security controls, and manage emerging threats in real time.
The framework mandates that financial institutions conduct regular, independent technology audits to evaluate the adequacy of their internal controls. These audits are intended to help institutions proactively identify gaps, manage vulnerabilities, and stay aligned with evolving global cybersecurity standards. SBP has also directed institutions to maintain strong identity and access management protocols, including the implementation of multi-factor authentication (MFA), network segmentation, and continuous monitoring to prevent unauthorized access and data breaches.
In addition to preventive measures, the TRM Framework places heavy emphasis on incident preparedness and response. Institutions must establish and maintain a detailed incident response plan capable of addressing all technology-related disruptions, including ransomware attacks and system intrusions. All significant incidents are to be reported promptly to the SBP to ensure transparency and coordinated action across the financial system.
Disaster recovery and business continuity planning are also key components of the new framework. Financial institutions are now required to design and test recovery mechanisms annually to ensure high system availability and minimal service disruption in the event of major outages. Furthermore, they must maintain an up-to-date inventory of all IT assets and regularly assess risks associated with end-of-life hardware and software to prevent exposure from outdated systems.
According to the central bank, the TRM Framework aims to strengthen the operational foundations of Pakistan’s payment industry as it transitions toward a more digitally integrated economy. The policy aligns with global best practices and supports the broader national vision for financial inclusion through secure digital finance.
Industry experts view this as a timely intervention given the rapid adoption of digital payments and the growing complexity of financial technology platforms in Pakistan. The framework is expected to boost public trust in digital transactions, enhance institutional readiness against cyber threats, and promote a culture of proactive risk management across the sector.
The full framework document is available on the State Bank of Pakistan’s official website, offering detailed guidance to all regulated entities. With this development, SBP continues to reinforce its position as a forward-looking regulator, focused on creating a secure digital financial infrastructure that supports innovation while maintaining operational integrity.
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