SBP opens second regulatory sandbox cohort for AI and payments startups

The State Bank of Pakistan (SBP) has launched the second cohort of its Regulatory Sandbox and is accepting applications until 30 November 2026. The central bank announced it in a press release dated 2 October, and Dawn reported it the next day.

The sandbox lets a company test a new financial product on a small scale under the central bank's watch, before the rules for it are final. Dawn said the programme is in line with SBP Vision 2028 and lets the bank refine regulation for emerging technology.

This round has four themes. They are AI in financial services, innovations in payments, technology enabled inward remittances, and an open theme called NextGen Financial Services. Only proposals that fall within those themes will be considered, according to TechJuice.

What happened to the first cohort

The sandbox opened in August 2025 and its first cohort finished in June 2026, as Dawn and TechJuice both reported. Applicants follow the application form and procedure set out in the SBP's Regulatory Sandbox guidelines, which are published on the bank's website.

Coverage by Pakera and the Pakistan Observer says proposals are sent by email to the sandbox team, so a startup does not need to visit an office or open an account. That detail comes from news outlets rather than the press release text reviewed here, so founders should check the guidelines before they send anything.

ProPakistani reported in September that the SBP has also clarified the rules for fintechs after sandbox testing. Finishing a test period does not by itself amount to regulatory approval, so a startup still has to seek the licence that fits its business.

The themes are a useful signal. Payments and remittances are where Pakistani fintechs are most active, and AI is the newest addition. Founders working in those areas now have about six weeks to prepare an application.

Reported from an SBP press release and coverage in Dawn, Business Recorder and TechJuice.