SBP Governor Calls for United Effort to Advance Digital Banking in Pakistan

The Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has called for a unified national approach to digital banking in Pakistan, saying that collaboration between regulators, banks, fintechs, and policymakers is essential to shaping a future where every Pakistani can confidently participate in the digital economy.

Addressing the Future of Banking Summit 2025 held in Karachi, the Governor emphasized that “the digital future is no longer a distant vision; it is our present reality.” He urged financial institutions to evolve rapidly, adopt international standards, and embrace innovation that enhances financial inclusion, efficiency, and customer trust.

Driving Pakistan’s Digital Banking Transformation

Mr Jameel Ahmad commended Systems Limited for organizing the summit, calling it an important platform that fosters collaboration between the banking and technology sectors. He noted that the global financial landscape is undergoing rapid transformation fueled by artificial intelligence (AI), big data analytics, 5G connectivity, and digital payments, technologies redefining how customers engage with financial institutions.

By working together, we can build a future where every Pakistani confidently participates in the digital economy,

The Governor reaffirmed that the State Bank of Pakistan has been at the forefront of several initiatives aimed at modernizing the country’s financial infrastructure and enabling innovation across the sector.

In his address, Jameel Ahmad explained that the SBP, alongside other financial regulators, is continuously evolving to meet the demands of a rapidly changing digital landscape.

Over the past few years, the central bank has introduced a series of reforms, including:

• Upgrading its digital payment infrastructure, covering both retail and large-value transactions.

• Issuing enabling regulations for digital banks, electronic money institutions (EMIs), and payment service providers.

• Enhancing cybersecurity measures to protect financial systems from threats and ensure operational resilience.

Raast: The Cornerstone of Pakistan’s Digital Payments

Highlighting the success of Raast, Pakistan’s national instant payment system, the Governor described it as the cornerstone of the country’s digital public infrastructure.

Raast allows citizens, businesses, and government entities to make real-time, low-cost digital transactions securely. The SBP chief called on banks and financial institutions to accelerate Raast adoption and expand digital payment solutions to more users, particularly in underserved areas.

Wider use of Raast will transform how Pakistanis move money, making payments faster, safer, and more affordable.

Pushing for Financial Inclusion and Open Banking

Governor Ahmad reiterated that digital financial inclusion remains a key goal of the SBP’s strategy. The central bank is promoting Open Finance (Open Banking) and electronic Know-Your-Customer (e-KYC) initiatives to simplify customer onboarding and give individuals more control over their financial data.

He shared that SBP is also pursuing cross-border payment integration using global standards like ISO 20022, which will make remittances and trade-related transactions faster and more transparent.

“These reforms will empower customers, attract investment, and position Pakistan’s banking sector within the global digital economy,” he noted.

Cybersecurity and Regulatory Innovation

With growing reliance on technology, the Governor stressed the importance of trust and security in the digital financial system. He highlighted that SBP has developed strong regulatory frameworks, fraud prevention systems, and customer protection mechanisms to ensure that innovation is balanced with safety.

He also revealed that SBP is in the advanced stages of launching an Innovation Hub, along with its Regulatory Sandbox, where fintech startups and financial institutions can test new solutions in areas like open banking, merchant onboarding, and remittance services.

Innovation must go hand in hand with regulation. The sandbox allows us to support creativity while ensuring that consumer protection and data security remain uncompromised.

He concluded by reaffirming SBP’s commitment to creating an enabling regulatory environment that nurtures innovation, builds resilience, and accelerates Pakistan’s transition toward a fully digital financial system.

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