KARACHI: The State Bank of Pakistan (SBP) has released the draft Open Banking Regulations for public consultation, aiming to foster innovation, enhance competition, and expand access to efficient, customer-centric digital financial services in Pakistan.
“Customer data obtained under these regulations will be stored and processed within Pakistan, unless such data is stored or processed through a cloud service provider in accordance with the Framework on Outsourcing to Cloud Service Providers,” said the SBP.
According to the SBP, the draft regulations aim to give customers greater control over their financial data by enabling secure, consent-based data sharing and initiating business payments through authorised Third Party Providers (TPPs).
Draft rules aim to boost competition, innovation through secure data sharing
Recognising the potential benefits and associated risks, the SBP developed these regulations to establish a robust open banking ecosystem and services in the country, it said. The regulations mandate all Account Holding Institutions (AHIs) to provide consent-based access to customer data and payment initiation services, while adhering to the highest standards of security and consumer protection.
Broadly, open banking is intended to facilitate more efficient digital payments and expand access to financial services in Pakistan, the draft regulations said.
In particular, the regulations will facilitate business-to-business (B2B) and consumer-to-business (C2B) payments, as well as enable the use of customer data and transactional history for alternative credit assessment, thereby supporting access to finance for merchants and small and medium enterprises (SMEs), it added.
The SBP believes that the regulations are expected to facilitate the digitisation, enabling innovative uses of consent-based financial data sharing, including robust credit assessments, improved access to financing for SMEs and the development of tailored financial products and services.
Aligned with international best practices and informed by the outcomes of the recently concluded first cohort of SBP’s Regulatory Sandbox on Open Banking, the draft regulations provide robust safeguards for data protection, privacy, cybersecurity, fraud prevention, and consumer protection, the SBP said.
It also supports SBP’s strategic objective of advancing digital financial services through a more connected, inclusive, and efficient financial ecosystem. As part of the public consultation process, SBP invites feedback from all stakeholders, including financial institutions, fintechs, technology providers, consumer groups, academia, and the general public, to help refine the proposed framework.
Published in Dawn, November 1st, 2026
