How to Apply to the SBP Regulatory Sandbox in Pakistan by 30 November 2026
Apply to the SBP Regulatory Sandbox second cohort by 30 November 2026. See the four themes, who can apply, the documents and the timeline to September 2027.
To apply for the State Bank of Pakistan's Regulatory Sandbox, email your application to regulatory.sandbox@sbp.org.pk by 30 November 2026. Your idea must fit one of four themes and be built and ready to test with real customers. Ideas that exist only on paper will not be considered.
The SBP opened the second cohort on 2 October 2026. A sandbox is a controlled test run. You offer a new financial product to a small group of real users, under SBP supervision and with some rules relaxed, so that both you and the regulator can see what happens. This guide walks through the steps in order.
Check that your idea fits one of the four themes
The SBP will only consider applications under four themes: AI in financial services, innovations in payments, technology enabled inward remittances, and an open theme called NextGen financial services. Proposals outside these themes are not considered, so check this first.
| Theme | Examples the SBP gives |
|---|---|
| AI in financial services | AI agents that make payments within a customer's clear mandate, fraud detection, credit checks using other data |
| Innovations in payments | Biometric payments, banking as a service, offline payments, payments inside other platforms |
| Technology enabled inward remittances | New corridors, links between remittance providers, faster settlement into accounts and wallets |
| Open theme: NextGen financial services | No examples set. You must show why your idea fits none of the other three |
The examples are starting points, not a fixed list. The SBP says it also welcomes ideas that go beyond them. If you choose the open theme, state the problem, the use case and why it does not belong in themes one to three.
Confirm that you are eligible and your product is ready
Banks and other SBP regulated firms can apply. So can firms licensed by other regulators, start-ups with no licence, and companies from abroad. Unlicensed and foreign applicants can apply directly or through a licensed partner. A foreign firm can also set up an office in Pakistan first.
Readiness matters most this round. The SBP says the technology must already be built, key partnerships must be in place and resources must be committed. A first screening checks whether you are ready to test with real consumers on a limited scale.
The SBP's guidelines list the tests every proposal is judged on:
- It is new, or adds clear value over what exists.
- It helps customers, for example with security, easier access, faster onboarding or a better price.
- You understand which rules apply, or show that the rules are unclear for your idea.
- You can scale it across Pakistan if the test works.
- You have a risk plan with a risk table.
A product that is already sold at commercial scale in Pakistan, or that adds nothing over similar ones, is not allowed in.
Prepare the documents the guidelines ask for
The guidelines list what a formal application must include. Read the latest version on the SBP website before you send anything, because the cohort brief overrides the older guidelines on timings and submission details.
- A cover letter signed by the CEO that states your interest in testing.
- A description of the product, the firm and its ultimate beneficial owner, using the form in Annexure A of the guidelines.
- A detailed testing plan.
- Incorporation documents.
- A copy of your licence, if you have one.
- Proof that you paid the application fee.
- A request for any relaxation of rules that you need.
For a joint application, such as a foreign firm with a bank, give the incorporation papers and licences of each firm. Papers in any language other than English need an English translation.
Send the application by email before 30 November 2026
Email the full application to regulatory.sandbox@sbp.org.pk. The cohort brief says to address it to The Director, Digital Innovation and Settlements Department, State Bank of Pakistan, 4th Floor, Main Building, I.I. Chundrigar Road, Karachi 74000.
The older guidelines name a different department, so we followed the brief for this cohort. The SBP also says all other terms stay as in the guidelines. If you are unsure, ask at the same email address.
On the fee, the guidelines say it is set when each cohort is announced and paid at SBP-BSC offices. We did not find an amount in the 2 October press release or in the themes brief, so ask the sandbox team for the current figure before you send the application.
Plan for the SBP timeline from December 2026 to September 2027
The SBP gives a tentative schedule. The application window runs through November, evaluation follows in December and January, testing runs from February to July 2027, and results are announced in September 2027.
| Stage | Tentative period |
|---|---|
| Applications | October to November 2026 |
| Evaluation | December 2026 to January 2027 |
| Preparation and testing | February to July 2027 |
| Exit stage | August 2027 |
| Results announced | September 2027 |
Shortlisted firms work with the SBP during preparation, so the product is ready before testing starts. In testing, you serve real users under your testing plan and send periodic reports. At exit, the SBP decides whether the product can go to full scale. The guidelines say the SBP may make the names and products of participants public.
The SBP's work on payments is moving fast. Its yearly report found that 92 per cent of retail payments are now digital, and the cheque system is changing too, with cheque clearing by image from 15 October. A payments or remittance idea will be judged against that background.
Common questions about the SBP Regulatory Sandbox
What is the deadline for the second cohort?
Applications are accepted until 30 November 2026, by email to regulatory.sandbox@sbp.org.pk.
Can a start-up without a licence apply?
Yes. The guidelines allow unlicensed local start-ups to apply, alone or with an SBP regulated partner, if they plan to get authorised after successful testing.
Can a foreign company apply?
Yes, either through an SBP licensed partner or by setting up an office in Pakistan and getting a certificate of incorporation from the relevant Pakistani regulator.
Is an idea on paper enough?
No. The SBP says ideas at concept stage will not be considered. The technology must be built and partnerships in place.
How much is the application fee?
We could not confirm an amount. The guidelines say the fee is set when a cohort is announced, and the 2 October notice did not give one. Ask the sandbox team by email.
When will results be announced?
The tentative plan is September 2027, after testing from February to July 2027 and an exit stage in August.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked 8 October 2026. The themes, deadline and email address come from the SBP press release "Regulatory Sandbox-Second Cohort" of 2 October 2026. The timeline, the readiness rule and the postal address come from the SBP's themes brief for the second cohort. The eligibility rules, application contents and fee note come from the SBP Regulatory Sandbox Guidelines. We have not applied ourselves.
About the author
Tax, Bills and Technology Writer
Ali Akhtar is a young and curious voice here at Pakistan Era. He is currently pursuing his A-Levels and has a growing interest in Pakistan’s changing industrial landscape and educational trends. Ali likes to write in a way that helps him explain and explore the world around him. His writing reflects the perspective of the new generation navigating the evolving trends of Pakistan where technology, youth innovation, and shifting opportunities are reshaping the country’s future.
