The Regulatory Landscape for Fintech in Pakistan

In Pakistan, fintech is reshaping financial services through technology, addressing traditional banking limitations and enhancing accessibility. Yet, significant challenges remain, notably the lack of robust data privacy regulations, which poses risks to consumer trust and cybersecurity in digital financial services while impacting innovation and investment in the fintech ecosystem. While regulatory bodies like the State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) have frameworks in place, improvements are necessary. These include expanding the scope of innovation allowed in testing environments, establishing clear data governance within the regulatory sandbox, and implementing a tiered regulatory approach for Electronic Money Institutions (EMIs) to foster a resilient and inclusive fintech landscape in Pakistan, capable of driving sustainable economic growth and financial empowerment across all segments of society.