KARACHI, November 1, 2026 — The State Bank of Pakistan (SBP) has proposed a new regulatory framework that could change how customers access banking services and share their financial information with authorised technology companies.
The central bank released its draft Open Banking Regulations on October 30, inviting public feedback before finalising the rules.
Under the proposed system, customers would be able to authorise regulated third-party providers to access certain financial information held by their banks and other eligible institutions.
The information could be used to develop services that bring together financial accounts, simplify digital payments and help lenders assess applications for credit.
The framework would rely on secure digital connections known as application programming interfaces, or APIs, rather than requiring customers to disclose their banking passwords to other service providers.
A central objective is to give individuals and businesses greater control over how their financial information is used.
For small businesses, access to transaction records could be particularly important.
Traditional lending assessments often depend on financial statements, collateral and established credit histories. With customer permission, transaction data could provide lenders with additional evidence of business activity and repayment capacity.
The proposed regulations also aim to support digital payments between businesses and payments made by consumers to merchants.
However, wider access to financial information would create responsibilities for banks, technology providers and regulators to protect customer privacy and prevent unauthorised transactions.
The SBP says the draft framework incorporates safeguards relating to cybersecurity, fraud prevention, data protection and consumer rights.
The proposal follows work undertaken through the central bank’s regulatory sandbox, which allows financial innovations to be assessed in a controlled environment.
The regulations have not yet been implemented. Banks and financial technology companies would need to comply with the final requirements once the framework is approved and brought into effect.
The SBP has invited comments from financial institutions, technology companies, consumer organisations, researchers and members of the public until November 30, 2026.
The consultation will help determine how Pakistan balances financial innovation with the protection of customer information.
For consumers, the practical significance will depend on which services become available, how clearly permission is requested and whether security protections work effectively.