Public-private collaboration vital for digital economy: SBP Governor

Governor State Bank of Pakistan (SBP) Jameel Ahmad on Wednesday said Pakistan’s transition to a digital economy hinges on strong collaboration between the public and private sectors, stressing that regulators, banks, fintechs, and policymakers must work collectively to shape a secure and inclusive digital future.

Speaking at the Future of Banking Summit 2025 organized by Systems Limited in Karachi, the Governor lauded the company for providing a platform that fosters dialogue between the banking and technology sectors.

He said that such collaboration is crucial for developing an ecosystem where innovation supports financial inclusion, efficiency, and customer trust.

“The digital future is no longer a distant vision, it is our present reality,” he remarked.

“To remain relevant, financial institutions must evolve rapidly, adopt global standards, and embrace innovation that enhances inclusion and competitiveness.”

Ahmad highlighted that the global financial landscape is undergoing rapid transformation driven by artificial intelligence, big data, 5G connectivity, and digital payments. Pakistan, he said, must keep pace through effective policy coordination and partnerships that blend regulatory oversight with private-sector innovation.

He noted that SBP has taken a series of steps to modernize the country’s financial infrastructure, including upgrades to payment systems for retail and large-value transactions, and regulatory frameworks for digital banks, electronic money institutions, and payment service providers.

The Governor termed Raast, Pakistan’s instant payment system, as the cornerstone of the country’s digital public infrastructure. He urged banks and fintechs to accelerate its adoption and expand customer access to real-time digital transactions.

He also underlined SBP’s efforts to promote Open Finance (Open Banking) and e-KYC frameworks to give customers control over their financial data and enable third-party innovation. In addition, cross-border payment integration through international standards like ISO 20022 would further strengthen Pakistan’s linkages with the global economy.

“Digital transformation cannot succeed in silos,” Ahmad emphasized. “It requires joint efforts,from regulators ensuring stability to technology firms driving innovation, and from banks fostering customer trust to policymakers setting clear direction.”

He said SBP is establishing an innovation hub and has launched the first cohort of its Regulatory Sandbox to test solutions in inward remittances, open banking, and merchant onboarding.

These measures, he added, aim to create a safe space for fintech experimentation and accelerate digital adoption across the economy.

Ahmad concluded by stressing that collaboration, innovation, and trust will be the key pillars of Pakistan’s digital financial future.