Page 14 - CMA Journal (Jan-Feb 2026)

Exclusive Interview

We must also deepen women’s access to credit by The regulatory sandbox complements both initiatives by
embedding a gender lens in credit planning, introducing providing a safe, supervised environment where
simplified and specialized financing products, leveraging innovators can test new products and services. It allows
digital platforms and fintech partnerships, and adopting the regulator to learn alongside the industry, refine
alternative credit assessment and collateral mechanisms regulations based on real-world evidence, and strike the
to better serve women with limited formal financial right balance between innovation and risk management.
histories. These are some of the areas that will be part of Let me also share the latest developments regarding the
BoE 2.0’s next set of instructions.
Regulatory Sandbox. We have introduced three thematic
Moreover, to benefit from international best practices, in areas for the first cohort: Open Banking, Inward
2025, SBP signed the World Bank’s Women Entrepreneur Remittances, and Digital Merchant Onboarding. Our
(WE) Finance Code to address the persistent gap in teams are currently engaged with the selected
women’s access to credit. Under this framework, participants and are actively facilitating their Regulatory
leveraging the success of our NFIS strategies and Sandbox (RSB) testing, providing guidance and oversight
Banking on Equality policy, SBP is collaborating with throughout the process.
banks, regulators, and government agencies to take What excites us the most is the learning loop the
industry actions to boost access to credit for regulatory sandbox creates. These initiatives allow the
women-owned enterprises, and work with stakeholders State Bank to engage proactively with technology,
to develop an ecosystem that helps women market participants, and consumers, building regulatory
entrepreneurs thrive in the country. A robust ecosystem capacity while shaping innovation in a responsible
that helps women entrepreneurs navigate barriers manner. This approach strengthens the financial system
related to mentorship, market linkages, financial literacy, today and prepares it for the demands of a more digital,
and gender-responsive policies is essential to create inclusive, and interconnected future.
sustainable pathways for growth and empowerment,
and the WE-Finance Code will play a critical role in ICMA: If you had a digital “magic wand” to solve one
achieving SBP’s vision of reducing the gender gap in persistent challenge in Pakistan's financial system,
access to finance. what would it be and why?

ICMA: With a CBDC pilot, Open Banking, and the Deputy Governor: If there were a digital “magic wand,” it
Regulatory Sandbox underway at SBP, which bold would be to achieve universal, low-cost digital
innovations excite you most for turbocharging acceptance for everyday payments, especially at the
Pakistan’s financial ecosystem? small-merchant and informal-sector level. Despite
significant progress in account opening and instant
Deputy Governor: At present, the most exciting aspect payments, the persistence of cash is largely driven by
of these initiatives is that they are shifting from limited acceptance points, perceived costs for
theoretical concepts to controlled execution. The CBDC merchants, and lack of seamless integration with
Proof of Concept (POC), Open Banking framework, and business workflows.
regulatory sandbox are not isolated initiatives; together,
they reflect a coherent strategy to modernize Pakistan’s If every small shop, service provider, and
financial ecosystem while safeguarding stability, trust, micro-enterprise could easily accept digital payments
and consumer protection. without friction, reliable connectivity, and clear value,
many other challenges would be resolved organically.
The objective of the CBDC-POC is to practically test how Government payments, remittances, savings, and even
digital sovereign money could enhance payment access to credit would naturally flow through digital
efficiency, resilience, and financial inclusion, particularly rails. This would accelerate formalization, improve
in retail and government-to-person use cases. It gives transparency, reduce transaction costs across the
the central bank a hands-on understanding of economy, and generate data trails that support
technology, operational models, and policy implications responsible lending. In my view, widespread digital
before any long-term decisions are made.
acceptance is the single lever that could most
Open Banking is equally transformative. By enabling effectively unlock the full potential of Pakistan’s digital
secure, consent-based data sharing, it has the potential financial ecosystem.
to foster competition, innovation, and customer-centric
financial services. This can improve access to credit for The Editorial Board thanks Mr. Saleem Ullah, FCMA, Deputy Governor,
underserved segments, support SMEs, and encourage State Bank of Pakistan (SBP) for sparing his precious time to give an
exclusive interview for Chartered Management Accountant Journal.
new business models, while ensuring strong data
governance and consumer rights.

12 ICMA’s Chartered Management Accountant, Jan-Feb 2026