The State Bank of Pakistan (SBP) has introduced a consolidated licensing and authorisation handbook to simplify regulatory requirements for banks, fintech companies and other financial institutions.
Issued on October 28, 2026, through BPRD Circular No. 03, the handbook covers commercial banks, digital banks, microfinance banks, exchange companies, electronic money institutions, payment service providers and private credit bureaus.
Key Licensing Requirements
The new framework outlines eligibility criteria, capital requirements, application fees and approval procedures. Applicants must demonstrate financial strength, transparent ownership, legitimate funding sources and compliance with regulatory standards.
Application processing fees range from Rs 200,000 to Rs 5 million, depending on the type of institution. Complete applications that meet the prescribed requirements generally receive decisions within six to eight weeks, although processing times may vary.
Locally incorporated commercial banks must maintain minimum paid-up capital of Rs 20 billion. Digital banks face separate capital requirements based on their licence category and operational stage.
The handbook also establishes governance standards and disqualifies certain individuals, including specified public office holders, from obtaining licences or acting as sponsor shareholders.
Impact on Pakistan’s Financial Sector
The consolidated framework provides clearer guidance for businesses seeking to enter Pakistan’s financial services industry. It also reinforces the SBP’s focus on financial stability, transparency, consumer protection and regulatory compliance.
For prospective investors and fintech companies, understanding the updated requirements will be essential before applying for a licence.
Source: State Bank of Pakistan, BPRD Circular No. 03, October 28, 2026.