The State Bank of Pakistan's recent report highlights serious digital infrastructure shortcomings in Pakistan, citing the country’s poor global rankings in broadband and mobile internet performance, cybersecurity vulnerabilities, and the slow pace of digital adoption. The report also notes progress with initiatives such as the RAAST digital payments platform, emphasizing the need for coordinated government action to develop a secure, inclusive digital public infrastructure.

The State Bank of Pakistan (SBP) has introduced new security guidelines aimed at enhancing digital payment security. The measures, scheduled to take effect on January 1, 2025, require banks and microfinance banks to upgrade their notification systems and adopt secure authentication methods to combat fraud.

Finance Minister Muhammad Aurangzeb hinted at amending the State Bank of Pakistan law to potentially remove restrictions barring dual nationals from key leadership roles. The proposed change, driven by concerns over a limited talent pool, may lead to increased political influence over the central bank, raising questions about its institutional independence. Notably, the minister also renounced his earlier proposal to review SBP-imposed penalties, a move intended to preserve the bank's autonomy.

On December 5, 2023, the State Bank of Pakistan unveiled a draft regulatory sandbox aimed at promoting innovation in the digital financial services sector. The initiative is designed to foster testing of new technologies, enhance regulatory clarity, and boost financial inclusion by integrating disruptive fintech solutions into the market.

The State Bank of Pakistan Amendment Bill, passed in January 2022 and discussed in a December 2023 Dawn article, limits the SBP’s ability to provide direct credit to the government and reinforces its mandate to prioritize price stability over short‐term political objectives. This legislative move aims to insulate monetary policy from populist interference and ensure long-term economic stability.

The State Bank of Pakistan has issued a comprehensive set of guidelines directing commercial banks and microfinance institutions to enhance their digital fraud prevention strategies. The guidelines require financial institutions to adopt robust real-time fraud detection systems, impose restrictions on high-risk digital transactions, and upgrade legacy systems, all aimed at boosting customer protection and modernizing banking security before the compliance deadline of December 31, 2023.