Regulatory
Sandbox

Test innovative financial products and services in a safe, controlled environment - with direct support from SECP's regulatory experts.

+ Apply Now How it works

40+

Applications reviewed

12

Active participants

3

Completed cohorts

6

Graduated companies

How it works

Process Flow

Pre Application

Review

Testing

Exit

What is the Regulatory Sandbox?

Regulatory Sandbox is a tailored regulatory environment for conducting limited scale, live tests of innovative products, services, processes, and/ or business models in a controlled environment for a limited period of time so as to assess their viability to be launched on full-scale, and to determine the compatible and enabling regulatory environment that will be conducive for the innovative solutions.

The Regulatory Sandbox is primarily applicable for new products, services or business models which have not been addressed under existing laws and regulations; or these new ideas bring an innovative approach to the market and there exists considerable uncertainty in terms of unexpected adverse outcomes or existing regulatory framework does not fully address the solutions proposed to be experimented through the regulatory sandbox.

Regulatory Sandboxes are becoming increasingly popular regulatory tools internationally. As of now, more than 50 countries have introduced their respective regulatory sandboxes with similar objectives.

The Securities and Exchange Commission of Pakistan (SECP), to promote innovation in financial sector and encourage startups, issued Regulatory Sandbox Guidelines in 2019. The SECP's Regulatory Sandbox is expected to stimulate financial and technological innovation and help in enhancing financial inclusion and broaden the range of financial products in Pakistan. This is Pakistan's first Regulatory Sandbox in the financial services industry.

The applicants can apply for inclusion in a cohort which is a complete lifecycle of the regulatory sandbox implementation in which a set of applicants enter in order to test their innovation in a specified time.

The applications for experimentation through the regulatory sandbox can be sent by the following:

(a) All companies registered with the Commission;

(b) Presently unregistered startups with the intent to get registered in case of successful testing in order to scale out to a larger market;

Click here to view SECP Regulatory Sandbox Guidelines, 2019.

Click here to generate Manual Bank challan for Regulatory Sandbox.

The SECP has a dedicated mailbox (sandbox@secp.gov.pk) for any queries with respect to the Regulatory Sandbox.

How It Works

Stage 1

Application

Complete and submit the sandbox application form via the SECP Innovation Portal. Attach your solution overview, business model, and testing proposal.

◷ 2 - 4 weeks

Stage 2

Evaluation

SECP assesses your application against defined eligibility criteria. Shortlisted applicants are invited for a detailed review meeting with the sandbox team.

◷ 2 - 4 weeks

Stage 3

Live Testing

Approved participants run controlled live tests within agreed parameters. SECP monitors progress, provides regulatory guidance, and reviews quarterly reports.

◷ 2 - 4 weeks

Stage 4

Graduation

Successful participants receive a structured pathway to full regulatory authorisation, with SECP guidance on licensing, compliance, and market entry.

◷ Ongoing Support

Real Advantages for Serious Innovators

Innovation

Direct Innovation Support

Access dedicated SECP sandbox managers who provide hands-on support, policy clarification, and iterative feedback throughout your testing phase.

Guidance

Regulatory Clarity

Receive precise, written guidance on which regulations apply to your model - eliminating legal ambiguity before you scale or seek full licensing.

Safety

Risk-Controlled Testing

Test with real customers under capped exposure limits - generating authentic market data and user insights without regulatory or financial catastrophe risk.

Credibility

Institutional Credibility

SECP endorsement is a powerful signal to investors and customers that your company has been scrutinized by Pakistan's primary capital markets regulator.

Speed

Faster Time to Market

Bypass years of regulatory uncertainty. The sandbox compresses the licensing journey, helping you validate and launch in months rather than years.

Policy

Influence Future Policy

Sandbox findings feed directly into SECP policy reform. Participants help shape the regulatory frameworks that will govern Pakistan's fintech future.