SBP's Sandbox and EU AI Act: a timing advantage for Pakistani fintechs

The State Bank of Pakistan launched a Regulatory Sandbox in late 2025 enabling fintechs and banks to test innovative financial products including AI applications. The EU AI Act’s compliance costs for service providers headquartered in the EU will raise operational costs worldwide, creating an opportunity for Pakistani fintechs to build local AI modules to offset rising expenses for domestic banks.

This Wire brief sits within Fusion42's coverage of Fintech.