KARACHI: The State Bank of Pakistan (SBP) has introduced a comprehensive regulatory framework aimed at fostering fairness, transparency, and consumer-centric practices across the country’s financial sector.
Titled the “Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF),” the new initiative seeks to ensure that banks and financial institutions uphold principles of integrity, transparency, and accountability at every stage of their engagement with customers.
By embedding fairness, ethical conduct, and data protection into financial operations, the BC&FRF aims to strengthen public trust, enhance service quality, and promote a more resilient and inclusive financial ecosystem. The framework not only safeguards consumer rights but also reinforces institutional governance within Pakistan’s banking and payments landscape.
Aligned with the SBP’s Vision 2028, the framework supports the central bank’s strategic goal of improving market conduct and consumer protection. It has been developed following extensive consultations with stakeholders from both the demand side — including consumers — and the supply side, encompassing banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), Payment System Operators (PSOs), and Payment Service Providers (PSPs).
The BC&FRF introduces a mix of principles-based and rule-based obligations, tailored to the nature and scope of each institution’s operations. It covers the entire financial product lifecycle, from product design and pre-sale disclosures to service delivery, complaint handling, and relationship termination, ensuring consumers are treated fairly throughout their interactions with financial entities.
The framework is divided into two main sections — Part I outlines the outcome-based general principles, while Part II details six key pillars:
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Governance and Oversight – Defines institutional leadership roles in promoting fair conduct.
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Disclosure and Transparency – Ensures timely and accurate information for informed consumer decisions.
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Fair Treatment and Business Conduct – Encourages equitable, inclusive, and non-discriminatory practices.
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Data Protection and Privacy – Establishes standards for safeguarding consumer information.
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Dispute Resolution Mechanism – Provides accessible and efficient channels for resolving complaints.
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Awareness and Capacity Building – Focuses on institutional readiness and consumer education.
Through the BC&FRF, the SBP aims to cultivate a consumer-first financial environment — one that upholds trust, ethical behavior, and accountability as core pillars of Pakistan’s banking and financial system.
