Karachi, February 16, 2026 – The State Bank of Pakistan (SBP) on Monday launched “Cyber Shield – the Cyber Resilience Strategy for Regulated Entities”, a comprehensive national framework aimed at strengthening the safety, security, and resilience of Pakistan’s banking and financial system against rapidly evolving cyber threats.
The landmark initiative, introduced under the central bank’s Vision 2028 agenda, seeks to enhance cybersecurity governance, operational resilience, and risk management practices across banks and financial institutions, ensuring the protection of customers, safeguarding critical financial infrastructure, and promoting secure digital innovation.
Strengthening Cyber Defenses in a Rapidly Digitalizing Economy
Announcing the strategy, SBP stated that Cyber Shield provides a clear roadmap for regulated entities to strengthen their systems and controls, prevent cyber incidents, respond swiftly to cyber threats, and recover effectively from disruptions.
The strategy adopts a holistic, forward-looking, and collaborative approach to counter increasingly sophisticated cyber risks. It focuses on five core priorities:
• Strengthening the ability of banks and financial institutions to withstand cyber incidents
• Enhancing governance and accountability for cybersecurity
• Promoting sector-wide cooperation and information sharing
• Building skilled cyber talent
• Continuously upgrading security practices to counter emerging threats
SBP said it will closely monitor both global and domestic cyber developments and update the strategy as required to address new and evolving risks. By enhancing cyber resilience, the central bank aims to protect customers, ensure uninterrupted financial services, and support innovation in a secure environment.
Rising Cyber Threats in a Hyper-Connected Financial Ecosystem
In today’s digital economy, financial services are increasingly powered by advanced technologies such as artificial intelligence, cloud computing, blockchain, and real-time payment systems. Pakistan’s banking sector has witnessed accelerated digital transformation in recent years, driven by initiatives such as instant payments, digital onboarding, and branchless banking.
The COVID-19 pandemic further fast-tracked technology adoption, embedding digital operations as the new normal. While this transformation has enhanced efficiency and financial inclusion, it has also amplified systemic cyber risks.
SBP warned that the sector’s growing reliance on technology means that a single major cyber incident could trigger cascading effects, disrupting services, undermining public trust, and threatening financial stability.
Escalating Sophistication of Cyber Attacks
The central bank highlighted that the cyber threat landscape has become significantly more complex, marked by a rise in advanced persistent threats (APTs), ransomware attacks, zero-day malware exploits, and sophisticated financial fraud schemes.
Threat intelligence reports indicate increased exploitation of digital banking applications, while sensitive data — including payment card details and customer credentials — has surfaced on the dark web, posing serious concerns for data protection.
Another critical shift is the targeting of third-party vendors and service providers, which threat actors increasingly exploit as entry points into financial systems. Attacks on global and domestic technology suppliers have underscored the need for stronger cybersecurity standards across the entire digital supply chain.
Growing Risks from State-Sponsored Cyber Operations
SBP also warned about the growing trend of state-sponsored cyber offensive activities, where nation-backed threat groups conduct sophisticated attacks for financial gain or geopolitical objectives. Given the evolving geopolitical environment, cyber threats from hostile states remain a critical risk.
Globally, financial institutions and governments are also witnessing a sharp rise in ransomware attacks, characterized by higher ransom demands and multi-stage attack techniques, further intensifying the cyber risk landscape.
Addressing Gaps in Cybersecurity Maturity
Despite rapid digitalization, SBP noted that cybersecurity maturity and awareness have not progressed at the same pace, resulting in vulnerabilities across the banking sector. Key challenges include:
• Weak cybersecurity governance at board and senior management levels
• Limited understanding of cyber risk exposure
• Delays in system upgrades, increasing attack surfaces
• Gaps in cyber incident detection and response capabilities
The strategy emphasizes the need for board-level oversight, sustained investment in cybersecurity infrastructure, and timely modernization of legacy systems to reduce vulnerabilities.
Building Skills and Strengthening Collaboration
SBP identified the shortage of skilled cyber professionals as a critical bottleneck, noting that Pakistan faces a severe talent gap in cybersecurity. Financial institutions heavily rely on third-party service providers for cybersecurity operations, incident response, and digital forensics, many of which operate from foreign jurisdictions.
This reliance increases dependency risks, making it imperative to strengthen due diligence, vendor oversight, and regulatory coordination to ensure robust cybersecurity standards across the financial ecosystem.
The Cyber Shield framework prioritizes sector-wide collaboration, encouraging financial institutions to share threat intelligence, coordinate incident responses, and invest in workforce development to build long-term cyber resilience.
Ensuring Financial Stability Through Cyber Resilience
SBP reaffirmed that strengthening cyber resilience is essential for financial stability, consumer protection, and sustainable digital growth. By implementing the Cyber Shield strategy, the central bank aims to ensure that Pakistan’s banking sector remains secure, reliable, and capable of withstanding increasingly complex cyber threats.
The initiative represents a major step toward safeguarding Pakistan’s digital financial future while reinforcing trust in the country’s evolving financial system.