The State Bank of Pakistan (SBP) has issued a new regulatory framework titled “Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF)” as part of its Vision 2028 strategy to enhance market conduct and strengthen consumer protection in the financial sector.
According to the SBP, the framework establishes a comprehensive set of principles and rules for banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), and Payment System Operators/Payment Service Providers (PSOs/PSPs).
It covers all stages of the product lifecycle — from product development and disclosure to service delivery, complaint resolution, and termination processes — aiming to create a customer-centric financial ecosystem.
Developed after extensive consultations with industry stakeholders and consumer representatives, the BC&FRF is structured in two parts. Part I outlines outcome-based general principles, while Part II defines six key pillars: governance and oversight, disclosure and transparency, fair treatment and business conduct, data protection and privacy, dispute resolution, and awareness and capacity building.
The SBP said the framework promotes institutional accountability, ethical practices, and consumer education. It seeks to ensure that financial institutions provide transparent information, protect customer data, and establish accessible redress mechanisms.
The central bank described the issuance of the BC&FRF as a major milestone toward fostering fairness, transparency, and trust in Pakistan’s financial system, reaffirming its commitment to safeguarding consumer rights and improving business conduct standards.
