SBP Launches ‘Cyber Shield’ Strategy to Boost Banking Sector Cybersecurity

The State Bank of Pakistan has launched a new Cyber Resilience Strategy titled “Cyber Shield” to strengthen the security of banks and financial institutions, as cyber threats continue to rise alongside rapid digitalization.

The strategy provides a comprehensive roadmap for regulated entities to improve their ability to prevent, detect, respond to, and recover from cyber incidents, ensuring uninterrupted access to financial services for businesses and consumers.

The initiative focuses on five key priorities, including strengthening resilience against cyberattacks, improving governance and accountability, enhancing collaboration across the financial sector, developing skilled cyber talent, and continuously updating security practices to address evolving risks.

The central bank highlighted that while digital banking has expanded rapidly, cybersecurity capabilities have not kept pace, creating vulnerabilities across the sector. It noted that many institutions face challenges such as outdated systems, limited investment in cyber defense, and weak incident detection and response mechanisms.

The SBP also raised concerns over heavy reliance on third party service providers, particularly foreign vendors, for critical technology and cybersecurity functions. These dependencies increase risk exposure and complicate oversight, especially as such providers fall outside the direct regulatory scope of the central bank.

Additionally, the report pointed to a shortage of skilled cybersecurity professionals in Pakistan, emphasizing the need for workforce development and stronger collaboration among stakeholders to improve threat intelligence sharing and coordinated response.

The central bank said it will continue to monitor global and domestic cyber risks and update the strategy accordingly, aiming to protect customers, support secure digital innovation, and maintain financial stability in Pakistan’s banking system.