Pakistan Banks Association, in collaboration with SBP, has conducted Pakistan’s first industry wide cyber security drill aimed at strengthening cyber resilience across the banking sector. The initiative marks a coordinated effort by the country’s financial ecosystem to enhance preparedness against evolving cyber threats and to improve collective response mechanisms among regulated financial institutions. The exercise reflects increasing recognition of cyber security as a shared responsibility within the financial system, particularly as digital banking, online transactions, and interconnected platforms continue to expand in scale and complexity.
According to information shared by the organizers, the cyber security drill was designed to simulate realistic threat scenarios faced by banks and financial institutions in a controlled environment. The objective was to assess readiness, identify gaps in response protocols, and improve coordination across institutions when dealing with cyber incidents. By bringing multiple banks under a single industry wide exercise, PBA and SBP aimed to encourage collaboration, information sharing, and alignment on best practices for managing cyber risks. The drill focused on strengthening institutional capabilities while also reinforcing trust and cooperation across the sector.
The initiative forms part of broader efforts by SBP and industry stakeholders to enhance operational resilience within Pakistan’s financial system. As cyber threats become more sophisticated, financial institutions face growing risks related to data security, service continuity, and customer trust. Through this exercise, participating banks were able to test internal controls, incident response procedures, and communication channels under simulated pressure. The drill also provided an opportunity for institutions to evaluate decision making processes, escalation mechanisms, and coordination with regulators during potential cyber incidents. Insights gained from the exercise are expected to inform future improvements in cyber security frameworks and operational preparedness.
PBA stated that the industry wide nature of the drill is a key strength of the initiative, as cyber incidents often have systemic implications rather than affecting isolated entities. By fostering greater collaboration, the exercise aims to reduce fragmentation in response efforts and promote a more unified approach to cyber resilience. The drill also supports the development of a shared understanding of threat landscapes, enabling institutions to anticipate risks more effectively and respond in a timely and coordinated manner. Such collaboration is increasingly important as financial institutions rely on shared infrastructure, third party service providers, and interconnected digital platforms.
SBP’s involvement in the exercise highlights the regulator’s focus on proactive risk management and oversight in an increasingly digital financial environment. By working closely with PBA, the central bank aims to ensure that cyber security remains a priority at both the institutional and industry levels. The drill aligns with regulatory expectations around operational resilience, governance, and risk management, reinforcing the importance of preparedness rather than reactive measures. It also signals the regulator’s intent to encourage continuous improvement in cyber security capabilities across the banking sector.
The organizers noted that the initiative is expected to contribute to stronger cyber resilience, improved situational awareness, and more effective collaboration among financial institutions. By conducting a structured and coordinated exercise, PBA and SBP aim to help banks better understand their vulnerabilities and strengthen their ability to withstand and recover from cyber incidents. The exercise also supports the broader goal of maintaining stability, confidence, and trust in Pakistan’s banking system as digital transformation accelerates. Through initiatives such as this industry wide drill, the financial sector continues to work toward building a more secure and resilient digital ecosystem capable of addressing emerging cyber risks.
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