SBP Core Banking Network Launched With US Help
The United States and the State Bank of Pakistan (SBP) have marked the deployment of the SBP core banking network and software-defined data centre in Karachi. The multimillion-dollar project, awarded to US technology company Cisco, is designed to modernise Pakistan’s critical financial infrastructure.
US Chargé d’Affaires Natalie Baker joined SBP Governor Jameel Ahmad and senior executives from Cisco Systems Pakistan at the central bank’s head office in Karachi on Friday to mark the successful deployment.
“The multimillion-dollar project, awarded to US technology company Cisco, marked a significant step towards modernising Pakistan’s critical financial infrastructure,” a press release said.
The project set up a secure, agile and resilient software-defined data centre. It is designed to safeguard monetary stability and ensure reliable digital banking services across the country.
What the new SBP core banking network does
A core banking network is the system a central bank uses to run its own operations and to settle payments between banks. A software-defined data centre replaces fixed hardware with software that can shift computing power where it is needed. Together, they give the State Bank a faster and more flexible base for the country’s payment and settlement systems.
The joint engineering effort behind the project involved a complex implementation and migration. Governor Ahmad and Cisco Pakistan Country General Manager Kashif Ul-Haque praised the work, noting that it was completed while central banking operations continued without interruption, according to the release.
That detail matters. Any break in the central bank’s systems would ripple through every bank in the country. The migration had to move live systems to the new platform without stopping the daily flow of payments, settlements and banking operations.
For ordinary Pakistanis, the change should show up as steadier digital banking. Mobile apps, online transfers and ATM networks all depend on the systems that sit behind them. A more resilient central bank platform lowers the risk of outages that leave customers unable to move money. Banks have already been told to ease SME lending for small businesses, and reliable digital rails make that lending easier to deliver.
Baker praises the partnership
Speaking at the deployment ceremony, Baker stressed the importance of trusted and secure technology in supporting modern financial systems. She also pointed to the growing commercial ties between the United States and Pakistan.
She described the central bank’s infrastructure as “a national asset that underpins economic stability and public confidence”, according to the release.
“The State Bank of Pakistan’s choice to partner with American industry demonstrates a commitment to technology quality, security, and long-term reliability,” Baker said.
She added that the United States valued its longstanding commercial partnership with Pakistan and stood ready to continue connecting Pakistani institutions with “world-class American innovation”.
The event also underlined the US government’s commitment to encouraging private-sector collaboration, promoting transparent and secure digital infrastructure, and strengthening bilateral trade and investment ties, the release said.
The project lands at a sensitive time for Pakistan’s economy. The country’s external debt has nearly doubled to $135 billion, according to World Bank data, and the IMF has urged Pakistan to broaden its tax base and press ahead with growth reforms. Against that backdrop, the government is leaning on digital systems to widen the tax net and cut leakages, and it is weighing a tax reprieve for 1.2 million traders under a fixed tax scheme. A modern core banking platform gives the State Bank the tools to support that shift.
What happens next
The network and data centre are now live, so the focus shifts to how the State Bank uses them. The platform should support faster settlement, stronger cyber defences and steadier digital banking for the public. The next test will be whether the new systems hold up under peak loads, such as salary days and Eid transaction surges, when millions of Pakistanis move money at once.
What has been deployed at the State Bank?
The State Bank has deployed a new core banking network and a software-defined data centre, built by the US technology company Cisco in a multimillion-dollar project.
Who attended the deployment ceremony?
US Chargé d’Affaires Natalie Baker joined SBP Governor Jameel Ahmad and Cisco Pakistan Country General Manager Kashif Ul-Haque at the central bank’s head office in Karachi.
What will the new system do?
It will safeguard monetary stability and ensure reliable digital banking services across Pakistan, on a secure, agile and resilient software-defined data centre.
Was banking disrupted during the migration?
No. The implementation and migration were completed while central banking operations continued without interruption.
