Pakistan Pushes for Stronger Cyber Defences in Banking Sector Amid Rising AI Threats

By Sabeeh Zanair :

Finance Minister Muhammad Aurangzeb has called for an urgent and comprehensive review of cybersecurity frameworks across Pakistan’s financial sector, warning that evolving digital threats require coordinated and immediate action.

Chairing a high-level virtual meeting, Aurangzeb directed the State Bank of Pakistan and the Pakistan Banks’ Association to identify gaps in cyber risk management and assess institutional preparedness across banks and financial systems.

The meeting brought together senior leadership from commercial banks, including chief executives and chief information security officers, alongside regulators such as the central bank and the Pakistan Virtual Asset Regulatory Authority.

Officials highlighted the growing sophistication of cyber threats, particularly the emergence of AI-powered tools capable of detecting system vulnerabilities and launching complex, multi-stage attacks at unprecedented speed. Digital banking platforms, payment systems and core financial infrastructure were identified as key areas of exposure.

The discussion also drew on international trends, noting increased cyber risks in countries such as Japan and India, where financial ecosystems have faced attacks targeting interconnected digital systems. Participants said these developments underline the urgency of strengthening Pakistan’s own cyber resilience.

Aurangzeb emphasised the need for closer coordination between regulators, financial institutions and technical teams to develop practical and actionable measures. He stressed that improving threat intelligence sharing, addressing weaknesses in legacy systems and aligning policies with global standards must be prioritised.

Participants agreed that while policy direction is important, effective implementation will be critical. Clear institutional responsibilities and timely execution of cybersecurity measures were identified as essential to protecting the country’s financial ecosystem.

As Pakistan accelerates financial digitisation, the minister warned that cybersecurity can no longer be treated as a secondary concern but must remain central to economic and financial stability.