Financial products and services play a crucial role in enabling consumers to build their financial resilience, seize opportunities, and meet essential needs. However, consumers also face a range of risks when engaging with such financial offerings. State Bank of Pakistan (SBP) recognizes Consumer Protection as a critical regulatory agenda that directly contributes to Financial Stability. In addition to prudential supervision, SBP places significant emphasis on monitoring business practices and conduct of REs' (i.e. Banks/DFIs/MFBs/ECs/EMIs) to safeguard the interests of their customers. To promote Fair Treatment of Customers (FTC), enhance disclosure, ensure transparency, and strengthen the effectiveness of the FTC regime, SBP has established a dedicated department for Conduct Supervision called Consumer Protection Department (CPD).

The objective of the Consumer Protection Department is to enhance Consumer Protection and foster sound market behavior through effective and efficient oversight of REs’ conduct. The department is committed to providing protection to banking consumers in line with international standards by implementing robust and effective conduct supervision through supervisory tools, and assessment frameworks. It also aims to achieve transparency, better disclosure, encourage competition in the marketplace and promote fair practices.

CPD's mandate is to strengthen FTC while promoting responsible banking conduct through effective and efficient oversight. This includes collecting, analyzing, and profiling conduct data of Regulated Entities (REs), implementing the conduct supervisory framework in line with global trends and local needs, facilitating consumer redressal of grievances against REs in accordance with applicable legal frameworks, and engaging with relevant stakeholders to supplement conduct supervision and consumer protection.