The Securities and Exchange Commission of Pakistan (SECP) has allowed HugoBank Limited to commence pilot operations and approved a fresh equity injection of Rs. 1.5 billion through the issuance of shares to its sponsor shareholders. The additional capital will help HugoBank meet the State Bank of Pakistan’s (SBP) minimum capital requirement, a key regulatory condition for progressing toward commercial banking operations. HugoBank has already secured the SBP’s in-principle approval to establish a digital retail bank in Pakistan. Unlike conventional banks, digital retail banks operate primarily through mobile apps and online platforms instead of physical branches.