Karachi: Bank customers across Pakistan will now face increased charges for withdrawing cash from ATMs not belonging to their own bank, sparking frustration and concern among account holders.
Effective July 2025, the per-transaction fee for using another bank’s ATM has jumped from Rs. 23.44 to Rs. 35.00, a significant increase that many see as an added burden, especially during tough economic times.
Major commercial banks, including Meezan Bank and MCB Islamic Bank, have already updated their official schedule of charges to reflect the higher fee. The new rate applies only to interbank ATM transactions—customers will still be able to withdraw free or at lower cost from their own bank’s ATMs.
The fee increase largely benefits the 1-Link network, which manages interbank transaction routing, with a smaller portion going to the bank that owns the ATM used. Bank representatives argue that the hike is necessary to cover network fees, maintenance costs, and infrastructure upgrades.
However, critics warn this move could hit customers without easy access to their own bank’s ATMs the hardest, particularly in rural areas and densely populated urban zones. Many people regularly withdraw small amounts multiple times per month—a practice that will now become significantly more expensive under the new rate.
Consumer advocates have called on the State Bank of Pakistan to review and regulate such fee increases to ensure fair access to banking services, especially at a time when people are already struggling with high inflation and rising living costs.
