KARACHI — Banks across Pakistan have increased the fee for withdrawing cash from ATMs not owned by the cardholder’s bank, with charges rising from Rs23.44 to Rs35 per transaction, effective July 2025.
The hike, reflected in revised bank fee schedules and currently being implemented, affects millions of customers nationwide who rely on non-host ATMs — a common practice in areas with limited access to the user’s own bank network.
The bulk of the new Rs35 fee will be collected by 1Link, the interbank network that connects ATM services across the country, while the ATM-owning bank will receive a smaller share to cover operational and maintenance costs.
Banking sector representatives have attributed the increase to rising interbank transaction costs and higher equipment servicing expenses. However, the timing has sparked criticism, as it comes during a period of elevated inflation, growing utility bills, and overall economic pressure.
The move disproportionately impacts those in underserved and rural areas, as well as low-income earners and daily wage workers who often withdraw smaller sums more frequently. For these individuals, accessing their own funds now incurs a noticeably higher cost.
The adjustment has reignited debate about financial inclusion and access to basic banking services, as customers navigate a challenging economic landscape where even routine transactions carry an added burden.
