Hyderabad traders cry foul over prolonged freezing of business accounts

Small traders and businessmen in Hyderabad have raised serious concerns over what they describe as the unwarranted and open ended holding of funds in business bank accounts, warning that the practice is triggering acute cash flow problems and financial stress across the trading community.

The issue was taken up formally when Hyderabad Chamber of Small Traders and Small Industry Vice President Shan Sehgal met State Bank of Pakistan Hyderabad Assistant Manager Adil Zahoor. During the meeting, Sehgal highlighted the difficulties faced by traders and small industrialists due to funds being withheld without written explanations, regulatory references or clear timelines for release.

He stressed that the freezing of legitimate business funds was disrupting routine commercial activity, undermining working capital cycles and eroding confidence among businessmen already operating under tight financial conditions.

In response, SBP Assistant Manager Adil Zahoor assured the chamber representative that such complaints would be treated with seriousness. He said strict action, including the imposition of penalties, would be taken against any commercial bank found responsible for unjustified delays or violations.

Zahoor further noted that the State Bank had already instructed all commercial banks to conduct special awareness sessions at the Hyderabad Chamber secretariat. These sessions would focus on Islamic banking, anti money laundering and countering financing of terrorism regulations, along with other key banking procedures, to improve traders’ understanding of compliance requirements.

Sehgal urged the central bank to accelerate the resolution of transaction related complaints and ensure that lawful business funds were not subjected to unnecessary holds. He expressed optimism that the SBP’s assurances would translate into quicker redressal of issues, renewed business confidence and stronger economic activity in the region.