KARACHI: A significant number of automated teller machines (ATMs) in Karachi and across Pakistan experienced cash shortages as the holy month of Ramadan began, with many people rushing to withdraw money for shopping and household expenses.
The Central Ruet-i-Hilal Committee confirmed that the Ramadan moon was not sighted in Pakistan on Friday, marking the first day of fasting to fall on Sunday (today).
Long lines formed outside ATMs on Saturday evening and Sunday morning, which was also a weekly off day for many.
The cash shortage left numerous customers frustrated as they were forced to visit multiple ATMs in search of cash. Further complications are expected as ATMs may run out of funds again, with public dealings in banks remaining closed on Monday for Zakat deduction.
A banker, speaking on the condition of anonymity, explained, “The influx of people at ATMs at the start of Ramadan could be the cause of the cash shortage.” They also noted that “since today is Sunday, cash deposits cannot be made due to the holiday,” and added, “People may also be withdrawing cash in anticipation of the Zakat deduction.”
A United Bank Limited (UBL) official confirmed to Business Recorder that customers had been notified in advance that they would be unable to withdraw cash from 12 a.m. to 10 a.m. on Sunday, March 2, due to Zakat processing. A post on UBL’s social media channels stated, “All digital services, including UBL Digital App, internet banking, debit and credit cards, and ATMs, will be unavailable during this period.”
As of September 2024, Pakistan has a total of 19,170 ATMs, according to the State Bank of Pakistan’s (SBP) quarterly report on the Payment System Review for 1QFY25.
At the time of reporting, responses from the SBP and other commercial banks regarding the ongoing cash shortage were still awaited.
