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.
Of the new Rs35 interbank ATM fee, the acquiring bank — which owns the ATM — will receive the bulk (Rs28) to cover operational and maintenance costs, while 1LINK, the interbank network facilitating ATM connectivity, will collect Rs7.
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.
