The State Bank of Pakistan (SBP) has officially announced that Tuesday, July 1, 2025, will be observed as a bank holiday, marking the beginning of the new fiscal year 2025–26. As per the notification issued, all commercial banks, development finance institutions (DFIs), and microfinance banks (MFBs) across the country will remain closed for public dealing on that day.
This closure is part of the annual fiscal transition process observed in Pakistan’s financial and banking ecosystem. Each year, the first working day of the new fiscal year is designated as a bank holiday to allow financial institutions to close their books, reconcile accounts, and finalize operational adjustments required for the start of the new fiscal cycle. The measure is intended to ensure that all internal processes, reporting, and regulatory requirements are completed smoothly and without disruption to customer services.
Despite the closure for public transactions, all employees of banks, DFIs, and MFBs will be required to attend their respective offices as usual. Normal office hours will apply for internal administrative and operational tasks, including end-of-year reconciliation, internal audits, and compliance checks aligned with regulatory guidelines from the SBP.
The central bank’s annual directive is not new to the banking sector and is considered a routine part of financial year-end activities. However, customers are advised to plan their banking transactions accordingly to avoid any inconvenience. Digital banking platforms, ATMs, and online services are expected to remain operational, although certain account services or interbank transactions may experience delays due to the backend processing associated with the fiscal year transition.
Banking industry insiders noted that the closure is also a critical period for banks to reset financial data, reconcile ledger balances, and prepare new reports required by both SBP and external auditors. It is a backend-heavy day that plays a foundational role in maintaining transparency and operational efficiency in the financial sector.
While physical branches will not be entertaining customers on July 1, bank employees will focus on closing tasks from the outgoing fiscal year, including reporting final financial positions, computing tax statements, and preparing updates for regulatory compliance.
The fiscal year 2025–26 is anticipated to bring further digitization in banking services, regulatory adjustments in line with macroeconomic conditions, and a stronger focus on risk management and governance. With the upcoming year’s policies set in motion from July 1, the temporary one-day suspension of public banking services is viewed as a procedural step in ensuring a smooth transition into the new financial cycle.
As Pakistan’s financial institutions navigate both global headwinds and domestic economic priorities, structured processes such as the fiscal year-opening bank holiday continue to reinforce operational discipline in the banking ecosystem. Customers are encouraged to complete any urgent transactions before the holiday and utilize digital channels where possible during the brief closure.