Banks across Pakistan have raised the charges for customers withdrawing cash from ATMs that do not belong to their own bank, pushing the per-transaction fee from the earlier rate of Rs. 23.44 to a new high of Rs. 35. This move means that customers now have to pay nearly 50 percent more every time they use an automated teller machine outside their home bank’s network.
The adjustment in fees has already taken effect, with several commercial banks actively charging their clients at these new rates. According to industry checks, consumers making cash withdrawals from non-host ATMs are now routinely billed Rs. 35 per transaction. This escalation in charges comes after banks recently updated their respective schedules of charges, reflecting the revised fees in official documents that govern their services.
In practice, whenever a customer uses an ATM that does not belong to their own bank to withdraw cash, the transaction goes through a shared interbank network operated by 1-Link, which manages connectivity across financial institutions. A substantial part of this fee is collected by 1-Link for managing the switching and settlement of these interbank transactions. The remainder goes to the bank that owns and maintains the ATM infrastructure used in the transaction.
Industry analysts point out that while the fee increase may appear small on an individual level, it adds up quickly across millions of transactions each month. This means consumers collectively are paying significantly more to access their own money, especially in areas where ATMs from their own banks may not be conveniently available.
Some bankers justify the higher charges by pointing to the operational costs tied to maintaining ATM infrastructure, handling cash replenishments, implementing security protocols, and managing technology upgrades. They argue that inflation and the general rise in business expenses have compelled banks to revisit their pricing models to sustain these services.
However, customers have expressed frustration over the timing of the hike, given that many are already grappling with rising prices in almost all areas of daily life. With living costs continuing to surge, these additional banking fees are adding another strain on household budgets. For many salaried individuals and small business operators who frequently rely on cash, this higher transaction cost makes regular withdrawals more expensive.
Financial sector experts suggest that while ATM interbank fees are regulated under broader guidelines, banks still have leeway to revise their own schedules of charges, provided they follow disclosure requirements and notify customers appropriately. The recent adjustments were documented in updated fee schedules circulated by commercial banks in compliance with regulatory norms.
This development highlights how the cost of accessing routine banking services continues to climb, and underscores the importance of customers carefully reviewing their bank’s fee structures to manage avoidable expenses. It also places fresh attention on the need for broader financial literacy, so that consumers can explore alternative digital payment options or plan their cash withdrawals strategically to minimize costs.