Banks raise ATM withdrawal fee to Rs35

July 03, 2025 (MLN): Banks across Pakistan have increased the fee for cash withdrawals at ATMs not operated by the cardholder’s own bank, effective July 2025 a move that directly affects millions of account holders nationwide.

The cost per transaction has been revised from Rs23.44 to Rs35.00, sparking concern among consumers already dealing with economic pressure..

The revision applies exclusively to non-host ATM usage a widespread practice, especially in areas with limited access to the cardholder’s own bank network.

The revised charges have been included in the latest bank fee structures, and implementation is underway.

The larger portion of this fee goes to 1-Link the network that connects ATMs across the country while the ATM-owning bank receives only a minor share, mostly to cover equipment servicing and operational upkeep.

For many, particularly those in underserved or rural regions, the change adds an extra burden. Individuals withdrawing smaller amounts more frequently, including fixed-income earners and daily wage workers, may now face significantly higher costs to access their own funds.

Banks have attributed the adjustment to rising operational expenses and evolving interbank transaction arrangements. However, the timing of the hike has drawn criticism.

As inflation continues to erode purchasing power and utility bills rise, customers now face an added cost for routine banking transactions.

The hike underscores a growing challenge for consumers: managing basic financial activities without incurring additional charges. In a tough economic climate, even the act of withdrawing cash has become costlier.

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