State Bank of Pakistan restricts bank account freezes

The Pakistan — State Bank of Pakistan has issued new directives to all Commercial banks, prohibiting them from blocking, freezing, or restricting customer accounts without clear legal authority, proper approval, and thorough verification. This move follows instructions from the Pakistan — Islamabad High Court, which had expressed concerns over arbitrary account freezes. The new guidelines aim to strengthen customer protection, promote transparency in banking operations, and ensure that restrictions on bank accounts are imposed only in accordance with the law and due process. Commercial banks are now required to conduct proper due diligence and strengthen their internal systems to comply with these regulations, ultimately reinforcing public confidence in Pakistan's banking system.