Huge Fee Imposed on ATM Withdrawals from Other Banks
Starting now, withdrawing cash from other banks’ ATMs in Pakistan has become significantly more expensive. Users are no longer paying just Rs 23–25 per transaction—banks have increased the fee to a whopping Rs 35. That’s a nearly 50 percent jump in cost for those who use “off‑us” machines, meaning ATMs outside their own bank’s network.
This hefty fee hike applies across all major commercial banks and is primarily passed onto customers through the inter-bank network 1‑Link, which facilitates ATM withdrawals. While the bulk of the revenue goes to 1‑Link, individual banks also collect a small portion of the fee.
What This Means for You:
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Rs. 35 per withdrawal at any ATM not belonging to your own bank.
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Free withdrawals still available at ATMs owned by your own bank, thanks to regulations from the State Bank of Pakistan
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The scenario warns against withdrawing cash from unfamiliar banks, especially as fees now accumulate faster.
In addition to the fee hike, the Finance Bill 2025–26 introduces a higher withholding tax on sizable cash withdrawals by non‑ATL filers—with the threshold rising from Rs 50,000 to Rs 75,000 and the tax rate increasing to 0.8%, effective July 1, 2025 . This is part of broader efforts to improve tax compliance and further penalize those not on the Active Taxpayers List.
💡 Tips to Avoid Extra Charges:
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Always use ATMs of your own bank to benefit from free withdrawals.
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If withdrawing more than Rs 75,000 in a day, ensure you're registered as a filer (ATL) to avoid hefty withholding tax.
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Choose digital banking or fund transfers when possible to bypass ATM fees and taxes altogether.
At a Glance:
| Transaction Type | Fee / Tax |
|---|---|
| ATM withdrawal at non-host bank | Rs 35 |
| ATM withdrawal at own-bank ATM | Free |
| Withholding tax on non-filer withdrawals > Rs 75,000/day | 0.8% (starting July 1, 2025) |
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