Overview
- The State Bank of Pakistan filed a compliance report with the Islamabad High Court and issued a revised circular to all commercial banks on June 30, 2026, formalizing the new rules on account restrictions.
- Under the directive, any debit block, operational restriction, or account freeze must rest on a valid legal basis, approval from a competent authority, and proper verification of facts.
- Banks have been ordered to stop precautionary or arbitrary freezes that can disrupt access to money and to create standard operating procedures and internal controls to ensure uniform compliance.
- The move answers a court order from Justice Arbab Muhammad Tahir that directed the SBP to devise a clear mechanism to prevent unlawful account restrictions.
- The guidance aims to protect millions of account holders from wrongful hardship, but the SBP has not yet published enforcement metrics, penalties, or a timeline for reviewing banks’ implementation so those details should be watched next.