Customers across Pakistan are now facing higher charges when withdrawing cash from ATMs that don’t belong to their own bank. The fee for using non-host ATMs has been increased from Rs. 23.44 to Rs. 35 per transaction. A significant jump of nearly 50 percent.

According to updated schedules of charges published by various commercial banks, the new fee structure is already in effect. This means that customers making a withdrawal from another bank’s ATM will automatically be charged the higher amount.

The revised charges are part of a broader adjustment by the banking sector, with all major banks updating their service tariffs accordingly. While the hike may seem like an additional burden for consumers, especially those without easy access to their own bank’s ATM network, the fee is divided between the infrastructure provider and the bank operating the ATM.

The bulk of the Rs. 35 fee goes to 1Link (Pakistan’s interbank switch system) which facilitates transactions between different banks. The remaining amount is pocketed by the ATM-owning bank as a service charge for providing access to its machine.

For customers in areas with limited ATM coverage from their own banks, this increase means higher costs for a basic transaction. It also highlights a broader issue within Pakistan’s banking system: the need for greater interoperability and affordable digital banking access.

While digital wallet usage is growing in Pakistan, cash remains the dominant medium, especially for everyday transactions. With rising inflation and fuel prices already squeezing household budgets, even small increases in fees like these can add up over time for regular users.

As always, customers are advised to check their bank’s latest schedule of charges and plan their withdrawals accordingly to avoid unnecessary fees.