Non-Host ATM Charges Increased: How will it affect your wallet?

Karachi – Saturday, August 23, 2025: Commercial banks across Pakistan have raised the withdrawal charges for non-host ATMs. The fee, which was previously Rs. 23.44, has now gone up to Rs. 35 per transaction.

Under the new structure, Rs. 28 will go to the bank that owns the ATM, while Rs. 7 will be given to 1LINK, the interbank ATM network. Banks say the decision was made because of higher operating and maintenance costs. But for many customers, especially low-income groups, this hike feels like an extra burden.

According to the State Bank of Pakistan (SBP), the older rate of Rs. 23.44 had been in place for years. The sudden increase of more than 49% is now being seen as a major financial impact on everyday users.

Some banks, however, are trying to ease the pressure. Habib Bank Limited (HBL) has offered relief in its new Schedule of Bank Charges (SOBC). Customers with an HBL Freedom Account or HBL Work Account who maintain a monthly balance of Rs. 40,000 or more will not have to pay these charges. Their non-host ATM transactions will remain free from July to December 2025.

For many salaried people, though, this is still a tough change. Mohammad Ashfaq, an employee at a private firm with a salary of Rs. 45,000, explained his struggle. “Sometimes my bank’s ATM is not nearby. In such cases, I have to use another bank’s ATM. With this new Rs. 35 charge, every withdrawal feels heavier on my pocket,” he said.

He added that families already face rising living costs. Now even small transactions are becoming more expensive. “People like me will have to cut down on withdrawals or travel extra to find their own bank’s ATM. But in emergencies, we have no choice.”

This change is expected to push many customers to plan their cash withdrawals more carefully. Banking experts believe the hike may also encourage digital transactions and mobile banking, but for those who depend on cash, the impact is unavoidable.