The State Bank of Pakistan (SBP) has directed all banks not to freeze, debit block, or impose any restriction on operations of any bank account without obtaining permission from the competent authority, it was reported on Tuesday.
State Bank of Pakistan directed to ensure account holders do not suffer losses due to inadvertent or precautionary restrictions.
The State Bank stated that after the necessary verification process will be completed before taking any action against any account holder. They can also devise appropriate internal mechanisms to ensure full compliance with the bank’s instructions.
This was stated in a State Bank report submitted in the Islamabad High Court regarding implementation of court’s earlier order.
Earlier on June 14, 2026, the Islamabad High Court (IHC) ruled that banks cannot block or freeze customers’ accounts without a verified legal basis, directing financial institutions to act strictly in accordance with the law when restricting access to funds.
The order was issued by Justice Arbab Muhammad Tahir while hearing a petition filed by a citizen whose account had been unilaterally blocked by a private bank during an inquiry by the National Cyber Crime Investigation Agency (NCCIA).
According to the six-page written judgement, the bank later admitted that it had blocked the account without proper justification.
