KARACHI: In a major regulatory move following a landmark ruling by the Islamabad High Court, the State Bank of Pakistan (SBP) has strictly prohibited all commercial banks across the country from freezing citizens’ accounts without explicit legal justification or rigorous prior verification. Acting upon the judicial directives issued by Justice Arbab Muhammad Tahir, the central bank has rolled out comprehensive new guidelines instructing financial institutions to immediately halt the practice of blocking accounts arbitrarily or merely as a precautionary measure. The SBP emphasized that imposing such unnecessary restrictions inflicts severe financial harm on account holders, underscores a zero-tolerance policy toward unauthorized freezes, and aims to firmly safeguard ordinary depositors from undue operational distress.
