Massive withdrawal of Rs 700 billion reported from Pakistani Banks

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Massive withdrawal of Rs 700 billion reported from Pakistani Banks

Banking industry’s deposits have declined by Rs. 710 billion in July, mainly due to customers panicking and withdrawing money from their accounts due to FBR’s recent tax reforms.

ISLAMABAD - Massive withdrawal of Rs 700 billion reported from Pakistani Banks in thirty days time period.

State Bank of Pakistan’s (SBP) report says that deposits of banking industry decreased to Rs. 13.747 trillion in July 2019 from Rs. 14.45 trillion in June 2019.

According to the bankers link, a significant number of customers withdrew their savings, including local currency and foreign currency, to avoid getting on FBR’s radar. The tax authority has taken a number of strict measures over the past few months, causing people to withdraw their money from the banks.

FBR had asked the banks to share the data of customers with over Rs. 0.5 million in their accounts (savings and current accounts both). These customers will be asked for their source of income and income declaration to the tax authority.

Banks, so far, have only shared the record of savings accounts with the tax authority.

Tag: FBR, Pakistani Banks

Economy