Pakistan, June 30 -- The State Bank of Pakistan directed all banks not to freeze accounts without legal grounds and proper authorization. The order strengthens customer protections and prevents unnecessary financial hardship caused by arbitrary account restrictions. Banks nationwide and millions of account holders will be affected by the new compliance requirements.

The directive was submitted to the Islamabad High Court through a compliance report responding to judicial instructions. Earlier, Justice Arbab Muhammad Tahir directed the central bank to establish a clear internal mechanism. Consequently, the SBP developed fresh guidelines for banks across the country. The move aims to improve transparency and ensure lawful handling of accou...