ATM Cash Shortage Hits Pakistan as Ramadan Begins

As Ramadan commenced, a widespread cash shortage hit ATMs across Karachi and other cities in Pakistan, leaving frustrated customers scrambling for withdrawals. The crisis emerged as citizens rushed to access funds for shopping and daily expenses, further compounded by the closure of banking services for Zakat deductions.

The Central Ruet-i-Hilal Committee confirmed that the Ramadan moon was not sighted on Friday, setting the first fasting day for Sunday (today).

By Saturday evening, long queues formed at ATMs, with many machines running out of cash. The situation worsened on Sunday morning, as it coincided with a weekly bank holiday, restricting cash replenishment.

A banking insider, speaking anonymously, attributed the crisis to the mass withdrawals at the start of Ramadan, coupled with anticipated Zakat deductions. "Since today is Sunday, banks can't restock ATMs," they explained.

A United Bank Limited (UBL) representative confirmed that customers were pre-informed about a temporary suspension of withdrawals from midnight to 10 a.m. on March 2 due to Zakat processing. UBL had also announced that its digital banking services, including mobile apps, internet banking, debit/credit cards, and ATMs, would be unavailable during this period.

According to the State Bank of Pakistan’s (SBP) Payment System Review for 1QFY25, the country has 19,170 ATMs as of September 2024. However, with banks remaining closed for public dealings on Monday, further disruptions are expected.

At the time of reporting, official statements from the SBP and other commercial banks on resolving the crisis were still awaited.