Banks directed not to freeze accounts without legal authority: IHC told

The State Bank of Pakistan (SBP) has directed all banks not to block customers' bank accounts without lawful authority, approval of the competent authority and proper verification, according to a compliance report submitted before the Islamabad High Court (IHC)

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 30th Jun, 2026) The State Bank of Pakistan (SBP) has directed all banks not to block customers' bank accounts without lawful authority, approval of the competent authority and proper verification, according to a compliance report submitted before the Islamabad High Court (IHC).

The report, filed in compliance with the court's directions, stated that banks have been instructed that restrictions on any bank account might only be imposed after fulfilling all legal requirements and obtaining approval from the competent authority.

The SBP further directed banks to ensure that account holders did not suffer losses due to arbitrary or precautionary restrictions imposed without legal justification.

The report was submitted following earlier directions of the Islamabad High Court, which had already restrained banks from freezing accounts without legal authority and prior approval of the competent authority.