SBP asked to fix banking gaps after complaints of …

Islamabad: The State Bank of Pakistan (SBP) came under pressure in the Senate after lawmakers raised concerns over complaints from customers, including Politically Exposed Persons (PEPs), who faced difficulties with commercial banks and alleged delays in resolving their issues.

The Senate Standing Committee on Finance and Revenue questioned why banks and the SBP failed to establish clear and uniform procedures despite earlier directions to create dedicated officers and better complaint handling systems.

During the meeting, Member National Assembly Muhammad Moin Amir Pirzada informed the committee that his bank account was closed in April 2026 and despite repeated communication with the concerned bank and the State Bank of Pakistan, he did not receive a satisfactory response.

He told the committee that such situations show the need for a proper yearly data update system and clear banking procedures so customers do not face unnecessary difficulties. The committee learned that no common Standard Operating Procedures had been developed across the banking sector despite previous recommendations.

Governor State Bank acknowledged the concerns and informed the committee that rules for dealing with Politically Exposed Persons already exist. He said the problem occurred at the branch level and assured lawmakers that steps would be taken to improve implementation.

The Governor informed the committee that a backup officer had already been assigned and a dedicated focal person would also be appointed to handle such matters. The committee stressed that all banks must follow the same procedures so customers receive equal treatment and complaints are resolved quickly.

Federal Minister for Finance also supported the need for standard procedures and said proper systems are necessary for better customer service and effective complaint resolution. The committee meeting, chaired by Senator Saleem Mandviwalla, also discussed wider banking issues including customer charges, investment policies and employee matters.

Members raised concerns about banking service charges, especially SMS alerts and card transactions. The State Bank Governor informed the committee that SMS alerts are optional, allowing customers to choose whether to use the service.

He said banks are also introducing alternative options such as mobile application and email alerts for customers. The Governor clarified that Visa card transactions conducted within Pakistan would not be charged in US dollars.

He also informed the committee that banks are currently covering around Rs80 billion annually under the Pakistan Remittance Initiative. Committee members appreciated the reforms under the initiative, stating these steps have helped save significant costs.

The committee also discussed complaints regarding dress code instructions in some banks. Senator Dr. Zarqa Suharwardy Taimur raised concerns that some female employees were allegedly pressured to wear abayas.

Senator Sherry Rehman stated that no employee should be forced to adopt a specific type of clothing. The State Bank Governor informed the committee that previous recommendations had already been communicated to banks.

He clarified that the committee had only recommended a modest dress code and had not ordered banks to impose any particular clothing.

The committee directed all banks to submit their human resource dress code policies and instructed SBP to issue updated guidelines to ensure employees are not placed under unnecessary pressure.

The committee also reviewed concerns related to investment protection policies. Senator Manzoor Ahmed suggested that incentives provided to the Reko Diq project should also be considered for other investment projects in Pakistan.

Finance Ministry officials informed the committee that only one project currently meets the existing criteria and the government’s financial position does not allow similar benefits for all projects.

The Finance Minister assured the committee that future proposals would be reviewed according to available resources.