SBP directs banks not to block accounts without lawful authority
ISLAMABAD: The Islamabad High Court (IHC) was apprised on Tuesday that 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.
A compliance report was submitted before a single bench of Justice Arbab Muhammad Tahir. According to it, the central bank has instructed all the banks across the country to ensure that no account is blocked unless there is a lawful reason supported by authorisation from the relevant competent authority and due verification of the case.
Justice Arbab in the last hearing had directed the SBP to establish an internal mechanism and issue comprehensive guidelines to prevent arbitrary actions by financial institutions.
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In response, the SBP issued a fresh set of instructions to all banks, emphasising that account holders should not suffer losses or inconvenience due to unintentional or precautionary restrictions imposed without sufficient legal justification.
The report stated that the 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.
Separately, another IHC bench appointed a commission to inspect construction work on the Bhong Interchange along the Multan-Sukkur Motorway and directed the National Highway Authority to submit a report on the project’s progress.
In this regard, Justice Muhammad Asif issued the order while hearing a petition seeking implementation of a Supreme Court ruling regarding the construction of the interchange.
The commission has been directed to visit the project site and report to the court on the extent of construction completed. The court also sought a detailed progress report from the National Highway Authority (NHA).
During the hearing, petitioner’s counsel Waqar Rana argued that only Rs100 million had been allocated for the project in the current federal budget, alleging that authorities had delayed its completion for the past four years.
He asserted that construction work was continuing, but payments to the contractor were not being cleared and urged the court to direct the government to allocate sufficient funds.
Justice Asif questioned NHA officials over the pace of the project, asking why the work was not being completed. Representing the NHA, counsel told the court that about 65 percent of the project had been completed and that no contractor payments were pending. He said the authority received Rs400 million for the project last year and had requested Rs1.10 billion for the current fiscal year.
He added that the road portion had already been completed and construction was progressing. The petitioner’s lawyer disputed the claim, maintaining that the project had remained stalled for four years. The NHA responded that construction began in October 2024 and was progressing according to schedule.
The officials from the Planning Division informed the court that their report had already been submitted and that the division was responsible for releasing funds, while execution of the project rested with the NHA.
After directing the NHA to submit a comprehensive report, the court adjourned further proceedings.
Copyright Business Recorder, 2026