Business Desk 
Nov 16, 2024
The Bank Alfalah Limited (BAFL) has introduced new banking regulations imposing a 5% fee on high-value bank accounts.
Effective December 15, 2024, this policy change has been updated in the BAFL’s existing schedule of charges for the period July to December 2024.
BAFL new regulations
Under the new regulations, the Bank Alfalah will be deducting a 5% monthly fee, i.e., approximately Rs250 million per month, from high-end accounts with a minimum deposit of Rs5 billion or above.
Read more: Bank Alfalah retreats with Samba Bank acquisition
This development has stemmed as a result of the federal government’s 16% tax on banks with an Advance-to-Deposit Ratio (ADR) of less than 50%. Banks are looking to avoid paying the big ADR tax and could go to any legal lengths seeking cover.
The government has introduced this measure as part of its efforts to enhance revenue generation, in line with the requirements of its $7 billion loan agreement with the International Monetary Fund (IMF).
However, a dozen banks in Pakistan have received temporary relief from the Islamabad High Court, blocking the government’s new tax.
It is important to note that the BAFL will be subject to a 10% additional tax on income generated from government securities if it doesn’t increase its ADR from the current level of 42%.
