Islamabad, June 27, 2025: From July 1, banks throughout Pakistan will limit cash withdrawals for individuals who are not listed as active taxpayers, as outlined in the updated Finance Bill 2025-26. Based on the revised Section 114C of the bill, named “Restriction on economic transactions by certain persons,” banks will prohibit non-filers from taking out more than a set amount in cash.
The specific cap will be detailed in the Fifteenth Schedule of the Finance Bill, which has yet to be made public.
Previously, authorities had recommended that banks should neither open nor operate accounts for non-filers, with the exception of Asaan Accounts and accounts for pension recipients.
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The Federal Board of Revenue (FBR) now has the authority to temporarily freeze the accounts of non-filers for up to three days.
They had also proposed limits on cash access, but the current draft sharpens the directive by placing a clear restriction on withdrawals exceeding a designated threshold.
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Another major revision in the Finance Bill concerns retirees. Pension and annuity earnings (considered under “income from other sources”) will now be subject to taxation according to the updated rates listed in the new tax schedule.
This initiative is part of the government’s broader strategy to enforce stricter oversight on non-filers and enhance tax compliance.
