KARACHI: Automated Teller Machines (ATMs) across Pakistan have run out of cash as citizens rushed to withdraw money ahead of the bank holiday on March 3, 2025, designated for Zakat deduction.
The sudden surge in cash withdrawals has left many ATMs dry, particularly in Karachi and other major cities.
A significant number of ATMs became non-operational as people hurried to access funds for shopping and household expenses, coinciding with the beginning of Ramadan. The Central Ruet-i-Hilal Committee confirmed that the Ramadan moon was not sighted on Friday, meaning that the first fast would be observed on Sunday (today). This announcement triggered a wave of cash withdrawals, leading to a severe shortage in ATM availability.
Long queues formed outside ATMs on Saturday evening and continued into Sunday morning, despite it being a weekly off day for banks. Customers faced frustration as they visited multiple ATMs in search of cash, only to find them empty. Many expressed concerns over the inconvenience, especially as banks would remain closed on Monday for Zakat deduction purposes, further limiting access to cash.
“Perhaps the influx of people using ATMs at the start of Ramadan caused the machines to run empty,” a banker, speaking anonymously, told a local newspaper. “Today is Sunday, and since banks are closed, cash cannot be replenished.”
The banker also noted that some people withdraw their money in advance to avoid automatic Zakat deductions. Meanwhile, with more ATMs expected to run out of cash, concerns have grown over accessibility to funds in the coming days.
A United Bank Limited (UBL) official said that the bank had issued prior warnings through social media, informing customers that cash withdrawals would be unavailable on Sunday from 12 AM to 10 AM due to Zakat deduction processing. A post on a social platform stated: “All digital channels, including the UBL Digital App, internet banking, debit and credit cards, and ATM services, will not be available on Sunday, 2nd March 2025, due to Zakat deduction activity.”
According to the State Bank of Pakistan’s (SBP) latest quarterly report on the Payment System Review for 1QFY25, Pakistan had 19,170 ATMs as of September 2024. A response from the SBP and other commercial banks regarding the cash shortage was still awaited at the time of reporting.