Karachi November 14 2024: Bank Alfalah has introduced new banking regulation imposing a 5% fee on month-end balances of PKR 5 billion or above.
Effective from 15th December 2024, this policy marks a significant shift in how high-net-worth individuals and corporate clients manage their assets.
The policy, outlined in a recent addendum by the Bank, targets accounts with exceptionally high liquidity, a strategy seen as part of avoiding ADR related tax.
The authorities had imposed the tax if the loans by banks to private sector did not exceed 50 percent of their deposits. The measure comes as the South Asian nation wants to boost its revenue as part of the $7 billion loan program with the International Monetary Fund.
Bank Alfalah will be subject to 10 percent additional tax on income generated from government securities if it is not able to increase its ADR from current level of 42 percent to above 50 percent.
