With Eid-ul-Fitr, one of the biggest religious festivals, just around the corner, there has been a surge in demand for cash withdrawals, leading to banks and ATMs running out of cash in many parts of the country.
Banks and ATMs Running Out of Cash Due to Increased Demand
As Eid is a time when people typically give gifts and cash to friends and family, the demand for cash withdrawals has increased significantly in the past few days. However, many people are finding it difficult to withdraw cash as banks and ATMs are running out of cash due to the high demand. Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said currency inflows in Ramazan are higher and more cash is needed to facilitate customers.
Reports suggest that banks are intentionally retaining cash for as long as possible in order to profit from it; this approach has become increasingly prevalent over the past few months, with most banks engaging in this practice. Zafar Paracha said that inflows could be 15-20 percent higher due to Zakat and charity, but he couldn’t explain why local banks were running out of the Pakistani Rupee.