Stop a Debit Card Fee in Pakistan: SBP Says the Annual Fee Starts Only After You Activate the Card
SBP's rules say a debit card annual fee applies only after you activate it, and nothing after a permanent block. See what you can refuse and how to stop a fee.
Short answer: SBP's conduct framework says a bank in Pakistan may charge only the issuance cost, if any, when it issues or renews a debit card. The annual fee can start only after you activate the card. No charge may be taken once the card is permanently blocked. You can also say no to a card.
A fee of Rs 2,000 or more leaves your account in one line of an SMS. A card can sit unopened in a drawer for a year. Under SBP's rules, that fee was not due until the card was switched on.
We read SBP's Business Conduct and Fair Treatment of Consumers Regulatory Framework, issued with BPRD Circular No. 04 of 2025, on 12 October 2026. The card rules sit in its sections 3.2.2 and 3.2.2.1. We did not test any bank's practice, so we say below what the rule says and not what every bank does.
The annual fee starts only after you activate the card
The framework says a bank may charge only the issuance cost, if any, for issuing or renewing a debit or credit card when it receives the application. Any annual fee applies only upon card activation. A card you never activated should not carry an annual fee.
That is the line to hold on to. Issuance cost is a one time charge for making the card. The annual fee is a separate charge for keeping it. Check your bank's schedule of charges for both. The usual yearly fee runs from Rs 2,000 to Rs 3,800 at six large banks, before tax.
No charge may follow a permanent block
The same rule says no charges shall be deducted after the permanent blocking of a debit or credit card. So when you block a card for good, the next annual fee should not be taken for it.
Block it through the app, the helpline or the branch, and keep the reference. If the card is lost, the bank has deadlines of its own for blocking a lost card.
| Situation | What SBP's framework says | Section |
|---|---|---|
| Bank issues or renews your card | Only the issuance cost, if any, at the time of application | 3.2.2 para 1 |
| You have not activated the card | Annual fee applies only upon activation | 3.2.2 para 1 |
| You permanently block the card | No charges after the block | 3.2.2 para 1 |
| Your account is dormant | No card renewal and no card fee until it is reactivated | 3.2.2 para 2 |
| You do not want a debit card | You can opt out of receiving any card | 3.2.2.1 para 1 |
| You want to switch a card on or off | The bank must offer this on its app or internet banking | 3.2.2 para 3 |
You can opt out of a debit card when you open an account
The framework says a bank shall issue a debit card to every new account holder and to customers who have not opted for one before. It then adds that customers shall also be given the option to opt out of receiving any card.
Visually impaired persons and illiterate persons are exempt from mandatory card issuance. If you only use the app, Raast or the branch, say so at the counter. An unused card is still a yearly fee.
Your bank should offer the domestic scheme card first
SBP's text says banks shall offer the SBP approved Domestic Payment Scheme card as the default at issuance or renewal. You should be offered an exclusive domestic card, or a domestic card co-badged with an international scheme. An international only card comes on your written or digital request.
In Pakistan the domestic scheme is PayPak, run by 1LINK. A plain PayPak card works only inside the country, so it fails abroad and on foreign websites. If you pay for foreign apps or travel, ask for a co-badged card or an international one in writing.
Whatever you choose, you can limit it. Banks must let you enable or disable a card for ATM, shop and online use on mobile and internet banking, so you can turn off online and international payments yourself.
A dormant account cannot be charged a card renewal fee
If your account has gone dormant, the bank shall not renew the card or charge any fee related to it until the account is reactivated. That helps a savings account you stopped using.
If a fee came off a dormant account, ask for a reversal in writing. If you want to use the account again, you can reactivate the dormant account first.
How to stop a debit card fee you should not pay
Work through these steps. Keep every reference number.
- Find the fee on your statement and note its date and amount.
- Check the bank's schedule of charges for the card's issuance cost and annual fee.
- Ask whether the card was ever activated. If it was not, say the annual fee cannot apply.
- Ask for a reversal in writing, by email, the app or a branch letter.
- If the bank refuses, ask for the reason and the reference number, then escalate.
The bank must acknowledge a complaint within 48 hours. A complaint that needs 7 working days or fewer is minor, and a longer one is major with a 15 day limit. If the bank does not fix it, complain on the SBP Sunwai portal or take it to the Banking Mohtasib. The same framework bans fees you never agreed to, including charges SBP does not allow.
Common questions
Can a bank charge an annual fee on a debit card I never activated?
Not under SBP's framework. It says the annual fee applies only upon card activation. Ask the bank for a reversal in writing and keep the reference number.
Can I refuse a debit card when I open a bank account?
Yes. The framework says customers shall be given the option to opt out of receiving any card. Say so when you fill in the account form.
Will the bank charge me after I block my card permanently?
It should not. The framework says no charges shall be deducted after the permanent blocking of a debit or credit card.
Is PayPak the default debit card in Pakistan?
SBP's framework says banks shall offer a domestic payment scheme card as the default. PayPak is Pakistan's domestic scheme. A plain PayPak card works only inside Pakistan.
Can my bank renew my debit card if my account is dormant?
No. The framework says banks shall not renew a card or charge any fee related to it until the dormant account is reactivated.
How we verified this
What we checked, where we read it, and what we could not confirm.
Last checked on 12 October 2026. We read sections 2.1, 3.2.1, 3.2.2, 3.2.2.1, 4.5 and 5.1.1 of the SBP Business Conduct and Fair Treatment of Consumers Regulatory Framework. We did not test any bank's actual practice. Your bank's own schedule of charges sets the amounts. Check it before you dispute a fee.
About the author
Global Affairs & Political Economy Writer
Muhammad Hatim is a book lover who started writing because he enjoys it. At Pakistan Era he writes about international relations, geopolitics and the global economy, with a particular interest in South Asia and the forces behind current events.
