The State Bank of Pakistan (SBP) has officially announced that all banks, including SBP offices, will remain closed to the public on Tuesday, July 1, 2025, due to the annual financial year-end bank holiday. This closure is part of the traditional procedure followed at the close of every fiscal year to facilitate internal account settlements and final financial reconciliations.
According to a circular issued on Friday, the central bank emphasized that while public-facing services will be suspended for the day, bank staff will still be on duty. The purpose is to carry out critical back-end financial operations, including the settlement of accounts, final reconciliations, and year-end closing tasks, which are essential for entering the new fiscal year smoothly and accurately.
The SBP stated, “This closure is part of the routine procedure to ensure the smooth closing of books and proper financial reconciliation across the banking sector.” It also reassured that this measure is taken in the interest of financial integrity and efficiency, and has been standard practice for decades.
Banking Services Before and After the Holiday
The SBP clarified that normal banking operations will continue uninterrupted on Monday, June 30, 2025. However, following the July 1 holiday, banks will resume regular services on Wednesday, July 2, 2025, after the weekend break observed on Saturday and Sunday.
This annual closure is not a public holiday in the conventional sense, as it is specific to banking operations and does not apply to other sectors. It allows banks to complete essential internal work without public interruption, including:
- Final ledger adjustments
- Audit preparations
- System updates
- Compilation of financial reports
- Reconciliation of year-end balances
The SBP’s directive applies uniformly to all commercial banks, microfinance institutions, Islamic banks, and development finance institutions (DFIs) operating in Pakistan.
Digital Banking Services Unaffected
While physical branches will remain closed on July 1, most digital and online banking channels, including ATMs, mobile banking apps, internet banking, and phone banking services, are expected to remain operational. However, customers should be aware that interbank transfers and some internal reconciliations may be delayed due to the holiday.
Customers planning to conduct cash transactions, cheque clearances, account updates, or other branch-related activities are advised to complete these tasks before the end of business hours on Monday, June 30.
A Routine but Important Pause
The annual July 1 bank holiday aligns with global financial best practices and reflects the importance of accurate, audited, and transparent financial records in the national banking system. Financial institutions utilize this pause to finalize documents, ensure compliance with fiscal regulations, and prepare reports that are later submitted to regulators, shareholders, and auditors.
The move also provides the SBP with a consolidated overview of the banking sector’s financial standing, which can then inform policy decisions and regulatory oversight for the coming year.
The State Bank has advised customers and businesses to plan their financial activities accordingly, especially those involving large fund transfers, payments, or banking deadlines. For companies managing payroll or vendor payments that coincide with month-end, the SBP recommends initiating transactions early to avoid any delays.
The July 1 financial year-end holiday is a well-established and procedural event, and not an emergency or special announcement. It is observed annually to maintain the structural discipline of Pakistan’s financial calendar.
For any additional information or queries, customers are encouraged to visit the official websites of their respective banks or contact customer service helplines.
Banks across Pakistan will take a brief but essential break from public services on Tuesday, July 1, allowing financial institutions to perform year-end operations smoothly. Normal services will resume on July 2, ensuring the banking sector enters the new fiscal year on a firm, well-audited foundation.
