Why are Pakistani banks charging high dollar rate on credit card transactions?

Web Desk 10:09 PM | 2 Jan, 2023
Why are Pakistani banks charging high dollar rate on credit card transactions?

A recent announcement by Meezan Bank, Pakistan’s first Islamic banking institution, about the exchange rate has sparked an outrage on social media, with many customers venting their anger on the bank and vowing to stop using its services.

The development comes at a time when the Pakistani currency has gone into free fall against the US dollar. This situation has created dollar shortage in Pakistan and now banks are buying high-demand currency from open market to make payments.

Amid the shortage, several money exchange companies are offering the foreign currency Rs 25-30 above the market rate.

In a recent post, Meezan Bank said, “We would like to inform you that Banks can only settle Debit/Credit Card transactions on international merchants/websites by purchasing dollars from the open market. Hence, the conversion rate on these transactions is applied according to the prevailing open market rate, which may differ from the rate displayed on the international merchant website.”

With the recent announcement, Meezan Bank customers are charged a conversion rate of Rs250 or above, forcing many customers to take to social media to express their anger.

“This is not how banks usually operate. This means govt has restricted trading in inter bank market to show dollar is stable. For every other thing, banks will go to open market to purchase dollars. Or Meezan Bank here is just lying. And extorting money from consumers,” an angry user tweeted on Friday.

Others called it a disaster, saying dollar is expected to reach Rs 300.

Another user wrote, “Meezan Bank is overcharging 10 pecent extra fraud tax along with other mention 5.5% tax, so accumulated 15.5% huge tax by Meezan, All other bank charging 5.5% only."

Here’s how other people complained about the recent move of Meezan Bank.

Meezan Bank has yet to respond to the criticism on social media.

Web Desk
Web Desk

Daily Pakistan Global Web Desk


Today's currency exchange rates in Pakistan - Dollar, Euro, Pound, Riyal rates on March 22, 2023

KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on March 22, 2023 (Wednesday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 283.6 286.65
Euro EUR 301 304
UK Pound Sterling GBP 344.5 348
U.A.E Dirham AED 77.2 78
Saudi Riyal SAR 75.4 76.2
Australian Dollar AUD 187 189.4
Bahrain Dinar BHD 749.75 757.76
Canadian Dollar CAD 207.5 209.7
China Yuan CNY 40.91 41.31
Danish Krone DKK 40.59 40.99
Hong Kong Dollar HKD 35.9 36.25
Indian Rupee INR 3.41 3.52
Japanese Yen JPY 2.06 2.11
Kuwaiti Dinar KWD 919.58 928.58
Malaysian Ringgit MYR 62.85 63.45
New Zealand Dollar NZD 176.66 178.66
Norwegians Krone NOK 26.33 26.61
Omani Riyal OMR 732.14 740.14
Qatari Riyal ‎QAR 77.42 78.12
Singapore Dollar SGD 208 210
Swedish Korona SEK 26.5 26.8
Swiss Franc CHF 304.1 306.6
Thai Bhat THB 8.26 8.41

Today's gold rates in Pakistan – 22 March 2023

KARACHI - The price of a single tola of 24-karat gold in Pakistan is Rs 202,400 on Wednesday. The price of 10 grams of 24k gold was recorded at Rs173,500.   

Likewise, 10 grams of 22k gold were being traded for Rs163,624 while a single tola of 22-karat gold was being sold at Rs 190,880.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 202,400 PKR 2,375
Karachi PKR 202,400 PKR 2,375
Islamabad PKR 202,400 PKR 2,375
Peshawar PKR 202,400 PKR 2,375
Quetta PKR 202,400 PKR 2,375
Sialkot PKR 202,400 PKR 2,375
Attock PKR 202,400 PKR 2,375
Gujranwala PKR 202,400 PKR 2,375
Jehlum PKR 202,400 PKR 2,375
Multan PKR 202,400 PKR 2,375
Bahawalpur PKR 202,400 PKR 2,375
Gujrat PKR 202,400 PKR 2,375
Nawabshah PKR 202,400 PKR 2,375
Chakwal PKR 202,400 PKR 2,375
Hyderabad PKR 202,400 PKR 2,375
Nowshehra PKR 202,400 PKR 2,375
Sargodha PKR 202,400 PKR 2,375
Faisalabad PKR 202,400 PKR 2,375
Mirpur PKR 202,400 PKR 2,375


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