A growing boycott campaign against the Karakoram Cooperative Bank in Chilas, Pakistan-occupied Gilgit-Baltistan (PoGB), is gaining traction as residents voice frustration over the bank’s high interest rates, poor facilities, and inefficient services.
According to reports by Pamir Times, locals are accusing the bank of charging exorbitant interest rates on loans, which have left many residents in financial distress. Customers claim the bank demands interest rates exceeding 26%, far above the central bank’s recently reduced rate of 13%.
One disgruntled resident described the situation, saying:
“Is it a bank or a wholesale shop? The bank with the highest interest rate in Pakistan lacks performance and proper facilities.”
The State Bank of Pakistan lowered its interest rate by 2% in December 2024, yet the Karakoram Cooperative Bank continues to charge more than double that rate. Many locals see this as unfair and exploitative, especially for the poor and middle-class communities.
Poor Facilities Add to Public Frustration
The bank’s outdated systems and lack of basic infrastructure have further aggravated the problem. Key issues highlighted by residents include:
- No ATMs: Customers cannot access funds conveniently, forcing long waits.
- Outdated Systems: The bank’s slow and inefficient processes lead to long delays in financial transactions.
- Salary Delays: People, particularly those from remote areas, often wait several days to withdraw salaries.
Due to the lack of modern banking facilities, customers report that only 2-3 cheques are processed daily, creating further dissatisfaction.
Residents Demand Change
With no other banks in Chilas to turn to, residents feel trapped and exploited by the Karakoram Cooperative Bank. The ongoing boycott campaign is seen as a protest against what many locals describe as economic oppression.
As the movement gathers strength, residents are calling for urgent reforms, including:
- Reduction in Interest Rates: Bringing rates in line with the central bank’s policies.
- Upgrading Infrastructure: Installing ATMs and adopting modern banking technology.
- Improved Services: Faster processing times for financial transactions.
The Way Forward
The growing discontent highlights the urgent need for financial reforms in PoGB. Unless the Karakoram Cooperative Bank addresses the grievances of the public, the boycott is expected to intensify, further straining the region’s already fragile financial landscape.
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