Pakistan’s Banks Impose Fees on Deposits to Avoid State Tax (1)

Pakistan’s banks are adding new fees on some savings accounts to discourage inflows of deposits as they seek to boost their loan-to-deposit ratio to avoid a punitive tax from the government.

Meezan Bank Ltd., the nation’s largest lender by profit, said on Wednesday it will impose a monthly fee of 5% on savings accounts with balances higher than 1 billion rupees ($3.6 million). JS Bank Ltd.and Standard Chartered Bank Pakistan Ltd. also issued notices on the same day, following similar moves from rivals including Habib Bank Ltd. and MCB Bank Ltd. earlier in the week.

The nation’s tax ...