Gilgit [PoGB], January 5 : A growing boycott campaign continues to gain traction in Pakistan-occupied Gilgit-Baltistan (PoGB) against the Karakoram Cooperative Bank, located in the city of Chilas, as reported by Pamir Times. Locals have strongly criticised the bank's high interest rates, poor facilities, and slow services, leading to widespread frustration among residents.
According to the Pamir Times, one resident expressed his dissatisfaction, saying, "Is it a bank or a wholesale shop? The bank with the highest interest rate in Pakistan lacks performance and proper facilities."
The Karakoram Cooperative Bank has been accused of charging exorbitant interest rates on loans, leaving many in financial distress. Despite offering easy access to loans, the bank is criticised for charging customers interest rates that exceed 26 per cent, much higher than the recent reduction in Pakistan's central bank rates, as reported by the Pamir Times.
In mid-December 2024, the State Bank of Pakistan lowered its interest rate by 2 per cent, bringing it down from 15 per cent to 13 per cent. However, the Karakoram Cooperative Bank continues to demand more than double that rate, a practice that many locals view as unfair, especially towards the poor and middle class. The high-interest burden has fuelled the ongoing boycott, which many see as a form of economic oppression.
Pamir Times has further reported that the lack of basic banking facilities in the city of Chilas has exacerbated the problem. Residents point out that the bank lacks modern technology to improve efficiency, with no ATMs and outdated systems that cause long delays. Many people, especially those coming from remote areas, have to wait several days to withdraw their salaries, further inconveniencing the public.
Residents are also upset by the bank's sluggish pace of processing financial transactions. On average, only 2-3 cheques are processed per day due to the bank's limited resources and facilities. With no other banks in the area, people are left with no choice but to rely on the Karakoram Cooperative Bank, which they feel exploits their financial needs.
As the boycott campaign grows, locals are calling for urgent reforms to address the high interest rates and improve banking services in PoGB.