Karachi, January 23, 2025 – Banks in Pakistan experienced a massive withdrawal of Rs 862 billion during December 2024 as the government prepared to impose stringent restrictions on non-filers of income tax returns. This significant outflow highlights the uncertainty and apprehension among account holders in response to impending policy changes. According to data released by the State Bank of Pakistan (SBP), total deposits held by banks declined by 2.77% during the month, falling from Rs 31.145 trillion in November 2024 to Rs 30.283 trillion by the end of December. This drop reflects heightened financial caution, particularly among individuals and entities that may fall outside the formal tax net. On December 18, 2024, the government introduced a bill in the National Assembly proposing strict measures targeting individuals with taxable income who remain outside the tax net. Among the key provisions is the proposed addition of Section 114C to the Income Tax Ordinance, 2001, which would empower the Federal Board of Revenue (FBR) to restrict specific transactions for non-filers. These include: • Booking, purchasing, or registering motor vehicles; • Registering, recording, or attesting the transfer of immovable properties exceeding FBR-notified values; • Selling securities, including debt…