Boycott Campaign Against Karakoram Cooperative Bank in Gilgit-Baltistan

In the city of Chilas, located in Pakistan-occupied Gilgit-Baltistan (PoGB), a boycott campaign against the Karakoram Cooperative Bank is gaining momentum. Locals are frustrated with the bank's high interest rates, poor facilities, and slow services. One resident criticized the bank, questioning if it was a bank or a wholesale shop due to its high interest rates and lack of proper facilities.

The bank is accused of charging interest rates over 26%, much higher than the recent reduction in Pakistan's central bank rates. In December 2024, the State Bank of Pakistan lowered its interest rate from 15% to 13%, but the Karakoram Cooperative Bank continues to demand more than double that rate. This has led to financial distress among many locals, particularly affecting the poor and middle class.

The boycott is seen as a response to what many view as economic oppression. The lack of basic banking facilities in Chilas, such as modern technology and ATMs, exacerbates the problem. Residents face long delays, with some waiting days to withdraw salaries. The bank processes only 2-3 cheques per day due to limited resources.

With no other banks in the area, residents feel exploited by the Karakoram Cooperative Bank. The growing boycott campaign calls for urgent reforms to address high interest rates and improve banking services in PoGB.