BAJK Partners with Faysal Bank to Provide IBAN to Customers

MUZAFFARABAD: The Bank of Azad Jammu and Kashmir (BAJK) has entered into an agreement with Faysal Bank to provide International Banking Account Numbers (IBAN) to its customers. This move comes after the State Bank of Pakistan and AGPR made it mandatory for customers to provide IBAN for receiving government payments.

BAJK currently has over 12,000 government employee accounts, and without IBAN, these customers would not receive their salaries, pensions, or other government payments after November 30, 2024. To resolve this issue, BAJK officers met with representatives from the AG Office, AGPR, and State Bank, where they learned that Karakoram Commercial Bank Limited (KCBL) had faced a similar issue and resolved it through an agreement with Faysal Bank.

The agreement between BAJK and Faysal Bank is a temporary solution to facilitate customers and ensure timely payment of salaries. BAJK is also in touch with two major national banks and has already entered into agreements with UBL and HBL for customer convenience.

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To become a Scheduled Bank, BAJK needs to meet two main conditions: a minimum capital of Rs. 10 billion and banking software. Progress is being made on both fronts, with the purchase of banking software underway and the Government of Azad Jammu and Kashmir supporting the bank in achieving the minimum capital requirement.

Despite rumors on social media, BAJK is performing well, having earned a record profit of over Rs. 1.70 billion in the first eleven months of this year.