THE introductory note on the official Banking Ombudsman website notes that the first such office in the modern world was established in 1809 in Sweden. In Pakistan, the office was set up in 2005. The difference between the two is more than just 196 years.

In Sweden, the ombudsman is elected by the Riksdag (parliament) for a four- year period. At our end, the tenure is the same, but the appointment is made by the President of Pakistan in consultation with the governor of the State Bank of Pakistan (SBP). The fact that only two persons are involved in such a critical appointment speaks for itself.

Further, a complaint can be filed against the Swedish central bank (Riksbank) with the ombudsman. This is not the case in Pakistan which affects the independence of the office as it has to follow the policy framework of its own appointing authorities. If a bank is dissatisfied with a decision passed by the ombudsman, it can file an appeal with SBP. However, when customers are dissatisfied, they do not have this facility.

Apparently, there is a need to appoint qualified, experienced staff at the Ombudsman’s secretariat because it seems the whole setup is currently understaffed and overworked. In a recent incident, when a case against a certain bank was filed with regard to closure of account, the reply received said: “As your complaint pertains to a credit card, it falls outside the jurisdiction of the Banking Mohtasib. We are not legally empowered to intervene in policy matters.” Ironically, the complaint was never about a credit card. But, while still on the subject, why are credit cards outside the jurisdiction? Are they not banking products?

Moving on, the ombudsman’s office gave the following verdict in the case: “Please consider the case closed from Banking Mohtasib Pakistan. The bank has fulfilled all legal formalities before closing the account. Furthermore, as this is a policy matter, we are unable to intervene.” This verdict was issued without giving the complainant a personal representation.

Now that two decades have gone by since the establishment of the office of the Banking Ombudsman, there is a clear need to revisit the relevant policies with the aim of protecting the rights of bank customers.

Khaled
Islamabad

Published in Dawn, May 6th, 2026