The Director Accounts,
State Bank of Pakistan,
Banking Services Corporation (Bank),
Head Office,
Karachi.

Dear Sirs,

MANAGEMENT OF RETIRED EMPLOYEES FUND SCHEME
RATE OF RETURN W.E.F. 01-07-2007

It has been decided that the rate of return payable to the ex-employees of the Bank on their deposits in “Management of Retired Employees Fund” will be calculated on the basis of actual return earned by the Bank on investment made from MREF deposits. This new return/profit payment policy will be applicable w.e.f. 01-07-2007. Accordingly, all the returns payable to the ex-employees after June 30, 2007 on account of their deposits in MREF will be calculated as below:

• Formula for calculation of Gross Return payable to individual MREF depositor:
Total income earned during the period * Daily Product of MREF depositor
Sum of Daily Products –All depositors:

• Formula for calculation of Rate of Return (p.a.) on MREF deposits:

Total income earned during the period * 365 * 100
Sum of Daily Products –All depositors

• Basis of calculation of Return Daily Product
• Payment of Return Semi-annually
• Deductions Applicable(from Gross Return) Services charges @ 0.25 %, Withholding tax and Zakat as applicable

You are requested to issue necessary instructions to all the concerned for implementation of the above change. The technical/system assistance in the determination/calculation of return on Daily Product Basis may be requested from
IS & TD. You are also requested to ensure that all MREF depositors are individually informed about the above change in the determination of return payable to them, immediately, however, not later than 1st July, 2007.