Please refer to AC&MFD Circular Letter No. 2 of 2020, whereby, various regulatory relief measures were announced to dampen the adverse effects of COVID-19 on Agriculture financing portfolio of the banks/DFIs.

2. Considering the prevalent COVID-19 pandemic and the representation of the stakeholders, it has been decided to extend, by ninety days, the last date for submission of the requests by the borrowers for deferment of principal. The borrowers, who have not availed the deferment of principal earlier, may now submit their request, to the banks/DFIs, up to September 30, 2020, for availing this facilitation under Para 2(i) of the aforesaid AC&MFD Circular Letter.

3. It is also being clarified that the banks/DFIs, by defining policy parameters to evaluate the merits of each case and recording reasons & justifications there against, can process the requests, for one time only, for rescheduling / restructuring, under Para 2(ii) of the aforesaid AC&MFD Circular Letter, received from such borrowers who have already availed the deferment of principal amount.

4. All other instructions on the subject shall, however, remain unchanged. The banks/DFIs are advised to follow the revised instructions in letter and spirit. Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

5. Please acknowledge receipt.