Please refer to our BPD Circular No. 29 dated October 15, 2002 regarding guidelines on write-off of irrecoverable loans and advances.

2.         In this regard it has been noted from the implementation status reported by the Banks/DFIs that despite lapse of more than one month no tangible headway has been achieved by them in implementation of the Scheme. In order to give borrowers maximum possible time to reach agreements with the Banks/DFIs to settle their liabilities, all the Banks/DFIs are once again advised to expeditiously formulate their write-off policies in the light of SBP guidelines and implement the same on urgent basis after getting necessary approval from their respective Board of Directors as the scheme is a one-time opportunity, which will expire on April 14, 2003.

3.         The Banks/DFIs are further advised to submit the compliance report of above instructions to the Banking Policy Department upto December 10, 2002 positively.

4.         Please acknowledge receipt.