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

2.         We have received queries whether any NPL classified as loss for 3 years and above, but for which one or more installments have been received during the last 3 years, will be eligible under SBP guidelines. This is to clarify that these guidelines shall also be applicable on the aforementioned NPLs provided the category/classification of loan (viz loss category) has not been changed during the last 3 years.

3.         Please acknowledge receipt.