Please refer to BPD Circular No. 29 dated the 15^th October, 2002, on the above subject. 

            It has been brought to the notice of State Bank of Pakistan that some banks/DFIs are not entertaining the requests for fresh financing for working capital purposes of those borrowers, who have settled their liabilities under the aforesaid circular/guidelines. It is clarified that all those borrowers who have availed the scheme notified by the concerned bank/DFI in the light of guidelines issued vide the above circular may be eligible for fresh financing. The banks/DFIs are advised to consider and examine such requests strictly on merit, viability of project/business, appropriately securing their interest etc and ensuring compliance with all rules and regulations on the subject. 

            It may, however, be noted that fresh financing may be kept in a separate account and monitored from the date it is granted to the project/business.  The fresh financing, if any, will be treated on a stand alone basis, on its own strength, and not be linked to the classification of the original defaulted amount, unless the status of such fresh financing subsequently, based on its performance, attracts classification and provisioning under the Prudential Regulation VIII.