Please refer to our BPD Circular No. 29 dated October 15, 2002 regarding SBP guidelines on write-off of irrecoverable loans and advances. The SBP Scheme has already expired on June 30, 2003.

2.           From the status submitted by the banks/DFIs, it has been noticed that settlement process is very slow and still lot of cases are pending with them for decision under SBP guidelines.  In order to make financial institutions time bound to settle the cases, all banks/DFIs are advised to decide all cases received for settlement under SBP guidelines by August 31, 2003.

3.           Instances have come to the notice of SBP that some banks/DFIs are not providing required information/ data to “SBP Committee for resolution of cases” in a timely manner and also delay the implementations of its decisions on one pretext or another. The banks/DFIs are once again advised to provide required data to the Committee within the time frame given by the Committee and also implement its decisions in letter & spirit.

4.           Furthermore, the Banks/ DFIs would continue reporting data under BPD Circular Letter No. 1 of 2003 regarding details of cases being settled under SBP guidelines on monthly basis till all cases are settled/ decided or August 31, 2003, whichever is earlier.

5.           Please acknowledge receipt.