All Banks / DFIs

Dear Sir(s) / Madam,

SETTLEMENT OF WILFUL DEFAULTER CASES REFERRED
TO NAB UNDER SECTION 31-D OF NAB ORDINANCE

It has been observed that some of the financial institutions after forwarding the cases of their wilful defaulters to NAB under Section 31-D through SBP, enter into agreements with the borrowers for settlement of outstanding liabilities without obtaining prior consent of the NAB. This practice on the part of financial institutions renders the whole exercise futile. It is therefore, advised that financial institutions should not enter into any agreement with the borrowers in the cases which have already been referred to NAB by Governor SBP under Section 31-D of NAB Ordinance without obtaining prior written permission/clearance from the NAB. With regard to cases which have been forwarded to SBP and are still in the process of referring the same to NAB, the financial institutions should first withdraw their such request/cases from SBP before entering into settlement agreements with borrowers

The above instructions must be adhered to meticulously
Please acknowledge receipt.