The Chief Executives,
All Banks/DFIs

Dear Sirs/Madam,

GUIDELINES FOR HIGHER
EDUCATION FINANCING SCHEME (HEFS)

As you are aware, education plays a vital role for the development of human resources which, in turn, helps in sustained economic development of a country. Concerted efforts are needed to accelerate the pace of improving the level and standard of education for sustained economic development in order to alleviate poverty. Commercial banks/DFIs, should play a leading role, as a national priority, for development of human capital. State Bank believes this can be done on a commercially viable and sustainable basis. In order to facilitate the banks/DFIs in this activity, State Bank has devised guidelines for promotion of Higher Education which are attached with the circular.

2. It may please be noted that attached are general guidelines and banks/DFIs are required to keep them in view while framing terms and conditions of their schemes.

3. The banks/DFI, are encouraged to develop their own products/scheme based on the aforesaid guidelines, and get these approved from their Board of Directors/competent authority (in case of foreign banks), and launch this before 28th February, 2006 under intimation to State Bank of Pakistan.

4. This Higher Education Financing Scheme (HEFS) is in addition to and separate from the existing Students Loan Scheme (formerly Qarz-e-Hasna Scheme) for students administered by the National Bank of Pakistan.

5. Please acknowledge receipt.

Encl: As above.