Please refer to BPD Circular No.03 dated June 05, 2006 on the captioned subject, wherein banks were required to complete all necessary formalities with the Utility Companies and submit a compliance report to State Bank of Pakistan latest by 31st July, 2006.

2. In the above context, we have received requests from some of the banks for extension in time to enable them to complete the required arrangements/ formalities with the Utility Companies. The request of the banks has been considered and it has been decided to allow a final extension to all the banks for completion of the required arrangements / formalities upto 31st August 2006. Please note that no further extension in time will be allowed. Banks failing to finalize the arrangements within the above period will be considered as non-compliant banks and the same will be indicated in our report to the Supreme Court.

3. State Bank of Pakistan will carry out surprise checks of the banks’ branches to ensure adherence to the above instructions. Any violation of SBP instructions in this regard will attract the penal action under Section 83 (5) of the Banking Companies Ordinance, 1962.

4. Please acknowledge receipt.