State Bank of Pakistan

Please refer to BPRD Circular Letter No. 21 dated August 19, 2008 and Circular Letter No. 27 dated September 2, 2015 which interalia require banks / DFIs to desist from adopting discriminatory practices on the basis of trade, region, gender, ethnicity, specific profession, class and / or group of citizens e.g. lawyers, politicians, security officials and law enforcement agencies etc.

2. In this context, Politically Exposed Persons (PEPs) have time and again raised their concerns regarding adoption of discriminatory practices by banks in providing consumer finance and general banking facilities. Such practices are against the spirit of fundamental rights ordained by the Constitution of Pakistan and regulatory instructions on the subject. This has been viewed seriously.

3. Accordingly, banks / DFIs are advised not to discriminate any segment of the society and follow the instructions issued regarding the matter in letter and spirit. It is further advised that henceforth banks / DFIs will explicitly convey reasons of refusal in writing to the applicant and keep a separate file of all approved and rejected cases of PEPs.

4. Any violation of the above instructions shall attract punitive action under the relevant provisions of Banking Companies Ordinance, 1962.

5. Please acknowledge receipt.