In the recent judgement delivered by the Honorable Supreme Court of Pakistan against National Accountability Bureau Ordinance, 1999, the Hon’ble Supreme Court held that before initiating any action against the willful defaulters, the authorities should give 30 days demand notice to the defaulter to pay up failing which the matter can be brought to the notice of the Governor State Bank of Pakistan, who will then issue a 7 days notice to the defaulter.

 2.         The procedure to be adopted by the banks/DFIs and financial institutions in issuing the afore-said notices along with specimen draft notice are enclosed herewith. Banks, DFIs and financial institutions are advised to follow afore-mentioned procedure.

 3.         All cases referred either directly to NAB or to State Bank in the past and under process should be dealt with afresh as per above procedure.

 4.         This supercedes the instructions contained in Circular Letter No. 29 dated 12^th October 2000 and Circular Letter No. 01 dated 05^th January 2001 of this Department.

 See the Enclosure.