The Presidents / Chief Executives
All Banks / DFIs

Dear Sirs / Madam,

PRUDENTIAL REGULATION O-5

In order to promote the Foreign Direct Investment and facilitate social and economic uplift through donor agencies / welfare organizations, it has been decided that FE-25 Deposits in the form of the Foreign Direct Investment and funds received for social and economic uplift through international donor agencies / welfare organizations may be excluded, by the banks / DFIs, from the calculation of limit on FE-25 Deposits prescribed in Para 6 of Regulation O-5 of the Prudential Regulations for Corporate / Commercial Banking. This will, however, be subject to the condition that the banks / DFIs will obtain an undertaking from the Account Holder that such funds are remitted from abroad and would be used for poverty alleviation and socio-economic uplift. The genuineness of all such exclusions will be verified by the SBP Inspectors during the subsequent inspections.

All such FE-25 deposits excluded from the calculation of limit under Prudential Regulation O-5 shall be reported in the footnote to FE-25 Deposits (Note # 10) in the Weekly Statement of Position.

All other instructions on the subject shall, however, remain unchanged.