Please refer to the BSD Circular No. 01 of 2008 dated January 01, 2008 and BSD Circular No. 08 of 2006 dated June 27, 2006 regarding implementation of Basel II in Pakistan.

2. In terms of the issued directives, all banks/DFIs are required to submit to State Bank of Pakistan, Banking Surveillance Department, an action plan latest by April 30, 2008 spelling out the activities and the expected timelines to develop systems for meeting the requirements for advanced approaches as laid down in BSD Circular No. 8 dated June 27, 2006.

3. On the representation of PBA, it has been decided to extend the date for submission of the Action Plan till July 31, 2008. However, banks/DFIs are required to ensure that the plans thus submitted are realistic and reasonable from the perspective of their own capacity and regulatory acceptance.

4. All other instructions on the subject shall remain unchanged.

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