Please find enclosed a copy of SECP’s Notification No.SRO.150(1)/2009 dated the 13th February, 2009 relating to accounting treatment of impairment losses.

2) Banks / DFIs may, if they so desire, adopt the aforesaid Notification of SECP for treatment of impairment loss recognized as on 31-12-2008 on valuation of listed equity investment held in Available for Sale (AFS) Category. This will be subject to the full disclosure and restriction on dividend as required vide Para 3 and Para 1-(iii) of the said Notification. However, early recognition of full impairment loss by Banks / DFIs is encouraged.

3) All other instructions on the subject issued by State Bank of Pakistan from time to time shall remain unchanged.

Please acknowledge receipt

Encl: As Above