Please refer to BSD Circular No. 04 date February 13, 2009 on the subject.

2)     It is clarified that those Banks / DFIs, which have provided for the impairment on Available for Sale (AFS) securities as on December 31, 2008, may adjust their impairment, due to recovery in market prices during the year 2009. However, this adjustment shall be only to the extent which is in excess of already created impairment as on 31-12-2008. Such adjustments, authenticated by the Statutory Auditors of Banks / DFIs, shall be taken to Revaluation Surplus / (Deficit) account and not to be routed through Profit / Loss account, with adequate disclosures in the financial statements.

3)     Furthermore in cases where impairment on AFS equity investment, made as on 31-12-2008 is sufficient to cover the impairment required during the year 2009, no additional impairment is to be made.

4)     All other instructions on subject issued by State Bank of Pakistan from time to time remain unchanged.l

         Kindly acknowledge receipt.