Please refer to BSD Circular No. 18 dated August 28, 2008 and Government of Pakistan’s Notifications SRO Nos. 517(I)/2008 & 518(I)/2008 issued on June 09, 2008, whereby Term Finance Certificates (TFCs) of Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Islamabad Electric Supply Company (IESCO), and Lahore Electric Supply Company (LESCO), were notified as Approved Security for the purpose of Statutory Liquidity Requirement (SLR) under sub-section(1) of Section 29 of the Banking Companies Ordinance (BCO), 1962.

2. Presently, these TFC’s with outstanding amount of Rupees 24 billion have been transferred to Power Holding (Private) Limited (PHPL). Accordingly as per Government of Pakistan’s Notification No. F. No. 1(17)CF-I/2009-10-Pt/1163 dated 31st May 2010; TFC’s now issued by PHPL are declared as approved securities for the purpose of SLR, only to the extent of the said amount. Furthermore, it is clarified that SLR eligibility of TFC’s of FESCO, GEPCO, IESCO, and LESCO notified by above-referred Circular in Para-1, stands invalid.

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

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