In terms of powers conferred upon State Bank of Pakistan under Section 22 of Microfinance Institutions Ordinance – 2001, it has been decided to amend Prudential Regulation No. 12 for classification of assets and provisioning requirements

2. As per the revised instructions, in addition to cash collateral, gold (ornaments and bullion) shall also be considered for the benefit in specific provisioning against non-performing loans.

3. All other instructions will, however, remain unchanged.

Please acknowledge the receipt.

Encl: Revised P.R. 12 for MFBs