Please refer to Annexure-I of Prudential Regulations for Corporate / Commercial Banking and BPRD Circular Letter No. 22 of June 24, 2021 on the subject.

2. In order to further promote development finance in Pakistan, it has been decided to include the United States International Development Finance Corporation (DFC), the U.S. government's development finance institution, in Para 1 (C) of Annexure-I of Prudential Regulations for Corporate / Commercial Banking. Accordingly, Para 1(C) of Annexure-I of Prudential Regulations for Corporate/Commercial Banking is revised as under:

“85% of the unconditional financial guarantees accepted as collateral and payable on demand by banks/DFIs, (rated at least ‘A’ or equivalent by a recognized rating agency) shall be deducted. Same weightage to the guarantees of similar nature issued by the International Finance Corporation (IFC), Commonwealth Development Corporation (CDC), Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG), Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V (FMO), GuarantCo Limited, Asian Development Bank (ADB), Infra Zamin Pakistan Limited and United States International Development Finance Corporation (DFC) shall also apply.

However, in respect of above-mentioned banks/DFIs or entities whose guarantee has been accepted as collateral, the beneficiary bank/DFI shall immediately report to SBP

a) Any instance where the guarantee issuing bank/DFI or entity fails to honour the claim within 20 working days of the date on which the guarantee is invoked,

b) Any downgrade in the rating of guarantee issuing bank/DFI below ‘A’.”

3. All other instructions on the matter will, however, remain unchanged.