refer to the BSD Circular No. 08 dated June 27, 2006 regarding
implementation of Basel II in Pakistan.
2. State Bank of Pakistan has time and again advised the
banks/DFIs to strengthen their risk management functions,
adopt international standards and implement sound practices.
In the same context, all the banks/DFIs are required to
implement the Standardized Approaches of Basel II from
January 01, 2008.
3. It has been decided that the transition to the Advanced
Approaches of Basel II will be discretionary for all the
banks/DFIs. However, the transition will be subject to
prior written approval of the State Bank. It is clarified
that only those institutions that plan to make a transition
to the Advanced Approaches within the next five (5) years,
are required to submit their Action Plans as required
vide BSD Circular Letter No.02 dated April 29, 2008.
4. All other instructions on the subject shall remain