Please refer to BSD Circular No. 11 dated May 22, 2008 on the captioned subject.

2. In exercise of the powers conferred upon the State Bank of Pakistan under Section 36 of the State Bank of Pakistan Act, 1956, and Section 29 of the Banking Companies Ordinance, 1962 it has been decided to revise the Cash Reserve Requirement (CRR) as under:-

A- Cash Reserve Requirement:

a. Effective from 11th October, 2008;

i) Weekly average of 8.0% (subject to daily minimum of 7.0%) of total Demand Liabilities (including Time Deposits with tenor of less than 1 year)

ii) Time Liabilities (including Time Deposit with tenor of 1 year and above) will not require any Cash Reserve.

b. Effective from 15th November, 2008;

i) Weekly average of 7.0% (subject to daily minimum of 6.0%) of total Demand Liabilities (including Time Deposits with tenor of less than 1 year)

ii) Time Liabilities (including Time Deposit with tenor of 1 year and above) will not require any Cash Reserve.

B- Statutory Liquidity Requirement:
      Remains unchanged at 9% (excluding CRR) of Total Time and Demand Liabilities.

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

Please acknowledge receipt.