Please refer to BSD circular No. 07 dated May 30, 2006 on the above subject.

2) It has been decided to allow use of securities classified under “Held to Maturity” category for borrowing under SBP repo facility (OMO)/ discount window with immediate effect. This facility will be against Market Treasury Bills (MTBs) and Pakistan Investment Bounds (PIBs) to the extent such investments are in excess of limit prescribed for Statutory Liquidity Requirements (SLR). Furthermore, it is clarified that restriction on entering into repo transaction against HTM securities in inter-bank market will continue.

3) This new arrangement is being made temporarily to provide liquidity comfort to Banks and same will be reviewed in due course of time.

4) All other instructions on subject remain unchanged.

Kindly acknowledge receipt.