refer to BSD Circular No.19 dated September 05, 2008
on the above subject.
2. In view of the general global slowdown in growth
and capital accumulation by financial institutions and
representations from shareholders, the minimum Paid
up Capital (free of losses) requirements for banks have
been revised. Now the banks are required to raise their
paid up capital (free of losses) as per the following
Paid up Capital (free of losses)
While capital adequacy standards will continue as previously
and all banks/DFIs shall be required to increase CAR
to 10% w.e.f. December 31, 2009 irrespective of their
CAMELS-S rating, till further instructions.
4. Branches of foreign banks (FBs) operating in Pakistan
are also required to raise their assigned capital (net
of losses) to Rs. 10 billion within the above prescribed
timelines. However, those foreign banks whose Head Offices
hold Paid up capital (free of losses) of at least equivalent
to US$ 300 million and have a CAR of at least 8% or
minimum prescribed by their home regulator, whichever
is higher, will be allowed with prior approval of the
State Bank to maintain assigned capital as under:
FBs operating with upto 5 branches are required to
raise their assigned capital to Rs. 3 billion latest
by 31st December 2010.
b. FBs operating/desirous of operating with 6 to 50
branches are required to raise their assigned capital
to Rs. 6 billion latest by 31st December 2010.
All other instructions, on the subject, shall remain