The Presidents/CEOs
All banks

Dear Sir/Madam,

Loans for Agricultural Purpose Rules, 1973
Revision in PIU Value of Land in the Passbook

Please refer to ACD Circulars No. 2/90 and 4/2007 dated 21st January, 1990 and 25th September, 2007 on the subject. In this regard, Finance Division (Internal Finance Wing), Government of Pakistan vide Notification S.R.O No. F. 12(1) IF-I/2009-879 dated 12th July, 2010 (Copy enclosed) has enhanced the Produce Index Unit (PIU) value from Rs 1200 to Rs 2000.

All banks are advised to carry out necessary amendment in the Loans for Agricultural Purpose Rules, 1973 as indicated in the above said Notification and also issue instruction to their branches for necessary action in this regard. However, SBP instructions on accepting agricultural land as security on the basis of realizable/forced sale value in addition to PIU or market value shall remain unchanged.

Please acknowledge receipt.