The Presidents / Chief Executives

All Banks/DFIs

Dear Sir/Madam,

Basel III Capital Framework: Treatment of FX Translation Reserves

1. Please refer to “Instructions for BASEL-III Implementation in Pakistan” issued vide BPRD Circular No. 6 of 2013.
2. It has been decided to treat Foreign Exchange Translation Reserves as part of Common Equity Tier-1 (CET-1) Capital with effect from December 31, 2024.
3. All other instructions on the subject shall remain unchanged.

Please acknowledge receipt.