The Presidents/Chief Executives,

All Banks/DFIs/MFBs,

Dear Sir/ Madam,

Implementation of IFRS 16 - Leases

1. This is with reference to the implementation of International Financial Reporting Standard on Leases i.e. IFRS 16 on the banking industry. In this regard, there has been representations from the financial institutions about the difficulties being faced by them in the implementation of the subject standard.
2. In this regard, it has been decided to extend the implementation date of IFRS 16 for banks/DFIs/MFBs in Pakistan from January 1, 2019 to June 30, 2019. The banks/DFIs/MFBs are advised to review their internal systems and procedures to prepare themselves for implementation of this standard within the prescribed timeline.
3. However, the banks/DFIs/MFBs, which have already adopted IFRS 16 may prepare their financial statements in accordance with IFRS 16.
4. Please acknowledge receipt.