The Presidents/Chief Executives
All Banks/DFIs.

Dear Sirs/Madam,

RECOVERY OF WRITTEN -OFF LOANS AND ADVANCES FROM 1971 ONWARD

Serious questions have arisen with respect to the written-off, remitted, reversed, and / or waived off loans/advances/finances under BPD Circular No. 29 dated October 15, 2002 or otherwise from 1971 onward.

The State Bank of Pakistan (SBP) considered these questions against the possibility that the written-off, remitted, reversed, and/or waived off loans/advances/ finances may have been allowed without validity and justification, or because of political reasons or considerations other than law or bona fide business considerations.

In this context, the following instructions are being issued:

1. The banks/DFIs are directed to immediately submit the entire record of all the written-off, remitted, reversed, and or waived off loans/advances/finances of Rs. 2.500 million and above, for the period from 1971 to 1991, and Rs. 25 million and above from 1992 onward, to the Commission constituted by the Hon'ble Supreme Court of Pakistan in Suo Moto case No. 26 of 2007 for its examination and consideration as to whether they were allowed without validity and justification, or because of political reasons or considerations other than law or bona fide business considerations.
2. All the Banks/DFIs are hereby directed to:
1. Ensure compliance of the above instructions;
2. Provide any and all assistance and co-operation in the work of the Commission; and
3. Comply with any general or special instructions of the Commission.

Please ensure the meticulous compliance of the above and acknowledge the receipt.