The Managing Directors/Chief Executives

All DFIs

Dear Sir/Madam,

Compliance of Regulatory Framework on Corporate Governance

1. In terms of Para 1 of Regulation G-1 for Corporate/Commercial Banking, all banks/DFIs are required to follow the “Code of Corporate Governance” issued by Securities & Exchange Commission of Pakistan. Now, it has been decided that the said requirement shall no longer be applicable on DFIs. However, it is expected that all DFIs will continue to follow the best practices on corporate governance.
2. Further, DFIs, established as Joint Venture Companies, shall continue to ensure compliance with all other provisions of Prudential Regulations in respect of Corporate Governance as long as any provision thereof does not conflict with any provision of their Joint Venture Agreements.
3. The above instructions shall take immediate effect. However, it is clarified that this will not be construed as exemption from any provision/requirement of the Banking Companies Ordinance, 1962.