The Presidents/Chief Executive Officers

All Islamic Banks/Islamic Banking Branches

Dear Sirs / Madams,

Statutory Liquidity Requirement

Please refer to DMMD Circular no. 03 dated April 27, 2011 on the subject cited above.

In exercise of the powers conferred upon the State Bank of Pakistan under section 36 of the State Bank of Pakistan Act, 1956, and section 29 of the Banking Companies Ordinance, 1962 It has been decided to revise the Statutory Liquidity Requirement (SLR) for Islamic Banks/Islamic Banking Branches.

Effective from November 17, 2016, all Islamic Banks/Islamic Banking Branches will maintain SLR of 14% (excluding CRR) of Total Demand Liabilities (including Time Deposits with tenor of less than 1 year). Time Liabilities (including Time Deposits with tenor of 1 year and above) will not require any SLR.

All other instructions on the subject shall remain unchanged.