All Head of Commercial Banks/NBFCs/ DFIs

Dear Sirs/Madams,

PRICE CALCULATION OF SECURITIES INVOLVED IN SBP REPO TRANSACTIONS

Currently SBP is using transaction rate (Quoted rate in OMO and Discount rate in Discounting) for calculation of 1st price of underlying security in repo transactions with market participants.

Now it has been decided that henceforth market rate (PKRV) would be used to calculate 1st price of securities involved in repo transactions (OMO Mop-up/Injection & Discounting) between SBP and market participants.

The above instructions would come into effect from Saturday May 19, 2007.