The Presidents / Chief Executives
All Islamic Banks, Islamic Banking Subsidiary and
All Conventional Banks having Islamic Banking Branches

Dear Sir/Madam,


Adoption of ‘Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI)
Shariah Standard

With a view to further strengthen Shariah compliance framework and harmonize the Shariah
practices in Islamic banking industry, the AAOIFI Shariah Standard No. 30 - Monetization (Tawarruq),
has been adopted with immediate effect subject to clarifications/amendments as given in the
attached Appendix – A.

2.SBP has also issued “Guidelines on Application of Ḥajah (Need) in Tawarruq-based Transactions”
attached as Annexure – I. The adoption of this Standard along with guidelines is in addition to
applicable regulations, instructions and directives issued by SBP from time to time.

3.Failure to comply with these instructions may invoke penal action under the relevant provisions
of the Banking Companies Ordinance 1962.

Please acknowledge receipt.