Please refer to BSD Circulars No. 26 of October 17, 2008 and No. 13 of June 09, 2008 on the captioned subject.

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 increase the Statutory Liquidity Requirement (SLR) for Islamic Banks/ Islamic Banking Branches, as under:

1. Effective from April 01, 2011:
i. 14% (excluding CRR) of Total Demand Liabilities (including Time deposits with tenors of less than 1 year).
ii. Time Liabilities (including Time deposits with tenor of 1 year and above) will not require any SLR.

2. SLR can be maintained in the form of cash in hand, balance with NBP in current account, balance with SBP in current account and Un-encumbered Approved Securities as notified by SBP from time to time.

3. For SLR purpose:
i. All holdings of GOP Ijara Sukuk (GIS) will be fully counted.
ii. Holdings of ‘SBP approved’ SLR eligible ‘Public Sector’ Sukuks will be counted up to 7% of total time and demand liabilities. However, single issuer holding limit of 5% of total time and demand liabilities stands abolished. This will also be effective from April 01, 2011.

4. All other instructions on the subject shall remain unchanged.