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 Standards

         With a view to further strengthen Shariah compliance framework and harmonize the Shariah practices in Islamic banking industry, the AAOIFI Shariah Standard No. 47 (Rules for Calculating Profit in Financial Transactions), has been adopted with immediate effect subject to clarifications/amendments as given in the attached Appendix – A.

2.        The adoption of this Standard 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.

Encl: Appendix - A