The Presidents/Chief Executives

All Islamic Banks and

All Conventional Banks having Islamic Banking Branches

Dear Sir/Madams,

Instructions for Profit and Loss Distribution and Pool Management for IBIs

1. Please refer to IBD Circular No. 03 dated November 19, 2012 as amended vide IBD Circular Letter No. 01 dated January 01, 2013 on the above subject. In this regard, it is clarified that the provisions created against non-performing assets as per relevant SBP regulations will be charged to the respective pool. Accordingly, para 2.3.1 of the “Instructions for Profit & Loss Distribution and Pool Management for IBIs” is replaced with the following:

“The provisions created against non-performing assets as per relevant SBP regulations, write-offs and loss on sale of investments shall be charged to respective pool along with other direct expenses. In case of any reversal of the provisions expense/value in investment, the benefit shall be allocated to the same pool.”

2. Moreover, in para 2 of IFPD Circular No. 9 dated November 26, 2024, the phrase “(excluding fixed assets)” stands deleted.
3. Other instructions of the above referred Circulars/Circular Letter shall remain unchanged.