Please refer to State Bank’s circular No. DS.MFS.5 (18)/2009-872 dated 22nd May, 2009, under which banks are required to submit monthly statement of sectoral balance sheet (Flow of Funds Statement / Annexure A03) regularly to Statistics & DWH Department through DAG Portal of SBP.

According to the guidelines of IMF’s Monetary & Financial Statistics Manual-2000, inventory based financing products of Islamic banks/IBBs as Murabaha, Ijara, Istisna etc are classified as loans (financing) in the above mentioned statement. However, it seems necessary to clarify that advance to purchase the goods or the purchased goods will be recorded under “other accounts receivables” or “Non Financial Asset” of the bank respectively. When the customer will enter the contract to purchase those goods only then it will be classified as loans in sectoral balance sheet (Annexure A03). In case of any query the officer concerned of this department may be contacted.

All banks are advised to meticulously follow this data reporting practice for reporting under sectoral balance sheet (Annexure A03).

Yours truly,