State Bank of Pakistan

01/24/2025 | Press release | Distributed by Public on 01/24/2025 09:47

BPRD Circular Letter No. 02 of 2025 - Basel III Capital Framework: Treatment of FX Translation Reserves

The Presidents / Chief Executives
All Banks/DFIs

Dear Sir/Madam,


Basel III Capital Framework: Treatment of FX Translation Reserves

Please refer to "Instructions for BASEL-III Implementation in Pakistan" issued vide BPRD Circular No. 6 of 2013.

  1. It has been decided to treat Foreign Exchange Translation Reserves as part of Common Equity Tier-1 (CET-1) Capital with effect from December 31, 2024.
  2. All other instructions on the subject shall remain unchanged.

    Please acknowledge receipt.