Regulatory Alerts2026-08-04 | BPRD Circular Letter No. 16 of 2026Added
Risk Weight for Unrated Large Corporate Borrowers
The aggregate exposure limit for unrated large private sector borrowers from all banks and DFIs is increased from PKR 3 billion to PKR 10 billion. This change becomes effective on September 30, 2026, and will be incorporated into the Revised Instructions for Credit Risk (Standardized Approach) under the Basel-III framework. Banks and DFIs are implementing these instructions in parallel run.
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BPRD Circular Letter No. 16
Risk Weight for Unrated Large Corporate Borrowers
August 04, 2026
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The Presidents/Chief Executives All Banks/DFIs Dear Sirs / Madam, Risk Weight for Unrated Large Corporate Borrowers Please refer to BSD Circular No. 8 dated June 27, 2006, BPRD Circular Letter No. 2 dated January 9, 2015, and BPRD Circular No. 3 dated September 24, 2025, regarding the captioned subject. 2. In this regard, keeping in view the changes in macroeconomic environment and feedback received from the banking industry, it has been decided to increase the currently applicable aggregate exposure limit of unrated large private sector borrowers from all banks & DFIs, from existing PKR 3 billion to PKR 10 billion, effective from September 30, 2026. 3. The above change shall also be incorporated in the Revised Instructions for Credit Risk (Standardized Approach) under Basel-III framework issued vide BPRD Circular No. 3 dated September 24, 2025, which is being implemented, in parallel run, by the banks and DFIs. 4. All other instructions, on the subject, shall remain the same. 5. Please acknowledge receipt.
Yours sincerely,
Syed Mansoor Ali Director
Home — Circulars — BPRD Circular Letter No. 16
Risk Weight for Unrated Large Corporate Borrowers
August 04, 2026