Regulatory Alerts2026-08-20 | IFPD Circular No. 02 of 2026Added
SBP’s Regulations and Instructions – Changes
SBP has amended its regulations, instructions, and Foreign Exchange manual to align with Shariah principles by introducing Shariah-compliant alternatives for identified terms. These changes apply to all banks, microfinance banks, and development finance institutions, requiring that mentioned terms be interpreted concurrently with their corresponding Shariah-compliant alternatives. The amendments are restricted to the insertions and alternatives stated in Annexure-III, while other contents remain unchanged.
Home
Circulars
IFPD Circular No. 02
SBP’s Regulations and Instructions – Changes
August 20, 2026
46986
The Presidents/Chief Executives All Banks/ MFBs/ DFIs
Dear Sir/Madam, SBP’s Regulations and Instructions – Changes
In line with SBP Vision 2028, and to bring the existing regulatory framework in conformity with Shariah principles, certain changes have been made in the existing SBP regulations, instructions and Foreign Exchange (FE) manual. The lists of these regulations, instructions, and relevant chapters of FE manual are enclosed herewith as Annexure-I and Annexure-II, respectively . The changes are outlined in Annexure-III . Accordingly, all the mentioned terms in the enclosed SBP regulations, instructions and manual shall be interpreted concurrently with their corresponding Shariah-compliant alternatives. These changes shall also apply to other SBP regulations, instructions and chapters of the manual not listed in Annexure-I and Annexure-II , as far as they pertain to Islamic banking. 2. Further, above instructions are restricted only to the extent of the insertions/Shariah alternatives stated in Annexure-III. The other contents in SBP regulations, instructions and manual shall remain unchanged. 3. Please acknowledge receipt.
Enclosed:
Annexure-I: List of SBP's Regulations and Instructions
Annexure-II: List of Chapters of the Foreign Exchange (FE) Manual
Annexure-III: Shariah Compliant Alternatives for Identified Terms
Yours sincerely,
Dr. Zahid Ur Rehman Khokher Director
Home — Circulars — IFPD Circular No. 02
SBP’s Regulations and Instructions – Changes
August 20, 2026
More like this from SBP
SBP published 7 documents in the last 30 days. We email you each new one the day it's published.