The State Bank of Pakistan (SBP) has increased the aggregate exposure limit for unrated large private sector borrowers from all banks and development finance institutions (DFIs) to Rs10 billion, up from the existing Rs3 billion, with the revised limit taking effect from September 30, 2026.

According to a circular issued by the central bank, the decision was made after considering changes in Pakistan's macroeconomic environment and feedback received from the banking industry. The move is aimed at providing greater financing flexibility for large private sector borrowers that do not possess external credit ratings.

The revised threshold supersedes earlier regulatory instructions, including BSD Circular No. 8 of June 27, 2006, BPRD Circular Letter No. 2 of January 9, 2015, and BPRD Circular No. 3 of September 24, 2025.

The SBP also announced that the updated exposure limit will be incorporated into the Revised Instructions for Credit Risk (Standardized Approach) under the Basel III framework, which banks and DFIs are currently implementing through a parallel run.

The central bank clarified that all other prudential regulations and instructions governing exposure limits and credit risk management will remain unchanged. The revised limit is expected to enhance financing capacity for large private sector businesses while aligning the regulatory framework with evolving economic conditions and banking sector requirements.