The State Bank of Pakistan (SBP) has significantly increased the aggregate borrowing limit for large unrated private sector borrowers, raising the cap from Rs. 3 billion to Rs. 10 billion across all banks and development finance institutions (DFIs).
According to an SBP circular issued on Tuesday, the revised exposure limit will come into effect from September 30, 2026.
The central bank said the decision was taken after reviewing the country’s changing macroeconomic conditions and considering feedback received from the banking industry.
Under the revised framework, banks and DFIs will be allowed to extend aggregate financing of up to Rs. 10 billion to eligible unrated large private sector borrowers, compared with the previous limit of Rs. 3 billion.
The SBP also announced that the updated borrowing limit will be incorporated into the Revised Instructions for Credit Risk under the Basel III standardized approach, which banks and DFIs are currently implementing alongside the existing framework.
The central bank clarified that all other prudential regulations and instructions governing the banking sector will remain unchanged.
The increase in the exposure limit is expected to improve access to financing for large private businesses that do not have external credit ratings, while aligning the prudential framework with evolving economic conditions and banking sector requirements.
