Annual Report 2006

Contents
Vision 02
Mission 03
Core Values 04
Goals 05
Corporate Information 06
Financial Highlights - 2006 07
Six Year Performance at a Glance 08
Board of Directors 10
Senior Management 11
th
Notice of 58 Annual General Meeting 14
Statement under section 160 of the Companies Ordinance, 1984 16
Directors’ Report 19
Statement of compliance with code of Corporate Governance 28
Auditors’ Review Report to the Members on Statement of Compliance with

Code of Corporate Governance 30
Auditors’ Report to the Members 31
Financial Statements - 2006 33
Consolidated Financial Statements of NBP and its Subsidiary Companies-2006 109
Pattern of Shareholding 191
Categories of Shareholders 195
Head Office Management 197
Domestic Operations 206
Overseas Operations 219
Form of Proxy
Vision
To be recognised as a leader and a brand synonymous with trust, highest

standards of service quality, international best practices and social
responsibility.
Mission
NBP will aspire to the values that make NBP truly the Nation’s Bank, by :
Institutionalising a merit and performance culture.

Creating a distinctive brand identity by providing the highest standards of services.
Adopting the best international management practices.
Maximizing stakeholders value.
Discharging our responsibility as a good corporate citizen of Pakistan
and in countries where we operate.
Core
Values
Highest standards of Integrity.

Institutionalising team work and performance culture.
Excellence in service.
Advancement of skills for tomorrow’s challenges.
Awareness of social and community responsibility.
Value creation for all stakeholders.
Goals
To enhance profitability and maximization of NBP share through increasing

leverage of existing customer base and diversified range of products.
Board of Directors Syed Ali Raza
Chairman & President
Dr. Waqar Masood Khan
Iftikhar Ali Malik
M. Zubair Motiwala
Sikandar Hayat Jamali
Azam Faruque
Audit Committee Azam Faruque

Chairman
Iftikhar Ali Malik
M. Zubair Motiwala
Auditors Ford Rhodes Sidat Hyder & Co.

Chartered Accountants
M. Yousuf Adil Saleem & Co.

Chartered Accountants
Legal Advisors Mandviwala & Zafar

Advocates & Legal Consultants
Registered & Head Office NBP Building

I. I. Chundrigar Road, Karachi, Pakistan.
Registrar’s & Share Registration Office THK Associates (Pvt.) Ltd.

Shares Department, Ground Floor,
State Life Building # 3,
Dr. Ziauddin Ahmed Road,
Karachi, Pakistan.
Financial Highlights - 2006
( Rs. In Million )
Authorised Capital 7,500
Paid-up Capital 7,091
Shareholders' Equity and Reserves 81,954
Deposits 501,872
Advances - Net 316,110
Investments - Net 139,947
Total Assets 635,133
Pre-Tax Profit 26,311
After-Tax Profit 17,022
No. of Branches 1,250
No. of Employees 14,019
07
Six Year Performance at a Glance
( Rs. In Million )
Total Shareholders’
Deposits Advances Investments
Assets Equity
2001 415,089 349,617 170,319 71,759 11,959
2002 432,803 362,866 140,547 143,525 14,279
2003 468,972 395,492 161,266 166,196 18,134
2004 553,231 465,572 220,794 149,350 24,900
2005 577,719 463,427 268,839 156,985 37,636
2006 635,133 501,872 316,110 139,947 53,045
Total Assets Deposits
750,000 600,000
635,133 501,872
577,719 465,572 463,427
625,000 553,231 500,000
468,972 395,492
( Rs. In Million )
( Rs. In Million )
362,866
500,000 415,089 432, 803 400,000 349,617
375,000 300,000
250,000 200,000
125,000 100,000
2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
Advances Shareholders’ Equity
360,000 60,000 53,045

316,110
300,000 268,839 50,000
37,636
( Rs. In Million )
( Rs. In Million )
220,794
240,000 40,000
170,319 161,266 24,900

180,000 140,547 30,000
18,134
120,000 20,000 11,959 14,279
60,000 10,000
2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
08
Six Year Performance at a Glance
( Rs. In Million )
Pre-Tax After-Tax Earnings Per Return on Assets Number of Number of

Profit Profit Share (Rs.) (Pre-Tax Profit) Branches Employees
3,016 1,149 3.08 0.8% 1,245 15,163
6,045 2,253 5.49 1.4% 1,204 12,195
9,009 4,198 8.53 2.0% 1,199 13,272
11,978 6,195 10.48 2.4% 1,226 13,745
19,056 12,709 17.92 3.4% 1,242 13,824
26,311 17,022 24.01 4.3% 1,250 14,019
Pre-Tax Profit After-Tax Profit

17,022
30,000 18,000
26,311
25,000 15,000 12,709
( Rs. In Million )
( Rs. In Million )
20,000 19,056 12,000
15,000 9,000
11,978 6,195
9,009
10,000 6,000 4,198
6,045
3,016 2,253
5,000 3,000 1,149
2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
Earnings Per Share Return on Assets (Pre-Tax Profit)

4.9
27 4.3%
24 24.01 4.2
21 3.4%
3.5
17.92
( Percentage )
18
2.8
( Rupees)
15 2.4%
10.48 2.0%
12 8.53 2.1
1.4%
9
5.49 1.4
6 0.8%
3.08
3 0.7
2001 2002 2003 2004 2005 2006 2001 2002 2003 2004 2005 2006
09
Board of Directors
S. Ali Raza
Dr. Waqar Masood Khan Iftikhar Ali Malik
M. Zubair Motiwala Sikandar Hayat Jamali
Azam Faruque
Senior Management
Masood Karim Shaikh

SEVP & Group Chief, Corporate & Investment Banking Group
Shahid Anwar Khan

SEVP & Group Chief, Credit Management Group
Dr. Asif A. Brohi

SEVP & Group Chief, Operations Group
Imam Bakhsh Baloch

SEVP & Group Chief, Audit & Inspection Group
Ziaullah Khan
SEVP & Group Chief, Compliance Group
Dr. Mirza Abrar Baig

SEVP & Group Chief, Human Resources Management & Administration Group
Amer Siddiqui
SEVP & Group Chief, Commercial & Retail Banking Group
Muhammad Nusrat Vohra

SEVP & Group Chief, Treasury Management Group
Amim Akhtar
EVP & PSO to the President
Ekhlaq Ahmed
EVP & Secretary Board of Directors
Tajammal Hussain Bokharee

EVP & Group Chief, Special Assets Management Group
Mrs. Khurshid Maqsood Ali

EVP & Divisional Head, Employees Benefits, Disbursements & Trustees Division
Tahir Yaqoob
EVP & Group Chief, Overseas Coordination & Management Group
Anwar Ahmed Meenai

EVP & Divisional Head, Islamic Banking Division
Aamir Sattar
Financial Controller & Divisional Head, Financial Control Division
Atif Hassan Khan

Group Chief (A), Information Technology Group
Make your
dreams a
reality
Self employment opportunities

* Subject to the availability of subsidy from Gop
for un-employed
Minimum down payment: 10% of asset price (5% for PCO & Tele Center)
Tenure: 1 to 5 years (for PCO 2 years).
Grace period: 3 months
Maximum loan amount: Rs. 200,000
Age: 18 - 45 years
Mark-up (Variable): 1 year KIBOR + 2.00% p.a. (for the first year, mark-up will be 12% )
The customer will pay mark-up @ 6% p.a. as long as GoP provides the
balance mark-up to NBP on monthly basis*
Life & disability insurance paid by GoP*
Corporate
Banking
NBP further consolidated its position as one of the top players in corporate
and investment banking of the country in 2006 and has built a strong
customer relationship with the premier corporate clients.
Notice of 58th Annual General Meeting
Notice is hereby given that the 58th Annual General Meeting of National Bank of Pakistan, will, Insha Allah, be held on
Monday, the April 02, 2007 at 10:00 A.M. at Crystal Ball Room, Marriott Hotel, Karachi.
The following business will be transacted in the meeting:
ORDINARY BUSINESS:
1. To receive and adopt the Audited Accounts of the Bank for the year ended 31st December, 2006, together with the
Directors' & Auditors' Reports thereon.
2. To appoint auditors for the year ending 31st December, 2007 and fix their remuneration.
3. To consider and approve Cash Dividend @ 40% and Bonus Shares @ 15% (thereby increasing Paid-up Capital of
the Bank from Rs. 7,090,712,950/- to Rs. 8,154,319,890/- as recommended by the Board of Directors for the year
ended 31st December, 2006 (subject to Government of Pakistan/ Regulatory approvals).
SPECIAL BUSINESS:
4. To approve increase in Bank's Authorized Capital from Rs. 7.5 Billion (divided into 750 Million Ordinary
Shares of Rs. 10/- each) to Rs. 10 Billion (divided into 1,000 Million Ordinary Shares of Rs. 10/- each), as approved
by GoP, vide Finance Division's Notification No. F.1(4) Bkg-III/2002 dated February 23, 2007, by passing the
following resolution:
“RESOLVED THAT in terms of Section 4(4) of The NBP Ordinance 1949, the increase in Bank's Authorized
Capital from Rs.7.5 Billion (divided into 750 Million Ordinary Shares of Rs. 10/- each) to Rs.10 Billion (divided into
1,000 Million Ordinary Shares of Rs. 10/- each) as approved by GoP, vide Finance Division's Notification No. F.1(4)
Bkg-III/2002 dated February 23, 2007, be and is hereby approved.”
5. To approve / ratify the following donations recommended / approved by the Board / Bank's Management, by
passing the following ordinary resolution(s):
“RESOLVED THAT the donation of Rs.854,156.49, being the net sale proceeds of 2,882 fractional Bonus Shares
- 2005 to one or more charitable trust(s) / Welfare Association(s) or any other institution / organization engaged in
the welfare of human being, name of which will be approved by the President (NBP), be and is hereby approved.”
“FURTHER RESOLVED THAT the decisions taken by the Management / Board towards approving following
donations, be and are hereby ratified.
- Layton Rehmatulla Benevolent Trust (LRBT): Rs. 1,000,000/-

- Institute of Technology Pakistan Aeronautical Complex, Kamra; Rs. 499,600/-
- Auj International, Karachi: Rs. 200,000/-
- Mr. Muhammad Rustam: Rs. 100,000/-
- Shade Organization: Rs. 50,000/-
Total Rs. 1,849,600/- ”
(Statement under Section 160 of The Companies Ordinance, 1984 in respect of Special Business is enclosed with
the notice sent to Bank's shareholders.)
6. To transact any other business with the permission of the Chairman.
By Order of the Board

Sd/-
Karachi. (S. Ali Raza)
Dated: March 11, 2007 President
Notice of 58th Annual General Meeting
Note:
i) The Share Transfer Books of the Bank shall remain closed from March 20, 2007 to April 02, 2007 (both days
inclusive). Transfers received at Messrs THK Associates (Pvt) Ltd., Ground Floor, State Life Building No. 3
Dr. Ziauddin Ahmed Road, Karachi, the Bank's Registrar and Share Transfer Agent, at the close of the business on
March 19, 2007 will be treated in time for purpose of the entitlement of Cash Dividend / Bonus Shares.
ii) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as a
proxy to attend and vote on his / her behalf. The Government of Pakistan and State Bank of Pakistan and any
Corporation(s), being member of the Bank, may nominate any person as its representative to attend the Annual
General Meeting under authority of a Power of Attorney or a Board of Directors' Resolution. Proxies or
nominations, in order to be effective and valid, must be received at the office of the Bank's Registrar / Transfer
Agent, Messrs THK Associates (Pvt) Ltd., Ground Floor, State Life Building No. 3 Dr. Ziauddin Ahmed Road,
Karachi, not less than 48 hours before the time of holding the Annual General Meeting.
iii) The CDC Account Holders and Sub-account Holders, whose Registration details are available in the Share Book
Detail Report shall be required to produce their respective Original National Identity Cards (CNICs) or original
Passports at the time of attending the Annual General Meeting to facilitate identification. Such Account Holders
and Sub-Account Holders should also bring / know their respective participant I.D No.and the CDC Account
Number. In case of proxy, he/she must enclose an attested copy of his / her NIC or Passport. Representative(s) of
corporate member(s) should bring usual documents required for such purpose.
iv) Members are requested to timely notify any change in their addresses to the Bank's Registrar / Transfer Agent,
Messrs THK Associates (Pvt) Limited.
Statement under Section 160 of the Companies Ordinance, 1984
This statement sets out the material facts concerning the Special Business, given in agenda item No. 4 & 5 of the Notice, to
be transacted at the 58th Annual General Meeting of National Bank of Pakistan.
Item No. 4:
TO APPROVE INCREASE IN BANK’S AUTHORIZED CAPITAL FROM RS. 7.5 BILLION TO RS. 10 BILLION,
AS APPROVED BY GOP, VIDE FINANCE DIVISION’S NOTIFICATION NO. F.1 (4) BKG-III/2002 DATED
FEBRUARY 23, 2007
Bank's Authorized Capital was increased from Rs. 5 Billion to Rs.7.5 Billion vide GoP, Finance Division, Notification No.
F.1(4)Bkg-III/2002 dated January 31, 2005.
The Bank in addition to Cash Dividend also declared Bonus Shares for the year 2005 & 2006. Resultantly, Bank's Paid up
Capital increased to Rs. 7.090 Billion. In view of insufficient cushion now available for declaration of proposed and future
bonus issue (s), the NBP Board in its 152nd meeting held on February 10, 2007 recommended increase in Bank's
Authorized Capital from Rs. 7.5 Billion (divided into 750 Million Ordinary Shares of Rs. 10/- each) to Rs. 15 Billion (divided
into 1,500 Million Ordinary Shares of Rs. 10/- each).
The matter was taken up with the GoP, for approval of the aforesaid increase. GoP in terms of Section 4 (1) of The NBP
Ordinance 1949, has approved the increase upto Rs.10 Billion through Finance Division's Notification No. F.1(4) Bkg-
III/2002 dated February 23, 2007.
Item No. 5:
i) DONATION OF NET SALE PROCEEDS AMOUNTING TO RS.854,156.49 OF 2,882 FRACTIONAL BONUS

SHARES-2005 TO ONE OR MORE CHARITABLE TRUST(S) / WELFARE ASSOCIATION(S) OR ANY
OTHER INSTITUTION ENGAGED IN THE WELFARE OF HUMAN BEING:
On the basis of operating results for the year ended December 31, 2005, the Bank's Board in its 141st meeting held
on March 18, 2006 recommended payment of 25% Cash Dividend and 20% Bonus Shares to the Bank's
shareholders, which was also approved by the Bank's shareholders in 57th AGM held on April 27, 2006...
Accordingly, Dividend Warrants and Bonus Shares were issued to the shareholders as per their entitlement. In this
connection, 2,882 Bonus Shares, being fractional shares, could not be distributed to the shareholders. For
disposal of these fractional 2,882 Bonus Shares, with the Board's approval dated February 10, 2007, a
consolidated Share Certificate No. 070343 covering 2882 fractional bonus shares-2005, bearing distinctive No.
0709068414 to 0709071295 in the name of “Secretary (Board), NBP”, was issued which was sold, through a
member of KSE, Messrs Sherman Securities (Pvt.) Ltd., against net sale proceeds of Rs. 854,156.49.
On account of high cost of computer printing, post printing, distribution / postage and handling charges of the
fractional coupons, the NBP Board in its 152nd meeting held on February 10, 2007 recommended that with the
approval of the shareholders, the net sale proceeds of the fractional Bonus Shares-2005, be donated to one or
more charitable trust(s) / Welfare Association(s) or any other institution / organization engaged in the welfare of
human being.
In this connection, approval of shareholders is now being solicited for donating the net sale proceeds amounting to
Rs. 854,156.49 of 2,882 fractional Bonus Shares - 2005, to one or more charitable trust(s) / Welfare Association(s)
or any other institution / organization engaged in the welfare of human being, name of which will be approved by
the President (NBP).
ii) TO RATIFY THE DECISIONS TAKEN BY THE BANK'S MANAGEMENT / BOARD FOR APPROVING THE
DONATIONS AGGREGATING RS. 1,849,600/-:
a) Layton Rehmatulla Benevolent Trust (LRBT) is a nationwide network of 13 major eye hospitals
established and working in all four provinces of Pakistan fighting the enormous problems of blindness
Statement under Section 160 of the Companies Ordinance, 1984
and eyesight. LRBT treats over one million patients a year free of charge. The Friends of LRBT organized
a donors dinner on May 19, 2006. The President of Pakistan graced the occasion. Bank Al Habib, State
Life, Brook Bond, Uniliver, Shell Pakistan, etc also participated by way of sponsorships and donations.
National Bank of Pakistan made a donation of Rs.1.000(M) for organizing the said donors dinner with the
approval of the Operations Committee which was subsequently ratified by the Board of Directors in its
146th meeting held on July 1, 2006.
b) A donation of Rs.499,600/- was made to Institute of Technology Pakistan Aeronautical Complex, Kamra
for purchase of 5 P-IV computers and 2 printers with the approval of the OperationsCommittee which was
subsequently ratified by the Board of Directors in its 139th meeting held on January 28, 2006.
c) Auj International, Karachi is a General Magazine and covers various matters of public interest like
interviews of prominent personalities, scientific features, educational surveys, etc. They wish to cover a
number of other aspects of the Society. A donation of Rs.200,000/- was approved by the Bank's
Management to the above Magazine which was ratified by the Board of Directors in its 152nd meeting held
on February 10, 2007.
d) Mr. Muhammad Rustam, uncle of Ms. Humaira, who was suffering from typhoid had appealed in the Daily
News to Philanthropists for assistance. A Donation of Rs. 100,000/- was approved for the sick persons by
the Bank's Management which was ratified by the Board of Directors in its 152nd meeting held on
February 10, 2007.
e) A donation of Rs.50,000/- was made in the name of “Shade Organization” for arranging matrimonial
ceremony for destitute/orphan girls on 9-4-2006 at Sialkot. Managements’ action for making the above
donation was ratified by the Board in its 152nd meeting held on February 10, 2007.
The matter is now being placed before the shareholders for ratification in terms of SBP, BPRD Circular No. 4 dated
February 02, 2000.
There is no interest, directly or indirectly, of any of the directors of NBP except as a Director of the Bank, in the above
mentioned items of Special Business.
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Directors’ Report
It gives me great pleasure to present on

behalf of the Board of Directors, annual
accounts of the bank for the year ended
December 31, 2006.
Year 2006 has been an outstanding year with record

profits. The bank's strong franchise and fundamental
strength enabled exceptional results in a very
competitive environment. The Pre-tax profit increased
to Rs. 26.3 billion, an increase of 37% over last year.
Earnings per share jumped by over 37% from
Rs. 17.92 in 2005 to Rs. 24.01 in 2006. Pre-tax return
on equity stood at 58%, pre-tax return on assets
improved to 4.3% from 3.4% of the last year and cost
to income ratio of 0.32 remained in the top tier.
NBP's growth is backed by our determination and core

values to pursue the highest standards of integrity,
institutionalizing team work and a merit culture,
excellence in service and value creation for all
stakeholders.
Increase in profit by over Rs. 7 billion was achieved

through strong growth in core banking income.
Interest income increased by Rs. 10 billion (30%)
through a combination of growth in the loan portfolio
across all sectors as well as increase in spreads.
Dividend income also made a healthy contribution as
it increased by Rs. 1,173 million over 2005. Advances
increased by Rs. 51 billion due to impressive
contribution by all business units. During the year the
banks were faced with a generally tight liquidity
position which led to aggressive competition for
deposit mobilization at high rates. Deposits increased
by Rs. 38 billion or 8% over last year. The bank's loan
loss provision to non-performing loans stood at 82%.
CORPORATE BANKING
NBP further consolidated its position as one of the top

players in corporate and investment banking market of
the country in 2006 and has built a strong customer
relationship with the premier corporate clients. In a
challenging environment, NBP acted as lead advisor
and arranger in landmark syndications, advisory and
project financing transactions which substantially
increased the loan book.
The Corporate and Investment Banking Group is

structured to provide a focused and professional
approach towards enhancing NBP's share of business
within existing and more importantly new business from
larger corporate customers. With an increasing focus
towards products structured according to various market
sectors, more emphasis is on relationship management
and provision of high quality and responsive customer
service. Group is responsible for corporate and
Directors’ Report
investment banking, transaction structuring and tailor made solution for corporate customers and managing equity
portfolios. NBP has a strong advantage with a substantial asset base, strong branch network and financial stability and is
capitalizing on these for further growth. Strong economic outlook and continued growth within various industrial sectors
present a strong outlook for growth in corporate lending. With an increase in interest rates, present growth within the
corporate sector has slowed however future outlook on rates remains stable and therefore overall healthy growth is
expected in corporate lending. NBP is focusing more on its trade business for increasing fee income.
RETAIL BANKING
Retail banking is aimed towards optimizing the use of

existing delivery channels and developing alternate Customer Relationship continuity
delivery channels for further business development and and cross selling
expanding accessibility options by enhancing customer
convenience combined with large branch network. Retail
business development strategy is based on a
combination of customer driven and internal capacity
building measures. The bank recognizes competitive
pricing to be a key strength in the face of increasing
competition. The bank capitalized on its largest customer
base of deposits for cross selling of retail asset products
and focus is being laid on service quality, turn around
time, delivery channels and strengthening of internal
systems. Continuous re-alignment of internal processes
and innovation through excellence, training of resources
and technology are considered the hallmarks for success
in retail banking.
Retail banking further consolidated its position during

the year. NBP advance salary product continued its
success story and the customer base swelled to over
650,000. This growth has been achieved with minimum
delinquencies.
Branded products delivered through
The bank successfully established call center for efficient delivery channels
effective client contact, tele-marketing for retail products
and services and channels to optimize products and
services delivery through customer centric architecture.
The bank has a deep routed customer focus. NBP

enjoys the largest Customer base in Pakistan. In the
year under review the bank increased its deposits by Rs.
38 billion. NBP strategy is to maintain existing leadership
position on the back of its brand image and strength and
is focused on effective deposit mobilization with launch
of more convenience based products and bundled
offerings. The bank is focusing on increasing deposit
share with the help of upgraded branch infrastructure,
service quality and introduction of alternate delivery
channels like improving existing ATM infrastructure and
on-line banking. The bank has launched “Premium
Saver Account” (PLS Saving Account) and Premium
Amdani Certificate (Monthly Income Scheme Account)
offering attractive rates to small depositors.
Directors’ Report
SME LENDING Creation of social and economic uplift through

structured program for Micro-credit, Consumer,
The overall potential within the sector is considered very Agriculture, SME and Commercial Purposes
attractive and with an increasing emphasis by both
foreign and local banks towards this sector, overall
growth is expected to be much higher than witnessed in
the past. The bank's SME approach is geared towards
changing customer needs with specialized market
driven strategies, as well as strengthening internal
systems and procedures for achieving operating
efficiency.
The bank is re-aligning towards understanding SME

business for better market penetration through existing
products and offering new products structured according
to the needs of various sectors having high growth
potential. For the year under review, staff was imparted
training by the Shore Bank USA, a US based bank on
cash flow lending model and the model is being
successfully implemented at selective branches.
MICRO CREDIT
Expanding customer base through schemes
In the last quarter of 2006 NBP launched “NBP Karobar” structured to ensure accessibility
under the “President's Rozgar” scheme for increasing
outreach in un-banked market segment. Planned
to un-banked customers
disbursement of approximately PKR 105 BN is aimed at
uplifting the lifestyle of approximately 2 MN potential
customers in the span of 5 years. Overall NBP Karobar is
expected to uplift the lifestyle of an expected 5.4 MN
citizens of Pakistan including direct and indirect
beneficiaries of this product. This product is broadly
aimed to benefit the overall economy by employment
creation on fast track and sustainable basis, accessibility
to a better lifestyle, availability of low cost environment
friendly transportation solution with larger and quicker
outreach to remote areas and development of the
telecommunication sector by promoting wireless local
loop in remote areas.
AGRICULTURE
NBP is the largest agriculture lender in the banking sector

and has been able to increase existing portfolio reflecting
increasing market share and focused business
development strategies based on capacity enhancement
of farmers and non farm customers. Continued training of
staff is being imparted for agriculture finance products.
NBP aims to grow its share of advances in the agriculture
market by offering price effective solutions which are
focused towards value addition for customers, while remaining competitive as compared with peer banks. The bank's
objective is to provide support to the farming customers through easy access to credit, technical knowledge, development
of new products based on the unique requirements and provision of flexible repayment options to customers.
Directors’ Report
SPECIAL ASSETS MANAGEMENT
With the provision coverage of 82% we believe that non-performing loans can contribute substantially in the bank's
profitability through future recoveries. Special Asset Management Group is primarily responsible for monitoring and
settlement of non-performing loans (NPLs) portfolio and success was achieved in this area due to vigorous recovery
efforts.
INTERNATIONAL OPERATIONS
Overseas operations focus on specific objectives for business development & growth in trade finance and remittance. The
bank's international presence in Pakistan's major trading partners is a key asset enabling the bank to provide
comprehensive financial services to its customers. The bank is pursuing strategic partnerships with indigenous
correspondent banks where NBP does not have branches. NBP was granted license to open branch in Saudi Arabia which
is expected to contribute in overall profitability of the bank on account of the large Pakistani community and outlook for
tapping substantial trade Hajj and Umrah business from this region. In addition to the above NBP plans to start operations
in Canada and India, and open more branches in Afghanistan, Central Asia and Bangladesh.
ISLAMIC BANKING
The bank opened its first Islamic banking branch in 2006 to tap the huge unmet demands of this segment. This is expected
to attract new customers besides increasing revenue.
TREASURY MANAGEMENT
The Treasury Management Group provides solutions

for financial transactions for institutional and large
customers in addition to the role of leading money
market player in the country. The bank is looking
forward to launch new innovative products to increase
revenue streams and product diversification. The
bank was awarded “Best Foreign Exchange Bank -
Pakistan” award for the year 2006 by the financial
journal “Global Finance”.
FINANCIAL INSTITUTION AND CASH

MANAGEMENT
A dedicated Financial Institution and Cash

Management Division has been set up to tab cash
management and trade related business using pricing
and efficient services through tailored products and
services. The bank is focusing heavily on increase in market share in cash management services, offer new cash
management solutions based on market trends and practices ,marketing of remittances and trade finance business ,
reduce service turn around time and improve overall service quality. The bank offers structured products for strengthening
corresponding banks relationships and competitive solutions to other banks and cash management companies, including
other business groups of NBP.
The bank successfully automated government collections and is giving top priority for improving the standards of service
for the Government revenue collection.
Directors’ Report
OPERATIONS Cost rationalization for operating

efficiency and profitability
NBP is transforming its image and customer perception as a
modern bank through branch renovation and re-location of old
branches to more convenient and accessible locations. Brand
recognition and awareness is the priority through the use of
standard NBP signage at all NBP locations and
standardization of all levels. The indigenous concept of
'putting a smile on our customer's face' is being introduced
which targets customer convenience, while customer care
remains the crux of this concept inculcating traits of courtesy.
The concept further encompasses the staff with modern
banking practices and solutions for coping with market
competition through counseling and training.
INFORMATION TECHNOLOGY
Changing dynamics and future bank strategy requires IT to act

as a service provider and strategic partner for the business
units. IT system is being re-aligned and existing IT
infrastructure is being upgraded to support effective and more
efficient operations within the Bank. The bank is expanding its ATM network. Virtual Private Network has been set up and
Network connectivity is being strengthened to ensure smooth functioning and data centralization.
HUMAN RESOURCE Deliverance of social responsibilities in line

with the vision, such as equal employment
The bank truly values its staff and the vital role they play
opportunity to physically challenged
in successful running of the
Continuous development bank. The bank gives individuals, gender empowerment and
through skill set evaluation s p e c i a l a t t e n t i o n t o sponsorship incentives to sporting events.
and training of resources attracting, developing and
retaining good quality
human resource. HR
initiatives and strategy is
aimed at competitive
employee compensation,
training need assessment
and succession planning.
Training has been given
priority based on industry
dynamics and changing
customer needs. NBP is
striving to become an
employer of choice through
Improved HR policies and competitive remuneration.
RISK MANAGEMENT
During the year the State Bank of Pakistan issued directives on the adoption of Capital Adequacy Standards under Basel II
framework. These directives set out the new capital adequacy rules for calculating and maintaining the minimum capital
requirements. The frame work is intended to strengthen risk management and market discipline and increase the
soundness of the banking system. The bank has separate Risk Review Division positioned to meet the challenges posed
by the new capital accord. Core policies and processes are designed based on regulatory framework, including guidelines
issued by SBP.
Directors’ Report
CREDIT RATING
Moody's maintained NBP's financial strength rating at D-reflecting the bank's important franchise and leading market share
in Pakistan. JCR- VIS Credit Rating Company Limited has also maintained the bank's medium to long term standalone
rating at AA+ with a stable outlook and has re-affirmed the bank's entity rating of AAA/ A-1+. The bank's rating is one of the
highest in the sector.
SOCIAL RESPONSIBILITY
The bank has nurtured a strong commitment towards the community. The bank's sponsorship and participation in a variety
of community activities are clear manifestation of discharging our responsibility as a good corporate citizen of Pakistan.
Our efforts are a reflection of our commitment to our country and our responsibility to work for its welfare and advancement.
NBP is also playing an active role for promoting sports in the country and sponsored many events during 2006.
Going forward the bank would pursue growth opportunities through Optimizing branch network
catering to the new segments and offering new broader spectrum of locally and internationally
products, diversifying customer base and deepening relationship with the
clients. To position ourselves for future growth and continued success and
realizing the bank's vision,
Optimum utilization of bank’s strategic the bank is transitioning
assets and entering into strategic into a modern bank geared
business alliance and ventures. to offer a competitive
product mix, state of the art
delivery channels, and
superior service quality
which envisages offering of
new branded products
delivered through efficient
delivery channels,
customer relationship
continuity and cross selling,
succession planning and
b u s i n e s s c o n t i n u i t y,
Optimizing branch network
locally and internationally,
expanding customer base
through schemes structured to ensure accessibility to un-banked
customers and creation of social and economic uplift through structured
programs for all segments.
CORPORATE AND FINANCIAL REPORTING FRAMEWORK (CODE OF CORPORATE GOVERNANCE)
The Board is fully aware of its responsibilities established by the Code of Corporate Governance issued by the Securities &
Exchange Commission of Pakistan (SECP). The Directors are pleased to give the following declarations/statements to
comply with the requirements of the Code.
(a) The financial statements (Balance Sheet, Profit & Loss Account, Cash Flow Statement, Statement of Changes
in Equity and notes forming part thereof), prepared by the management of the bank give the information in the
manner so required and respectively give a true and fair view of the state of the bank's affairs as at December
31, 2006 and of the results of its operations, changes in equity and its cash flows for the year then ended.
(b) Proper books of accounts have been maintained.

Directors’ Report
(c) Appropriate accounting policies have been consistently applied in the preparation of the financial statements and
accounting estimates are based on the reasonable and prudent judgement.
(d) Approved accounting standards which comprise of such International Financial Reporting Standards, as
applicable in Pakistan have been followed in preparation of the financial statements and departure there from,
if any has been adequately disclosed.
(e) The system of internal control is sound in design and has been effectively implemented and monitored
throughout the year. The Board is responsible for establishing and maintaining the system of internal control in
the bank and for its ongoing monitoring. However, such a system is designed to manage rather than eliminate
the risk of failure to achieve objectives, and provide reasonable but not absolute assurance against material
misstatements or loss.
The process used by the Board to review the efficiency and effectiveness of the system of internal control includes, the
following:
The Board has formed various committees comprising of non-executive directors. .
Internal audit department of the bank conducts the audit of all branches, regions and groups at Head Office level
on an ongoing basis to evaluate the efficiency and effectiveness of internal control system and proper follow up of
irregularities and control weaknesses is carried out.
The Board receives confirmations / representations from all groups and regional heads on annual basis
confirming effectiveness of the internal control system established and maintained by them within their
function.
The principal features of the bank's control framework include:
The bank has clearly defined organizational structure, which supports clear lines of communications and
reporting relationships.
There exists properly defined financial and administrative powers of various committees and key
management personnel, which supports delegations of authority and accountability.
The bank has effective budgeting system in place. Annual budget of the bank is approved by the Board and
monthly comparisons of actual results with the budget are prepared and reviewed by the senior
management.
The bank has a comprehensive framework of written policies and procedures on all major areas of operations
such as Credit, Treasury Operations, Finance, Internal audit and Compliance approved by the Board.
(f) There are no significant doubts about the bank's ability to continue as a going concern.
(g) There has been no material departure from the best practices of the corporate governance as detailed in the
listing regulations.
(h) Key operating and financial data is available in the annual report.
The number of board meetings held during the year was 12 and attended by the directors as follows:
Syed Ali Raza 12
Dr. Waqar Masood Khan 11
Mr. Iftikhar Ali Malik 8
Syed Shafqat Ali Shah Jamote 8
Mr. Sikandar Hayat Jamali 8
Mr. Muhammad Khalid Malik 6
Mr. M. Zubair Motiwala 9
Mr. Azam Faruque 9
Directors’ Report
(j) Value of investments of Employees' Pension Fund and Employees Provident Fund as at December 31, 2006
(un-audited) was as follows:
Rs. in thousand
Employees Pension Fund 17,333,982

Employees Provident Fund 7,397,487
PATTERN OF SHARE HOLDING
The pattern of share holding as at December 31, 2006 is annexed with the report.
EARNINGS PER SHARE
After-tax earnings per share for the year 2006 is Rs.24.01.
APPOINTMENT OF AUDITORS
The Board of Directors on the recommendation of Audit Committee has recommended name of Messers Ford Rhodes
Sidat Hyder & Co. Chartered Accountants and M. Yousuf Adil Saleem & Co. Chartered Accountants as statutory auditors
for the year ending December 31, 2007. Both the firms being eligible offer themselves for reappointment.
RISK MANAGEMENT FRAMEWORK
NBP Board of Directors and Senior Management is fully Qualitative improvement in systems
committed to strengthen the Risk Management structure and and controls
practices in NBP. A number of initiatives taken and planned by
NBP, in this regard reflects management commitment to
upgrade the quality of the risk management process, such as
the formation of a Board level Risk Management Committee;
Basel II Gap Analysis Exercises; implementation of Risk
Management Software for managing Credit Risk, continuous
improvement in the policies, procedures and reporting for
effective risk management and shift from fixed mark-up rate
structures to floating rates of mark-up for managing interest
rate risk.
REPORTING OF INTERNAL CONTROL SYSTEM
Bank's management has established and is managing an

adequate and effective system of internal control which
encompasses the policies, procedures, processes and tasks
As approved by the Board of Directors that facilitate effective and efficient operations. The management and the
employees at all levels within the Bank are required to perform as per these approved Internal Control System
components. The Internal Control System ensures quality of external and internal reporting, maintenance of proper
records and processes, compliance with applicable laws and regulations and internal policies with respect to conduct of
business.
The management ensures that an efficient and effective Internal Control System is in place by identifying control
objectives, reviewing existing procedures and policies and ensuring that control procedure and policies are amended for
time to time whenever required.
However, Internal Control System is designed to manage rather than eliminate the risk of failure to achieve objectives and
provide reasonable but not absolute assurance against material misstatement or loss.
Directors’ Report
EVALUATION OF INTERNAL CONTROL
The Bank has an independent Internal Audit Group that conducts audit of all Branches, Regions and Groups at Head Office
on an on-going basis to evaluate the efficiency and effectiveness of Internal Control System. In addition to that Compliance
Group is also in place with independent Compliance Officer in 119 Branches and 29 Regional Compliance Chiefs with
supporting staff to take care of compliance related issues to strengthen the control environment.
For the year 2005 the bank has made its best efforts to ensure that an effective Internal Control System continues to
perform in letter and sprit. The observation made by the external and internal auditors are reviewed and measures are
taken by the management to address the Internal Control.
We assess that the Internal Control environment is showing signs of improvement as compared to previous years in all
areas of the bank. The bank is endeavoring to further refine its internal control design and assessment process as per
guidelines issued by the State Bank of Pakistan. Accordingly Bank is making all possible efforts to improve the professional
skills and competency level of the staff through need based training programs.
Finally we extend our appreciation to the bank's staff for their commitment, dedication and hard work in achieving these
excellent results. We would like to express our appreciation to our stakeholders, regulators and our valued customers for
their support and continued confidence in NBP.
On behalf of the Board of Directors
S. Ali Raza
Date: February 24, 2007

Statement of Compliance with Code of Corporate Governance
(for the year ended December 31, 2006)
This statement is being presented to comply with the code of Corporate Governance (the Code) contained in the
Regulation No.37, XIII & 36 of listing Regulations of Karachi, Lahore & Islamabad Stock Exchange (Guarantee) Limited for
the purpose of establishing a framework of good governance, whereby a listed Company is managed in compliance with
the best practice of Corporate Governance.
The Bank has complied with the principles contained in the Code in the following manner.
1. The Board of Directors of the Bank is appointed by the Government of Pakistan (GoP) as per the provisions of
the Banks' (Nationalization) Act 1974. At present all the Directors (except for the President / Chief Executive w h o
is also the Chairman of the Board) are independent non-executive Directors. However, as regards appointment of
Directors representing Minority Shareholders as required by the Code, the Government has already made
amendment in the Banks Nationalization Act, 1974.
2. The Directors have confirmed that none of them is serving as a Director in more than ten listed Companies
including the Bank.
3. All the Directors of the Bank are registered as Tax Payers and none of them has defaulted in payment of any loan to
Banking Company, a DFI or an NBFI or being a member of Stock Exchange, has been declared as defaulter by that
Stock Exchange.
4. No casual vacancy on the Board occurred during the year.
5. The Directors have confirmed that neither they nor their spouses are engaged in the Business of Stock Brokerage.
6. The Bank has prepared 'Statement of Ethics and Business Practices' which is already approved by the Board of
Directors.
7. The Board has approved the Vision, Mission, Core Values and NBP Strategic Plan 2007-2011.
8. The Bank has comprehensive frame work of written policies and procedures on all major areas of operations such
as Credit, Treasury Operations, Finance, Internal Audit and Compliance etc. while many of these policies have
been approved by the Board and are being constantly reviewed.
9. There exists in the Bank a framework defining the limit of the authority of various management levels. All the
powers were exercised by the relevant authorities within the materiality thresholds.
10. All the Powers of the Board have been duly exercised and decisions on material transactions have been taken by
the Board.
11. The meetings of Board of Directors were presided over by the Chairman. Board met 12 times during the year.
Written notices of the board meetings, alongwith agenda and working papers were circulated at least seven days
before the meetings. The minutes of the meetings were appropriately recorded.
12. The Bank held orientation course for the directors in January 2005.
13. The appointment of CFO, Company Secretary and Head of Internal Audit, including their remuneration and terms
and conditions of employment are duly approved by the Board.
14. The Director's Report for the year has been prepared in compliance with the Code and fully describes the salient
matters described in the Annual Report.
15. The Financial Statements of the Bank were duly endorsed by CEO and CFO before approval of the Board.
16. The Directors, CEO and Executives have confirmed that they do not hold any interest in the shares of the Bank
except as mentioned in the report.
Statement of Compliance with Code of Corporate Governance
17. The Bank has complied with all the Corporate and Financial Reporting requirements of the Code.
18. The Board has formed an Audit Committee comprising of three Non-Executive Directors.
19. The Meetings of Audit Committee were held 8 times including meetings held prior to the approval of Interim and
Final Results as required by the Code. The terms of reference of the committee have been framed and advised to
the Committee for compliance.
20. The Board has setup an effective Internal audit function. All the Branches, Regions and Groups are subjected to
Audit. All the Internal Audit Reports are accessible to the Audit Committee and important points arising out of audit
are reviewed by the Audit Committee and important points requiring Board's attention are brought into their notice.
21. The Statutory Auditors of the Bank have confirmed that they have been given a satisfactory rating under the
Quality Control Review Program of the institute of Chartered Accountants of Pakistan, that they or any of partners
of the firms, their spouses and minor children do not hold Shares of the Bank and that the firms and all of their
partners are in compliance with International Federation of Accountants (IFA) on Code of Ethics as adopted by the
Institute of Chartered Accountants of Pakistan.
22. The Statutory Auditors or the persons associated with them have not been appointed to provide other services
except in accordance with the Listing Regulations and the auditors have confirmed that they have observed IFA
guidelines in this regard.
23. We confirm that all other material principles contained in the code have been complied.
On behalf of the Board of Directors.
S. Ali Raza
Dated: February 24, 2007

Auditors’ Review Report to the Members
Auditors' Review Report to the Members on Statement of

Compliance with best Practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best practices (the Statement) contained in
the Code of Corporate Governance (the Code) prepared by the Board of Directors of National Bank of
Pakistan (the Bank) to comply with the Regulation G-I of the Prudential Regulations for Corporate /
Commercial Banking issued by the State Bank of Pakistan, Listing Regulation No. 37 of the Karachi
Stock Exchange, Chapter XIII of the Lahore Stock Exchange and Chapter XI of the Islamabad Stock
Exchange where the Bank is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Bank. Our
responsibility is to review, to the extent where such compliance can be objectively verified, whether the
Statement reflects the status of the Bank's compliance with the provisions of the code and report if it
does not. A review is limited primarily to inquires of the Bank personnel and review of various
documents prepared by the Bank to comply with the code.
As part of our audit of the financial statement we are required to obtain an understanding of the
accounting and internal control systems sufficient to plan the audit and develop an effective audit
approach. We have not carried out any special review of the internal control system to enable us to
express an opinion as to whether the Board's statement on internal control covers all controls and the
effectiveness of such internal controls.
Based on our review, nothing has come to our attention which causes us to believe that the Statement
does not appropriately reflect the Bank's compliance in all material respects, with the best practice
contained in the Code as applicable to the Bank for the year ended December 31, 2006.
Ford Rhodes Sidat Hyder & Co. M. Yousuf Adil Saleem & Co.
Chartered Accountants Chartered Accountants
Karachi Karachi

Auditors’ Report to the Members
We have audited the annexed balance sheet of National Bank of Pakistan (the bank) as at December 31, 2006 and the
related profit and loss account, statement of changes in equity and cash flow statement, together with the notes forming
part thereof (here-in-after referred to as the 'financial statements') for the year then ended, in which are incorporated the
unaudited certified returns from the branches except for the sixty branches which have been audited by us and fourteen
branches audited by auditors abroad and we state that we have obtained all the information and explanations which, to the
best of our knowledge and belief were necessary for the purpose of our audit.
It is the responsibility of the bank's Board of Directors to establish and maintain a system of internal control, and
prepare and present the financial statements in conformity with approved accounting standards and the requirements of
the Banking Companies Ordinance, 1962 (LVII of 1962) and the Companies Ordinance, 1984 (XLVII of 1984). Our
responsibility is to express an opinion on these statements based on our audit. The financial statements of the bank for the
year ended December 31, 2005 were audited by Ford Rhodes Sidat Hyder & Co, Chartered Accountant, and KPMG Taseer
Hadi & Co. Chartered Accountants, whose report dated March 18, 2006 expressed an unqualified opinion thereon.
We conducted our audit in accordance with the International Standard on Auditing as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting
amounts and disclosures in the financial statements. An audit also includes assessing the accounting policies and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We
believe that our audit provides a reasonable basis for our opinion and after due verification, which in case of loans and
advances covered more than sixty percent of the total loans and advances of the bank, we report that:
(a) in our opinion proper books of account have been kept by the bank as required by the Companies Ordinance,
1984 (XLVII of 1984) and the returns referred to above received from the branches have been found adequate
for the purposes of our audit;
(b) in our opinion:
(i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in
conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies
Ordinance, 1984 (XLVII of 1984), and are in agreement with the books of account and are further in
accordance with accounting policies consistently applied except for the changes stated in note 5.1 with
which we concur.
(ii) the expenditure incurred during the year was for the purpose of the bank's business: and
(iii) the business conducted, investments made and the expenditure incurred during the year were in
accordance with the objects of the bank and the transactions of the bank which have come to our
notice have been within the powers of the bank;
(c) In our opinion and to the best of our information and according to the explanations given to us the
balance sheet, profit and loss account, statement of changes in equity and cash flow statement
together with the notes forming part thereof conform with approved accounting standards as applicable in
Pakistan and give the information required by the Banking Companies Ordinance, 1962 (LVII of 1962),
and the Companies Ordinance, 1984 (XLVII of 1984), in the manner so required and give a true and fair
view of the state of the bank's affair as at December 31, 2006 and its true balance of the profit, changes in
equity and its cash flows for the year then ended; and
(d) in our opinion zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980),
was deducted by the bank and deposited in the Central Zakat Fund established under Section 7 of
that Ordinance.
FORD RHODES SIDAT HYDER & CO. M. YOUSUF ADIL SALEEM & CO.
Karachi Karachi
Dated: February 24, 2007

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FINANCIAL
STATEMENTS - 2006
33
Balance Sheet
(as at December 31, 2006)
2005 2006 2006 2005

(Restated) (Restated)
Note
US Dollar in ‘000 Rupees in ‘000
ASSETS
1,169,272 1,291,267 Cash and balances with treasury banks 6 78,625,227 71,196,956
509,432 667,461 Balances with other banks 7 40,641,679 31,019,330
267,416 377,939 Lendings to financial institutions 8 23,012,732 16,282,942
2,578,180 2,298,358 Investments 9 139,946,995 156,985,378
4,415,154 5,191,498 Advances 10 316,110,406 268,838,779
155,270 159,008 Operating fixed assets 11 9,681,974 9,454,365
- . - . Deferred tax assets - - .
393,185 445,290 Other assets 12 27,113,698 23,941,056
9,487,909 10,430,821 635,132,711 577,718,806
LIABILITIES
28,595 174,177 Bills payable 13 10,605,663 1,741,156

143,814 192,217 Borrowings 14 11,704,079 8,756,847
7,610,882 8,242,277 Deposits and other accounts 15 501,872,243 463,426,602
- . - Sub-ordinated loans - - .
Liabilities against assets subject
273 217 to finance lease 16 13,235 16,629
73,291 39,203 Deferred tax liabilities 17 2,387,073 4,462,718
385,891 436,793 Other liabilities 18 26,596,300 23,496,910
8,242,746 9,084,884 553,178,593 501,900,862
1,245,163 1,345,937 NET ASSETS 81,954,118 75,817,944
REPRESENTED BY
97,043 116,451 Share capital 19 7,090,712 5,908,927

202,895 227,940 Reserves 13,879,260 12,354,256
318,156 526,764 Unappropriated profit 32,074,677 19,372,523
618,094 871,155 53,044,649 37,635,706
627,069 474,782 Surplus on revaluation of assets 20 28,909,469 38,182,238
1,245,163 1,345,937 81,954,118 75,817,944
CONTINGENCIES AND COMMITMENTS 21
The annexed notes 1 to 45 form an integral part of these financial statements.
Syed Ali Raza Dr. Waqar Masood Khan Sikandar Hayat Jamali M. Zubair Motiwala
Chairman & President Director Director Director
Profit and Loss Account
2005 2006 2006 2005

US Dollar in ‘000 Note Rupees in ‘000
553,337 719,143 Mark-up/return/interest earned 23 43,788,628 33,692,665

169,515 223,927 Mark-up/return/interest expensed 24 13,634,912 10,321,768
383,822 495,216 Net mark-up/ interest income 30,153,716 23,370,897
40,183 50,513 Provision against non-performing loans and advances 10.3 3,075,723 2,446,739
(4,038) (11,652) Provision for diminution in the value of investments 9.12 (709,461) (245,881)
379 87 Bad debts written off directly 10.5 5,284 23,069
36,524 38,948 2,371,546 2,223,927
347,298 456,268 Net mark-up/ interest income after provisions 27,782,170 21,146,970
NON MARK-UP/INTEREST INCOME

80,910 100,914 Fee, commission and brokerage income 6,144,628 4,926,604
28,223 47,491 Dividend income 2,891,755 1,718,478
19,800 21,906 Income from dealing in foreign currencies 25 1,333,840 1,205,638
22,430 19,207 Gain on sale of securities 26 1,169,515 1,365,771
- - Unrealized loss on revaluation of
(33) (73) investments classified as held for trading 9.14 (4,464) (1,979)
2,921 10,307 Other income 27 627,618 177,839
154,251 199,752 Total non-markup/interest income 12,162,892 9,392,351
501,549 656,020 39,945,062 30,539,321
NON MARK-UP/INTEREST EXPENSES

184,296 220,782 Administrative expenses 28 13,443,441 11, 221,789
3,257 (284) Other (reversals) / provisions / write offs (17,283) 198,298
1,038 3,421 Other charges 29 208,327 63,206
188,591 223,919 Total non-markup/interest expenses 13,634,485 11, 483,293
312,958 432,101 26,310,577 19,056,028
- - Extra ordinary/unusual items - -
312,958 432,101 Profit Before Taxation 26,310,577 19,056,028
117,491 142,808 Taxation - Current 8,695,598 7,154,002
(18,044) 8,715 - Prior year(s) 530,652 (1,098,709)
4,784 1,018 - Deferred 61,981 291,291
104,231 152,541 30 9,288,231 6,346,584
208,727 279,560 Profit After Taxation 17,022,346 12,709,444
178,768 318,156 Unappropriated profit brought forward 19,372,523 10,885,184
387,495 597,716 Profit available for appropriation 36,394,869 23,594,628
0.29 0.39 Basic Earnings per share (Rupees) 31 24.01 17.92
0.29 0.39 Diluted Earnings per share (Rupees) 32 24.01 17.92
Cash Flow Statement
2005 2006 2006 2005

US Dollar in ‘000 Note Rupees in ‘000
CASH FLOWS FROM OPERATING ACTIVITIES
312,958 432,100 Profit before taxation 26,310,577 19,056,028

(28,223) (47,491) Less: Dividend income (2,891,755) (1,718,478)
284,735 384,609 23,418,822 17,337,550
Adjustments:
9,286 7,962 Depreciation 484,810 565,398
34 30 Amortization 1,824 2,040
40,183 50,513 Provision against non-performing advances 3,075,723 2,446,739
(4,038) (11,652) Provision for diminution in the value of investments (709,461) (245,881)
(294) (137) Gain on sale of fixed assets (8,350) (17,922)
36 30 Financial charges on leased assets 1,830 2,216
379 87 Bad debts written off directly 5,284 23,069
(470) - Reversal for voluntary handshake scheme - (28,635)
3,257 (284) Other(reversals) / provisions (17,283) 198,298
48,373 46,549 2,834,377 2,945,322
333,108 431,158 26,253,199 20,282,872
(Increase)/decrease in operating assets
(94,788) (110,524) Lendings to financial institutions (6,729,790) (5,771,620)
4,583 (2,357) Held-for-trading securities (143,532) 279,072
(829,603) (826,944) Advances (50,352,634) (50,514,512)
(49,821) (62,804) Other assets (3,824,108) (3,033,624)
(969,629) (1,002,629) (61,050,064) (59,040,684)
Increase/(decrease) in operating liabilities
(89,892) 145,582 Bills payable 8,864,507 (5,473,515)
(28,327) 51,342 Borrowings 3,126,198 (1,724,818)
(35,229) 631,395 Deposits 38,445,641 (2,145,115)
19,165 50,858 Other liabilities (excluding current taxation) 3,096,763 1,166,962
(134,283) 879,177 53,533,109 (8,176,486)
(131,704) (140,540) Income tax paid (8,557,501) (8,019,454)
445 - Voluntary handshake scheme cost received - 27,106
(36) (30) Financial charges paid (1,830) (2,216)
(131,295) (140,570) (8,559,331) (7,994,564)
(902,099 ) 167,136 Net cash from / (used in) operating activities 10,176,913 (54,928,862)
CASH FLOWS FROM INVESTING ACTIVITIES

101,652 142,086 Net investments in available-for-sale securities 8,651,609 6,189,586
118,132 (34,358) Net investments in held-to-maturity securities (2,092,069) 7,193,074
28,223 47,491 Dividend income received 2,891,755 1,718,478
(13,211) (11,746) Investment in operating fixed assets (715,215) (804,423)
(488) (616) Investment in subsidiaries, associates and joint ventures (37,499) (29,705)
392 219 Sale proceeds of property and equipment disposed off 13,342 23,861
234,700 143,076 Net cash from investing activities 8,711,923 14,290,871
(667,399) 310,212
CASH FLOWS FROM FINANCING ACTIVITIES
(341) (122) Payments of lease obligations (7,414) (20,779)
(12,096) (24,218) Dividend paid (1,474,605) (736,529)
(12,437) (24,340) Net cash used in financing activities (1,482,019) (757,308)
(275) (2,911) Effects of exchange rate changes on cash and cash equivalents (177,231) (16,726)
(680,111) 282,961 Increase / (decrease) in cash and cash equivalents 17,229,586 (41,412,025)
2,348,423 1,668,312 Cash and cash equivalents at beginning of the year 33 101,583,535 142,995,560
1,668,312 1,951,273 Cash and cash equivalents at end of the year 33 118,813,121 101,583,535
Annexed notes 1 to 45 form an integral part of these financial statements.
Statement of changes in Equity
Reserves
Capital Statutory Revenue
Share Exchange Issue of General Unappropriated Total
Capital equalisation bonus shares Profit
Balance as at January 1, 2005 as previously reported 4,924,106 3,874,481 984,821 5,738,973 521,338 9,213,565 25,257,284
Effect of change in accounting policy (*) - (305,699) - - - (51,818) (357,517)
Effect of change in accounting policy (refer to note 5.1)
Transfer to reserve for issue of bonus shares - - (984,821) - - 984,821 -
Proposed cash dividend - - - - - 738,616 738,616

(984,821) - 1,723,437 738,616
Balance as at January 1, 2005 (restated) 4,924,106 3,568,782 - -
5,738,973 521,338 10,885,184 25,638,383
Exchange adjustments on revaluation of capital

of foreign branches - (16,726) - - - - (16,726)
Transfer from surplus on revaluation of fixed assets-

incremental depreciation - net of tax - - - - - 43,221 43,221
Net income recognised directly in equity - (16,726) - - - 43,221 26,495
Profit after taxation for the year ended

December 31, 2005 - - - - - 12,709,444 12,709,444
Total recognised income and expense for the period - (16,726) - - - 12,752,665 12,735,939
Issue of bonus shares 20% 984,821 - - - - (984,821) -
Cash dividend (Rs.1.5 per share) - - - - - (738,616) (738,616)
Transfer to statutory reserve - - - 2,541,889 - (2,541,889) -
Balance as at December 31, 2005 (restated) 5,908,927 3,552,056 - 8,280,862 521,338 19,372,523 37,635,706
Balance as at January 1, 2006 as previously reported 5,908,927 3,552,056 1,181,785 8,280,862 521.338 16,713,506 36,158,474

Transfer to reserve for issue of bonus shares - - (1,181,785) - - 1,181,785 -
Proposed cash dividend - - - - - 1,477,232 1,477,232

- - (1,181,785) - - 2,659,017 1,477,232
Balance as at January 1, 2006 (restated) 5,908,927 3,552,056 - 8,280,862 521,338 19,372,523 37,635,706
Exchange adjustments on revaluation of capital - 321,265 - - - - 321,265

of foreign branches
- (498,496) - - - - (498,496)
Adjustment due to closure of Cairo branch

incremental depreciation - net of tax - - - - - 41,060 41,060
Net income recognised directly in equity - (177,231) - - - 41,060 (136,171)

December 31, 2006 - - - - - 17,022,346 17,022,346
Total recognised income and expense for the period - (177,231) - - - 17,063,406 16,886,175
Issue of bonus shares 20% 1,181,785 - - - - (1,181,785) -

Cash dividend (Rs.2.5 per share) - - - - - (1,477,232) (1,477,232)
Transfer to statutory reserve - - - 1,702,235 - (1,702,235) -
Balance as at December 31, 2006 7,090,712 3,374,825 - 9,983,097 521,338 32,074,677 53,044,649
* During 2005, the bank had changed its accounting policy in respect of accounting for investment in joint venture company. Previously the investment was accounted for under
the equity method which has now been stated at cost as required by the revised IAS 31 "Investment in Joint Venture" and IAS 27 "Consolidated and Separate Financial
Statements" effective for financial periods beginning on or after January 1, 2005. This change in accounting policy had been accounted for retrospectively in accordance with
IAS - 8 "Accounting Policies, Changes in Accounting Estimates and Errors".
Notes to the Financial Statements
1. STATUS AND NATURE OF BUSINESS
National Bank of Pakistan (the bank) was incorporated in Pakistan under the National Bank of Pakistan
Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. Its registered and head office is situated at I.I.
Chundrigar Road, Karachi. The bank is engaged in providing commercial banking and related services in Pakistan
and overseas. The bank also handles treasury transactions for the Government of Pakistan (GoP) as an agent to
the State Bank of Pakistan (SBP). The bank operates 1,232 (2005: 1,224) branches in Pakistan and 18 (2005: 18)
overseas branches (including the Export Processing Zone branch, Karachi). Under a Trust Deed, the bank also
provides services as trustee to National Investment Trust (NIT) including safe custody of securities on behalf of
NIT.
2. BASIS OF PRESENTATION
In accordance with the directives of the Federal Government of Pakistan regarding the shifting of the banking
system to Islamic modes, the SBP has issued various circulars from time to time. Permissible form of trade related
mode of financing includes purchase of goods by the bank from their customers and immediate resale to them at
appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these
arrangements are not reflected in these financial statements as such but are restricted to the amount of facility
actually utilized and the appropriate portion of mark-up thereon.
Separate financial statements
These financial statements are separate financial statements of the bank in which the investments are accounted
for on the basis of direct equity interest rather than on the basis of reported results and net assets of the investees.
Upto last year the Securities and Exchange Commission of Pakistan (SECP) had granted an exemption to the
bank under sub-section (8) of section 237 of the Companies Ordinance, 1984 from the application of sub sections
(1) to sub-section (7) of section 237 of the Companies Ordinance, 1984 in respect of preparation of consolidated
financial statements. However, from this year the investments are being accounted for on the basis of reported
results and net assets of the investees in the consolidated financial statements of the bank and its subsidiary
companies.
US Dollar equivalent
The US Dollar amounts shown on the balance sheet, profit and loss account and cash flow statement are stated
as additional information solely for the convenience of readers. For the purpose of conversion to US Dollars, the
rate of Rs.60.89 to one US Dollar has been used for both 2006 and 2005 as it was the prevalent rate as on
December 31, 2006.
3. STATEMENT OF COMPLIANCE
These financial statements are prepared in accordance with the directives issued by the State Bank of Pakistan,
the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and approved accounting standards
as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting
Standards as are notified under the provisions of the Companies Ordinance, 1984. Wherever the requirements of
the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 or directives issued by the State Bank
of Pakistan and the Securities and Exchange Commission of Pakistan differ with the requirements of these
standards, the requirements of Banking Companies Ordinance, 1962, the Companies Ordinance, 1984, and the
requirements of the said directives take precedence.
The SECP has approved the adoption of International Accounting Standard 39, “Financial Instruments:
Recognition and Measurement” and International Accounting Standard 40, “Investment Property”, The
requirements of these standards have not been taken into account for the purpose of these financial statements as
the implementation of the said standard has been deferred by SBP, vide BSD circular number 10 dated August 26,
2002, for banks in Pakistan till further instructions. However, investments have been classified and valued in
accordance with the requirements of various circular issued by SBP.
4. BASIS OF MEASUREMENT
These financial statements have been prepared under the historical cost convention as modified by revaluation of
land and buildings and valuation of certain investments and derivative financial instruments at fair value.
The preparation of financial statements in conformity with approved accounting standards and statutory
requirements require the use of critical accounting estimates. It also requires management to exercise its
judgment in the process of applying accounting policies. The areas involving a higher degree of judgment or
complexity or areas where assumptions and estimates are significant to the financial statements are disclosed
below:
4.1 Accounting estimates and judgments
a. Provision against non performing loans and advances
The bank reviews its loan portfolio to assess amount of non performing loans and advances and provision
required there against on a quarterly basis. While assessing this requirement various factors including the
delinquency in the account, financial position of the borrower, the forced sale value of securities and requirements
of prudential regulations are considered. The estimates of forced sale values are supported by independent
valuations of the assets mortgaged/ pledged.
Last year the management based on a review of the bank's portfolio of branches affected by the earthquake
and the security there against had made an estimated general provision of Rs.450 million. During 2006 no further
damages were reported therefore management, based on its review of this portfolio, considers no further provision
to be made against the porfolio and provision required as at December 31, 2006 is Rs. 332 million.
The amount of general provision against consumer advances is determined in accordance with the relevant
prudential regulations. The data about historical experience is being accumulated.
b. Fair value of derivatives
The fair value of derivatives which are not quoted in active markets are determined by using valuation techniques.
The valuation techniques take into account the relevant interest rates in effect at the balance sheet date and the
rates contracted.
c. Impairment of available for-sale equity investments
The bank determines that available-for-sale equity investments are impaired when there has been a significant
or prolonged decline in the fair value below its cost. This determination of what is significant or prolonged
requires judgment. In making this judgment, the bank evaluates among other factors, the normal volatility in share
price. In addition, impairment may be appropriate when there is evidence of deterioration in the financial health of
the investee, industry and sector performance, changes in technology, and operational and financing cash flows.
d. Held-to-maturity investments
The bank follows the guidance provided in SBP circulars on classifying non-derivative financial assets with fixed or
determinable payments and fixed maturity as held-to-maturity. In making this judgment, the Bank evaluates its
intention and ability to hold such investments to maturity.
e. Income taxes
In making the estimates for income taxes currently payable by the Bank, the management looks at the current
income tax law and the decisions of appellate authorities on certain issues in the past. There are various
matters where bank's view differs with the view taken by the income tax department and such amounts are shown
as contingent liability.
f. Pension / Gratuity
The cost of the defined benefit pension/gratuity plan is determined using actuarial valuation. The actuarial
valuation involves making assumptions about discount rates, expected rates of return on assets, future salary
increases, mortality rates and future pension increases. Due to the long term nature of these plans, such estimates
are subject to significant uncertainty.
5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1 Change in accounting policy
During the year the Institute of Chartered Accountants of Pakistan issued a circular number 06-2006 dated June
19, 2006 which requires that all declarations of dividend to holders of equity instruments including declaration of
bonus issues and other appropriations except appropriations which are required by law after the balance sheet
date should not be recognised as liabilities or appropriations of profit at the balance sheet date. Previously all
declarations of dividends to holder of equity instruments and transfer to reserve relating to profit for the year
although declared subsequent to year end, were accounted for in the year to which those related. This change has
been applied retrospectively and comparatives have been restated. The change in accounting policy has been
reflected in statement of changes in equity.
The change in accounting policy has been accounted for retrospectively and comparative information has been
restated in accordance with the IAS - 8 “Accounting Policies, changes in Accounting Estimate and Error”. Had
there been no change in accounting policy, the unappropriated profit brought forward would have been lower by
Rs. 2,659 million (2005: Rs. 1,723 million) and the liability for proposed dividend and reserve for bonus issue would
have been higher by Rs. 1,477 million (2005: Rs. 738 million) and Rs. 1,182 million (2005: Rs. 985 million)
respectively. The effect of change in accounting policy has been reflected in the comparative balance sheet and
the statement of changes in equity. The change in accounting policy has not resulted in any change in the net profit
for the current year.
5.2 Standard, interpretation and amendment to published approved accounting standards that are
not yet effective
(i) IAS -1, “Presentation of Financial Statements”

- Capital Disclosures effective from January 1, 2007
(ii) IFRIC 11, IFRS 2 “Group Treasury Share Transactions” effective from March 1, 2007
(iii) IFRIC 12, “Service Concession Arrangements” effective from January 1, 2009
Adoption of the above amendment / interpretations may only impact the extent of disclosures presented in the
financial statements.
In addition to above, a new series of standards called "International Financial Reporting Standards (IFRSs)" have
been introduced and seven IFRSs have been issued by International Accounting Standard Board. Out of these
following four IFRSs have been adopted by SECP vide its S.R.O. (l)/2006 dated December 06, 2006.
(i) IFRS-2 "Share-based Payments";

(Ii) IFRS-3 "Business Combinations";
(Iii) IFRS-5 "Non-current Asset Held for Sale and Discontinued Operations"; and
(iv) IFRS-6 "Exploration for and Evaluation of Mineral Resources".
The bank expects that the adoption of the pronouncements mentioned above will have no significant impact on the
bank's financial statements in the period of initial application.
5.3 Cash and cash equivalents
Cash and cash equivalents include cash and balances with treasury banks and balances with other banks in
current and deposit accounts less overdrawn nostro accounts.
5.4 Investments
All investments acquired by the bank are initially recognized at cost, being the fair value of consideration given
including acquisition cost.
The bank has classified its investment portfolio, except for investments in subsidiaries, associates and joint
ventures, into 'held-for-trading', 'held-to-maturity' and 'available-for-sale' portfolios as follows:
- Held-for-trading - These are securities which are acquired with the intention to trade by taking
advantage of short-term market/interest rate movements and are to be sold within 90 days. These are
carried at market value, with the related surplus/(deficit) being taken to profit and loss account.
- Held-to-maturity - These are securities with fixed or determinable payments and fixed maturity that are
held with the intention and ability to hold to maturity. These are carried at amortised cost.
- Available-for-sale - These are investments that do not fall under the held-for-trading or held-to-maturity
categories. These are carried at market value with the surplus/(deficit) taken to 'surplus/(deficit) on
revaluation of assets' account below equity, except that available-for-sale investments in unquoted
shares, debentures, bonds, participation term certificates, term finance certificates, federal, provincial
and foreign government securities (except for Treasury Bills,Federal Investment Bonds and Pakistan
Investment Bonds) are stated at cost less provision for impairment, if any. Provision in respect of
unquoted shares is calculated with reference to break-up value. Provision for unquoted debt securities
is calculated with reference to the time-based criteria as per the SBP's Prudential Regulations.
On derecognition or impairment in quoted available-for-sale investments the cumulative gain or loss previously
reported as “surplus/(deficit) on revaluation of assets” below equity is included in the profit and loss account for the
period.
Held-for-trading and quoted available-for-sale securities are marked to market with reference to ready quotes
on Reuters page (PKRV) or the Stock Exchanges.
Premium or discount on debt securities classified as available-for-sale and held-to-maturity securities is

amortised using the effective interest method and taken to interest income.
Investments in subsidiaries, associated and joint venture companies are stated at cost. Provision is made for a n y
impairment in value.
Gains and losses on disposal of investments are dealt with through the profit and loss account in the year in
which they arise.
The carrying values of investments are reviewed for impairment at each balance sheet date. Where any such
indications exist that the carrying values exceed the estimated recoverable amounts, provision for impairment
is made through the profit and loss account.
5.5 Repurchase and resale agreements
Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be
recognised in the balance sheet and are measured in accordance with accounting policies for Investment
securities. The counter party liability for amounts received under these agreements is included in borrowings from
financial institutions. The difference between sale and repurchase price is treated as markup/return/interest
expense and accrued over the life of the repo agreement using effective yield method.
Securities purchased with a corresponding commitment to resell at a specified future date (reverse repos) are
not recognised in the balance sheet, as the bank does not obtain control over the securities. Amounts paid
under these agreements are included in lendings to financial institutions. The difference between purchase a n d
resale price is treated as mark-up/return/interest income and accrued over the life of the reverse repo agreement
using effective yield method.
5.6 Derivative financial instruments
Derivative financial instruments include forward foreign exchange contracts, equity futures and interest rate
swaps. These are initially recognized at fair value and subsequently remeasured at fair value. Fair value is
calculated by reference to quoted market price. In the event of non-availability of market prices, discounted cash
flow model is used to determine the fair value. Any change in the fair value of derivative instruments is taken to the
profit and loss account.
5.7 Trade date accounting
All regular way purchases/sales of investment are recognised on the trade date, i.e., the date the bank commits to
purchase/sell the investments. Regular way purchases or sales of investment require delivery of securities within
three days after the transaction date as required by stock exchange regulations.
5.8 Financial instruments
All the financial assets and financial liabilities are recognized at the time when the bank becomes a party to the
contractual provisions of the instrument. Any gain or loss on derecognition of the financial assets and financial
liabilities is taken to income currently.
5.9 Advances
Advances are stated net of provisions for non-performing advances. Provision is made in accordance with the
requirements of Prudential Regulations issued by SBP and charged to the profit and loss account. Provision in
respect of overseas branches are made in accordance with the respective central bank's requirements. Advances
are written off where there are no realistic prospects of recovery.
In respect of advances of former Mehran Bank Limited (MBL) amalgamated with the bank, the provision is
calculated in line with the guiding principles of the amalgamation deed (the Deed), whereby the bank shall not
suffer any loss as a direct consequence of amalgamation. Considering the guideline of the Deed, the funded
credits are provided on the basis of security shortfall and the provision is made against unfunded credits to the
extent of subsequent cash payments made against them on the basis of shortfall in the value of security.
5.10 Operating fixed assets and depreciation
Property and equipment
Owned assets
Fixed assets except land and buildings are stated at cost less accumulated depreciation and impairment losses, if
any. Land is stated at revalued amount. Buildings are stated at revalued amount less accumulated depreciation.
Depreciation is charged to income applying the diminishing balance method except vehicles, computers and
furnishing limit to executives, which are depreciated on straight-line method at the rates stated in note 11.2. From
2005 the bank had changed its accounting estimate for charging depreciation. Depreciation is now charged from
the month in which the assets are brought into use and no depreciation is charged from the month the assets are
deleted.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the bank and the cost of
the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Gains and losses on disposal of fixed assets are included in income currently.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Land and buildings' valuation are carried out by professionally qualified valuers with sufficient regularity to
ensure that their carrying amount does not differ materially from their fair value.
Surplus on revaluation of fixed assets to the extent of incremental depreciation charged to the related assets is
transferred to retained earnings (net of deferred tax).
Leased assets
Assets subject to finance lease are accounted for by recording the assets and the related liability. These are
recorded at lower of fair value and the present value of minimum lease payments at the inception of lease and
subsequently stated net of accumulated depreciation. Depreciation is charged on the basis similar to the owned
assets. Financial charges are allocated over the period of lease term so as to provide a constant periodic rate of
financial charge on the outstanding liability.
Intangible assets
Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Amortization is
charged to income applying the straight-line method at the rates stated in note 11.4.
Capital work in progress
Capital work in progress is stated at cost. These are transferred to specific assets as and when assets are
available for use.
Impairment
The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances indicate
that the carrying values may not be recoverable. If any such indication exists and where the carrying values
exceed the estimated recoverable amounts, the fixed assets are written down to their recoverable amounts.
5.11 Taxation
Current
Provision of current taxation is based on taxable income for the year determined in accordance with the prevailing
laws of taxation on income earned for local as well as foreign operation, as applicable to the respective
jurisdictions. The charge for the current tax in consolidated financial statements using prevailing tax rates or tax
rate expected to apply to the profits for the year at enacted rate or minimum tax at the rate of 0.5% of turnover
whichever is higher. The charge for the current tax also includes adjustments wherever considered necessary
relating to the prior year, arising from assessments framed during the year.
Deferred
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are not recognised in respect of taxable temporary differences associated with
interests in joint ventures and branches, where the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and any unused tax losses, to the extent that it is probable that taxable profits will be available against
which the deductible temporary differences, carry-forward of unused tax assets and unused tax losses can be
utilised.
The carrying amount of deferred income tax assets are reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Income tax relating to the items recognized directly in equity are recognized in equity and not in the profit and loss
account.
5.12 Staff retirement benefit - Defined benefits plan
Pension scheme
'The bank operates defined benefit approved funded pension scheme for its eligible employees. The bank's costs
are determined based on actuarial valuation carried out using Projected Unit Credit Method. Net cumulative un-
recognized actuarial gains/losses relating to previous reporting period in excess of the higher of 10% of present
value of defined benefit obligation or 10% of the fair value of plan assets are recognized as income or expense over
the estimated working lives of the employees. Where the fair value of plan assets exceeds the present value of
defined benefit obligation together with unrecognized actuarial gains or losses and unrecognized past service
cost, the bank reduces the resulting asset to an amount equal to the total of present value of any economic benefit
in the form of reduction in future contributions to the plan and unrecognized actuarial losses and past service costs.
Employees' compensated absences
The bank accounts for all accumulating compensated absences when employees render service that increases
their entitlement to future compensated absences. The liability is determined based on actuarial valuation carried
out using the Projected Unit Credit Method.
Post retirement medical benefits
The bank operates an un-funded defined benefit-post retirement medical benefits scheme for all of its employees.
Provision is made in the financial statements for the benefit based on actuarial valuation carried out using the
Projected Unit Credit Method. Actuarial gains/losses are accounted for in a manner similar to the pension scheme.
Benevolent scheme
The bank also operates an un-funded defined benefit benevolent scheme for its eligible employees. Provision is
made in the financial statements based on the actuarial valuation using the Projected Unit Credit Method. Actuarial
gains/losses are recognized in the period in which they arise.
Gratuity scheme
The bank also operates an un-funded defined benefit gratuity scheme for its eligible contractual employees.
Provision is made in the financial statements based on the actuarial valuation using the Projected Unit Credit
Method. Actuarial gains/losses are accounted for in a manner similar to pension scheme.
5.13 Revenue recognition
Mark-up/return/interest on advances and return on investments are recognized on time proportion basis except in
case of advances and investments classified under the Prudential Regulations on which mark-up is recognized on
receipt basis.
Interest/mark-up on rescheduled/restructured advances and investments is recognized in accordance with the

Prudential Regulations of SBP.
Fee, commission and brokerage income and remuneration for trustee services are recognized at the time of
performance of services.
Dividend income on equity investments is recognized when right to receive is established. Dividend received on
equity investments acquired after the announcement of dividend till the book closure date are not taken to income
but reflected as reduction in the cost of investment.
5.14 Foreign currencies translation
Foreign currency transactions are converted into Rupees applying the exchange rate at the date of the respective
transactions. Monetary assets and liabilities in foreign currencies including assets/liabilities of foreign branches
are translated into Rupees at the rates of exchange prevailing at the balance sheet date. Forward exchange
contracts are valued at rates applicable to their respective maturities.
'Profit and loss account balances of foreign branches are translated at average exchange rate prevailing during
the year. Gains and losses on translation are included in the profit and loss account except net gain arising on
translation of net investment in foreign branches, which is credited to an exchange equalization reserve reflected
under reserves.
Items included in the financial statements of the bank's foreign branches are measured using the currency of the
primary economic environment in which the bank operates (the functional currency). The bank's financial
statements are presented in Pak Rupees (Rs.) which is the bank's functional and presentation currency.
5.15 Provision for off balance sheet obligations
Provision for guarantees, claims and other off balance sheet obligations is made when the bank has legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle
the obligation and a reliable estimate of amount can be made. Charge to profit and loss account is stated net of
expected recoveries.
5.16 Off setting
Financial assets and financial liabilities are only set off and the net amount is reported in the financial statements
when there is a legally enforceable right to set off and the bank intends either to settle on a net basis, or to realize
the assets and to settle the liabilities simultaneously.
5.17 Fiduciary assets
Assets held in a fiduciary capacity are not treated as assets of the bank in the balance sheet.
2006 2005
6. CASH AND BALANCES WITH TREASURY BANKS Note Rupees in ‘000
In hand
Local currency 4,997,687 5,001,742
Foreign currency 1,316,993 1,399,704
6,314,680 6,401,446
With State Bank of Pakistan in
Local currency current account 6.1 34,314,011 23,811,220
Local currency deposit account 29 29
34,314,040 23,811,249
Foreign currency current account 6.2 1,192,907 1,358,494

Foreign currency deposit account 6.2 3,578,722 4,075,481
Foreign currency collection account 193,307 1,432,952
Foreign currency placement account 6.3 30,442,750 29,898,000
35,407,686 36,764,927
With other central banks in
Foreign currency current accounts 6.4 1,438,942 3,359,859
Foreign currency deposit accounts 6.5 1,149,879 859,475
2,588,821 4,219,334
78,625,227 71,196,956
6.1 This includes statutory liquidity reserves maintained with the SBP under Section 22 of the Banking Companies
Ordinance, 1962.
6.2 These represent mandatory reserves maintained in respect of foreign currency deposits under FE-25 scheme, as
prescribed by the State Bank of Pakistan.
6.3 This represents US Dollar placements and carry interest at the rate of 6.71% to 7.46% per annum (2005: 5.31% to
6.53%) with maturity within six months.
6.4 These balances pertain to the foreign branches and are held with central banks of respective countries. These
include balances to meet the statutory and central bank regulatory requirements.
6.5 These balances pertain to the foreign branches and are held with central banks of respective countries. These
include balances to meet the statutory and central bank regulatory requirements. These carry mark-up at the rate
of 4.5% to 5.05% per annum (2005: 3.63%).
7. BALANCES WITH OTHER BANKS 2006 2005

Note Rupees in ‘000
In Pakistan
On deposit account 100,600 1,600
Outside Pakistan
On current accounts 979,068 2,950,407
On deposit acccounts 7.1 39,562,011 28,067,323
40,541,079 31,017,730
40,641,679 31,019,330
7.1 These include various deposits with correspondent banks and carry mark-up rates ranging from 0.015% to 8% per
annum (2005: 0.005% to 7% per annum).
8. LENDINGS TO FINANCIAL INSTITUTIONS

Call money lendings 8.2 8,014,000 6,204,000
Repurchase agreement lendings (Reverse Repo) 8.3 & 8.4 14,998,732 10,078,942
8.1 23,012,732 16,282,942
8.1 Particulars of lendings
In local currency 23,012,732 16,282,942

In foreign currencies - -
23,012,732 16,282,942
8.2 These carry mark-up at rates ranging from 10.05% to 11.25% per annum (2005: 7.75% to 9.75% per annum).
8.3.1 Securities held as collateral against lendings to financial institutions

2006 2005
Further Further
Held by given as Held by given as
bank collateral Total bank collateral Total
Rupees in ‘000 Rupees in ‘000
Market Treasury Bills 11,363,732 - 11,363,732 6,753,942 - 6,753,942
Pakistan Investment Bonds 3,635,000 - 3,635,000 3,325,000 - 3,325,000
14,998,732 - 14,998,732 10,078,942 - 10,078,942
8.4 Market value of the securities under repurchase agreement lendings amount to Rs.14,868 million (2005:
Rs.10,276 million).
9. INVESTMENTS
2006 2005
Further Further
Held by given as Held by given as
Note bank collateral Total bank collateral Total
9.1 Investments by Type:
Held-for-trading securities
Ordinary shares of listed companies 332,573 - 332,573 183,575 - 183,575
Available- for- sale securities
Ordinary shares of listed companies 1,426,566 - 1,426,566 1,232,605 - 1,232,605
Ordinary shares of unlisted companies 331,641 - 331,641 433,864 - 433,864
1,758,207 - 1,758,207 1,666,469 - 1,666,469
Market Treasury Bills 50,524,649 381,964 50,906,613 54,238,995 2,845,789 57,084,784
Preference shares 368,184 - 368,184 433,500 - 433,500
Federal Investment Bonds 940,000 - 940,000 1,142,465 - 1,142,465
Term Finance Certificates 7,959,446 - 7,959,446 6,547,321 - 6,547,321
Investments in mutual funds 1,027,881 - 1,027,881 593,611 - 593,611
Investment outside Pakistan 463,295 - 463,295 463,295 - 463,295
National Investment Trust Units 5,667,018 - 5,667,018 5,060,656 - 5,060,656
Total Available- for- sale securities 71,691,653 381,964 72,073,617 77,849,527 2,845,789 80,695,316
Held-to-maturity securities
Government Compensation Bonds 2,331,182 - 2,331,182 2,477,200 - 2,477,200
Provincial Government Securities 36,513 - 36,513 36,513 - 36,513
GoP Foreign Currency Bonds 10,445,224 - 10,445,224 9,457,014 - 9,457,014
Foreign Government Securities 5,618,324 - 5,618,324 5,981,940 - 5,981,940
Debentures, Bonds, Participation Term
Certificates and Term Finance Certificates 9.7 4,595,982 - 4,595,982 6,000,021 - 6,000,021
Certificates of investment 9.16 3,172,000 - 3,172,000 - - -
Total held-to-maturity securities 9.3 38,042,504 - 38,042,504 35,950,435 - 35,950,435
Investments in associates 9.9 979,864 - 979,864 1,014,869 - 1,014,869
Investments in joint ventures 9.10 1,312,335 - 1,312,335 1,274,835 - 1,274,835
Investments in subsidiaries 9.11 1,352,458 - 1,352,458 1,352,458 - 1,352,458
Total Investments at cost 113,711,387 381,964 114,093,351 117,625,699 2,845,789 120,471,488
Less: Provision for diminution in
value of Investments 9.12.1 (1,253,429) - (1,253,429) (1,965,003) - (1,965,003)
Investments (net of provisions) 112,457,958 381,964 112,839,922 115,660,696 2,845,789 118,506,485
Deficit on revaluation of
Held-for-trading securities 9.14 (4,464) - (4,464) (1,979) - (1,979)
Surplus on revaluation of
Available-for-sale securities 20.2 27,111,716 (179) 27,111,537 38,480,872 - 38,480,872
Total investments at market value 139,565,210 381,785 139,946,995 154,139,589 2,845,789 156,985,378
2006 2005
9.2 Investments by segment Note Rupees in ‘000
Federal Government Securities

Market Treasury Bills 50,906,613 57,084,784
Pakistan Investment Bonds 9.4 14,826,252 19,700,962
Federal Investment Bonds 9.5 940,000 1,142,465
- Government Compensation Bonds 9.15 2,331,182 2,477,200

- GoP Foreign Currency Bonds 10,445,224 9,457,014
12,776,406 11,934,214
79,449,271 89,862,425
Provincial Government Securities 36,513 36,513

Foreign Government Securities 5,618,324 5,981,940
Fully Paid up Ordinary Shares

- Listed Companies 9.15 1,759,139 1,416,180
- Unlisted Companies 9.15 331,641 433,864
2,090,780 1,850,044
Investments in mutual funds
9.15 1,027,881 593,611
National Investment Trust Units 9.6 5,667,018 5,060,656
Preference Shares 9.15 368,184 433,500
Certificates of Investment 9.16 3,172,000 -

Certificate and Term Finance Certificates
- Listed 9.15 953,729 551,615
- Unlisted 9.7 & 9.15 11,601,699 11,995,727
12,555,428 12,547,342
Investments outside Pakistan
9.8 463,295 463,295
Investments in Associates 9.9 979,864 1,014,869
Investments in Joint Ventures 9.10 1,312,335 1,274,835
Investments in Subsidiaries 9.11 1,352,458 1,352,458
Total Investments at cost 114,093,351 120,471,488
Less: Provision for diminution in value of investments 9.12.1 (1,253,429) (1,965,003)
Investments (Net of Provisions) 112,839,922 118,506,485
Deficit on revaluation of Held-for-trading securities 9.14 (4,464) (1,979)

Surplus on revaluation of Available-for-sale securities 20.2 27,111,537 38,480,872
Total investments at market value 139,946,995 156,985,378

9.3 Market value of held-to-maturity investments is Rs.36,032 million (2005: Rs.33,358 million).
9.4 These include Pakistan Investment Bonds amounting to Rs.75 million (2005: Rs.75 million) against demand
loans and TT/DD discounting facilities.
9.5 These include Federal Investment Bonds amounting to Rs.940 million (2005: Rs.940 million) provided to
payoff liabilities relating to former Mehran Bank Limited.
9.6 NIT Units
Includes 365,284,216 NIT units in respect of which Government of Pakistan (GoP) issued a letter of comfort (LoC)
dated June 20, 2006 stating that on bank's willingness to continue holding the units upto June 30, 2007 from the
date of LoC, NIT will be facilitated to redeem the units at Rs.13.70 per unit. During 2005 on the directives of MoF,
the bank acquired 5,542,620 units from small sized LoC holders for a sum of Rs.205.077 million. In accordance
with SBP's concurrence vide their letter no. BSD/SU-15/503/1504/2005 dated March 16, 2005 these units have
been valued at market value (repurchase price) aggregating to Rs.16,632 million (2005: Rs.18,684 million). Also,
during 2005, the Privatisation Commission of the GoP offered all the NIT LoC holders, including the bank, the
following two options under the scheme of Privatisation of the Trust:
(a) right to manage the fund represented by the respective LoC holder's portion of the assets / shares and pay for
the management rights as per the terms contained in the "Scheme" (scheme for the split-sell and settlement of
NIT under GoP's privatisation campaign); or
(b) the LoC holder's holding of NIT Units would continue to be managed by NIT as part of a separate split fund.
The bank has conveyed its concurrence to option (a).
9.6.1 Rating of NIT mutual fund is 4 Star by PACRA.
9.7 Term Finance Certificates, Debentures, Bonds and Participation Term Certificates include Rs.705 million
(2005: Rs.741 million) which are considered non-performing.
9.8 Bank Al-Jazira
The bank holds 6,562,500 (2005: 875,000) shares in Bank Al-Jazira incorporated in the Kingdom of Saudi Arabia,
being 5.83% (2005: 5.83%) holding in total equity. From 2005, in accordance with SBP's concurrence vide their
letter no. BSD/SU-13/331/685/2006 dated February 17, 2006, the investment has been marked to market with
closing price as quoted on the Saudi Stock Exchange aggregating Rs. 13,957 million (2005: Rs.22,111 million)
(Rating: BBB+ by Fitch rating).
Number of Percentage 2006 2005

shares holding Note Rupees in ‘000
9.9 Investment in associates
Un-quoted
Pakistan Emerging Venture Limited 12,500,000 33.33 64,415 64,415
First Credit and Investment Bank Limited 5,979,085 50.00 157,429 157,429
Information System Associates Limited 2,300,000 28.07 1,719 1,719
National Fructose Company Limited 1,300,000 39.50 6,500 6,500
Pakistan Insulation Limited 494,500 24.79 695 695
Ali Textile (Jhang) Limited 719,500 25.21 7,195 9,265
Venture Capital Fund Management 33,333 33.33 - -
Ashraf Sugar Mills Limited 2,059,271 20.44 - -
Kamal Enterprises Limited 11,000 20.37 - -
Mehran Industries Limited 37,500 32.05 - -
Qurell Cassettes Limited 46,250 30.83 - -
Tharparkar Sugar Mills Limited 2,500,000 21.50 - -
Youth Investment Promotion Society 644,508 25.00 - -
Khushhali Bank 400 23.45 400,000 400,000
Dadabhoy Energy Supply Company Limited 9,900,000 33.00 32,105 32,105
K-Agricole Limited 5,000 20.00 - -
New Pak Limited 200,000 20.00 - -
Prudential Fund Management 150,000 20.00 - -
670,058 672,128
Quoted
National Fibres Limited 17,119,476 20.19 - -

Asian Leasing Company Limited 2,863,600 27.39 - 3,866
Taha Spinning Mills Limited 833,800 20.59 2,501 2,501
Kohat Textile Mills Limited 2,906,900 33.03 9.9.3 - 29,069
Land Mark Spining Mills Limited 3,970,960 32.75 39,710 39,710
S.G. Fibres Limited 3,754,900 25.03 218,535 218,535
Nina Industries Limited 4,906,000 20.27 49,060 49,060
309,806 342,741
979,864 1,014,869
Less: Provision for diminution in value of investments 9.12.1 (422,435) (457,440)
557,429 557,429
9.9.1 Market value of quoted associates amount to Rs.245.702 million (2005: Rs.297.012 million).
9.9.2 Associates with zero carrying amount, represent the investments acquired from former NDFC which have
negative equity or whose operations are closed at the time of amalgamation.
9.9.3 During 2006, Kohat Textile Mills issued right shares which the bank did not subscribe. As a result the bank's holding
reduced from 33.03% to 13.98%. Accordingly investment has been classified in ordinary shares of listed
companies.
9.9.4 The details of break-up value based on latest available financial statements of un-quoted investment in associates
are as follows:
Year Ended Break-up value
of bank’s share
Rupees in ‘000
Pakistan Emerging Venture Limited June 30, 2006 15,421
First Credit and Investment Bank Limited December 31, 2006 258,247
Information System Associates Limited June 30, 2006 3,788
Pakistan Insulation Limited June 30, 2001 2,630
Ali Textile (Jhang) Limited September 30, 2001 10,049
Ashraf Sugar Mills Limited September 30, 2004 (17,199)
Mehran Industries Limited June 30, 2001 5,681
Tharparkar Sugar Mills Limited September 30, 2001 (83,140)
Khushhali Bank December 31, 2005 410,372
Dadabhoy Energy Supply Company Limited June 30, 2006 79,318
2006 2005
9.10 Investment in Joint Ventures
United National Bank Limited 9.10.1 1,244,835 1,244,835
National Fullerton Asset Management (NAFA) 9.10.2 67,500 30,000
1,312,335 1,274,835
9.10.1 Under a joint venture agreement, the bank holds 13.5 million ordinary shares (45%) and United Bank Limited
(UBL) holds 16.5 million ordinary shares (55%) in the venture. In addition to ordinary shares, four preference
shares categories as "A", "B", "C" and "D" have been issued and allotted. The "B" and "D" category shares are
held by the bank and category "A" and "C" are held by UBL. Dividends payable on "A" and "B" shares are related to
the ability of the venture to utilize tax losses that have been surrendered to it on transfer of business from the bank
or UBL as appropriate. Dividends payable on "C" and "D" shares are related to loans transferred to the venture by
the bank or UBL that have been written-off or provided for at the point of transfer and the ability of the venture to
realize in excess of such loan value. Upto December 31, 2006 the bank's share of undistributed profits amounts to
Rs.293.043 million (2005: Rs.142.349 million).
9.10.2 The company has been set up for the purpose of providing asset management services and investment advisory
services with a paid-up capital of Rs.250 million (2005: Rs.100 million) as a joint venture between the bank, NDLC-
IFIC Bank Limited and Alexandra Fund Management PTE Limited. The bank has 27% (2005: 30%) holding as at
December 31, 2006.
9.11 Investments in subsidiaries

Percentage 2006 2005
holding Rupees in ‘000
NBP Capital Limited 100.00 500,000 500,000
CJSC Subsidiary Bank of NBP in Kazakhistan 100.00 419,488 419,488
NBP Exchange Company Limited 100.00 300,000 300,000
NBP Modaraba Management Company Limited 100.00 105,000 105,000
Taurus Securities Limited 58.32 24,725 24,725
National Agriculture & Storage Company Limited 100.00 2,000 2,000
Cast-N-Link Products Limited 76.51 1,245 1,245
1,352,458 1,352,458
(3,245) (3,245)
Less: Provision for diminution in value of investments 1,349,213 1,349,213
9.12 Particulars of provision for diminution in value of investment
2006 2005
Opening balance 1,965,003 2,249,295
Charge for the year - -

Reversals (709,461) (245,881)
(709,461) (245,881)
Amount written off (2,113) (38,411)

Closing balance 1,253,429 1,965,003
9.12.1 Particulars of provision in respect of type and segment

Available-for-sale securities
Ordinary shares of unlisted companies 123,036 179,853
Certificates and Term Finance Certificates 704,713 1,324,465
Associates 9.9 422,435 457,440

Subsidiaries 9.11 3,245 3,245
1,253,429 1,965,003
9.13 Quality of available-for-sale securities
Information relating to quality of available-for-sale securities is given in Annexure "I" and is an

integral part of these financial statements.
9.14 Unrealized loss on revaluation

of investments classified as held-for-trading
Ordinary shares of listed companies (4,464) (1,979)
9.15 Information relating to investments in shares of listed and unlisted companies, redeemable capital
and bonds is given in Annexure "I" and is an integral part of these financial statements.
9.16 These carry mark-up at the rate from 11.25% to 14.33% (2005: Nil) per annum.
2006 2005
10. ADVANCES
Loans, cash credits, running finances, etc.
In Pakistan 304,569,560 262,467,150

Outside Pakistan 26,376,167 22,071,338
330,945,727 284,538,488
Bills discounted and purchased (excluding Government treasury bills)
Payable in Pakistan 2,502,819 2,387,740

Payable outside Pakistan 14,881,699 12,471,568
17,384,518 14,859,308
Margin Financing 10.8 40,213 25,015
Advances - gross 10.1 348,370,458 299,422,811

Less: Provision against non-performing advances 10.3 (32,260,052) (30,584,032)
Advances - net of provision 316,110,406 268,838,779
10.1 Particulars of advances - gross
10.1.1 In local currency 304,788,413 264,648,686

In foreign currencies 43,582,045 34,774,125
348,370,458 299,422,811
10.1.2 Short-term (for upto one year) 233,817,770 187,616,718

Long-term (for over one year) 114,552,688 111,806,093
348,370,458 299,422,811
10.2 Advances include Rs. 36,260 million (2005: Rs. 33,738 million) which have ben placed under non-performing
status as detailed below:-
2006
Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
Rupees in ‘000
Category of Classification
Other Assets Especially Mentioned 396,998 - 396,998 - - - - - -
Substandard 2,602,626 - 2,602,626 597,408 - 597,408 597,408 - 597,408
Doubtful 1,877,859 - 1,877,859 828,886 - 828,886 828,886 - 828,886
Loss 30,820,501 561,902 31,382,403 28,042,748 59,630 28,102,378 28,042,748 59,630 28,102,378
35,697,984 561,902 36,259,886 29,469,042 59,630 29,528,672 29,469,042 59,630 29,528,672
10.3 Particulars of Provision against non-performing advances
2006 2005
Specific General Total Specific General Total
Opening balance 28,388,730 2,195,302 30,584,032 28,372,354 678,424 29,050,778
Exchange adjustments 2,851 19,282 22,133 (140) (18,181) (18,321)
Charge for the year 5,225,418 622,648 5,848,066 3,115,568 1,535,059 4,650,627
Reversal during the year (2,772,343) - (2,772,343) (2,203,888) - (2,203,888)
2,453,075 622,648 3,075,723 911,680 1,535,059 2,446,739
Amounts written off 10.5 (705,125) - (705,125) (895,164) - (895,164)
Other movements (610,859) (105,852) (716,711) - - -
Closing balance 29,528,672 2,731,380 32,260,052 28,388,730 2,195,302 30,584,032
10.4 Particulars of provisions against non-performing advances
2006 2005
Rupees in ‘000
In local currency 29,469,042 2,493,782 31,962,824 28,237,053 1,906,925 30,143,978
in foreign currencies 59,630 237,598 297,228 151,677 288,377 440,054
29,528,672 2,731,380 32,260,052 28,388,730 2,195,302 30,584,032
10.5 Particulars of write offs: 2006 2005

10.5.1. Against Provisions 10.3 705,125 895,164

Directly charged to Profit & Loss account 5,284 23,069
710,409 918,233
10.5.2 Write Offs of Rs. 500,000 and above 10.6 687,167 896,526
Write Offs of below Rs. 500,000 23,242 21,707
710,409 918,233
10.6 Details of loan write off of Rs. 500,000/- and above
In terms of sub-section 3 of section 33A of the Banking Companies Ordinance, 1962 the statement in respect of
written-off loans or any other financial relief of Rs.500,000 or above allowed to a person(s) during the year ended
December 31, 2006 is given in Annexure-II.
10.7 Particulars of loans and advances to directors, associated companies, etc. 2006 2005
Rupees in ‘000
Debts due by directors, executives, officers & staff of the bank or
any of them either severally or jointly with any other person
Balance at beginning of year 11,340,452 9,766,179

Loans granted during the year 2,401,776 2,111,025
Repayments (426,118) (536,752)
Balance at end of year 13,316,110 11,340,452
Debts due by companies or firms in which the directors

of the bank are interested as directors, partners or in the
case of private companies as members
Balance at beginning of year

Repayments 154,228 730,355
Balance at end of year (408,687) (462,873)
2,319,290 2,573,749
Debts due by subsidiary companies, controlled firms,
managed modarabas and other related parties
Balance at beginning of year

Repayments 146,983 47,177
Balance at end of year (121,119) (60,018)
2,319,290 2,293,426
10.8 These are secured against shares of listed companies, market value of which amounted to Rs.67.36 million (2005:
Rs.43.21 million) at the balance sheet date. These carry mark-up at the rate of 3 months KIBOR + 4% and 6
months KIBOR +3% (2005: 3 months KIBOR + 4%)
2006 2005
11. OPERATING FIXED ASSETS
Capital work-in-progress 11.1 378,617 318,751

Property and equipment 11.2 9,294,200 9,131,527
Intangible assets 11.4 9,157 4,087
9,681,974 9,454,365
11.1 Capital work-in-progress
Civil works 326,066 301,378
Equipment 4,419 -
Advances to suppliers and contractors 48,132 17,373
378,617 318,751
11.2 Property and equipment
Cost/revalued amount Accumulated depreciation
Book
At Revaluation At At Charge for At Value at
January Surplus/ Additions/ December January the year/ December December Rate of
1, 2006 (deficit) (deletions) 31, 2006 1, 2006 (deletions) 31, 2006 31. 2006 Depreciation
Rupees in ‘000
Owned
Land
- freehold 2,781,313 - - 2,781,313 - - - 2,781,313 Nil

-
- leasehold 2,766,782 - 31,404 2,798,186 - - - 2,798,186 Nil
-
Buildings on land:
- freehold 1,746,793 - 26,519 1,773,312 449,538 33,435 482,973 1,290,339 5% on book value
- leasehold 1,241,553 - 70,863 1,312,416 266,505 90,929 357,434 954,982 5% on book value
Furniture and fixtures 1,125,472 - 94,741 1,217,551 758,165 48,037 804,635 412,916 10% to 30%on book
(2,662) (1,567) value and 20% on
straight-line on new
furnishing limit to
executives
Computer &peripheral
equipments 1,047,260 - 220,264 1,267,416 811,600 127,053 938,599 328,817 33.33% on cost
(108) (54)
Electrical & office
equipments 1,308,327 - 138,718 1,442,105 854,721 117,954 968,661 473,444 20% on book value
(4,940) (4,014)
Vehicles 442,437 - 65,946 488,836 207,291 62,997 253,658 235,178 20% on cost
(19,547) (16,630)
12,459,937 - 648,455* 13,081,135 3,347,820 480,405 3,805,960 9,275,175

(27,257) (22,265)
Assets held under

finance lease
Vehicles 20,350 - 4,020 24,370 940 4,405 5,345 19,025 20% on cost
2006 12,480,287 - 652,475 13,105,505 3,348,760 484,810 3,811,305 9,294,200
(27,257) (22,265)
* This includes fixed assets amounting to Rs. 5.615 million (2005: Nil) acquired from Corporate and Industrial Restructuring Corporation,
consequent upon its dissolution with effect from September 22, 2006.

Book
Rupees in ‘000
Owned
Land
- freehold 2,781,313 - - 2,781,313 - - - 2,781,313 Nil
- leasehold 2,766,782 - - 2,766,782 - - - 2,766,782 Nil
Buildings on land:
Furniture and fixtures 1,027,001 - 103,406 1,125,472 715,629 45,080 758,165 367,307 10% to 30%on book
(4,935) (2,544) value and 20% on
furnishing limit to
executives
equipments 890,003 - 157,529 1,047,260 580,936 230,932 811,600 235,660 33.33% on cost
(272) (268)
Electrical & office
(2,301) (1,895)
Vehicles 218,223 - 144,769 442,437 114,282 59,755 207,291 235,146 20% on cost
(24,687) (23,364)
104,132 56,618
11,689,615 - 698,385 12,459,937 2,754,815 564,458 3,347,820 9,112,117

(32,195) (28,071)
104,132 56,618
Under finance lease
20,350 20,350 62,584 940 940 19,410
Vehicles 111,913 - (7,781) (5,966) 20% on cost
(104,132) (56,618)
2005 11,801,528 - 718,735 12,480,287 2,817,399 565,398 3,348,760 9,131,527
(39,976) (34,037)
- -
11.3 In the year 2004, certain of the bank's properties were revalued by M/s Younus Mirza & Co. on the basis of market
value which resulted in net surplus of Rs.25.802 million over the book value of the assets.
In the year 2003, certain bank's properties were revalued by M/s Younus Mirza & Co. and M/s Iqbal A. Nanji & Co.
on the basis of market value which resulted in net surplus of Rs.547 million over the book value of the assets.
In the year 2002, the bank's properties were revalued by M/s Younus Mirza & Co. on the basis of market value
which resulted in net surplus of Rs.1,199.625 million over the book value of the assets.
11.4 Intangible asset

Cost/revalued amount Accumulated Amortization
Book
January 1, Surplus/ Additions/ December 31, January 1, the year/ December 31, December 31, Rate of
2006 (deficit) (deletions) 2006 2006 (deletions) 2006 2006 amortization
Rupees in ‘000
Computer software 6,127 - 6,894 13,021 2,040 1,824 3,864 9,157 33.33%
2006 6,127 - 6,894 13,021 2,040 1,824 3,864 9,157 on cost
2005 - - 6,127 6,127 - 2,040 2,040 4,087
11.5 Had the revaluation not been carried out, the net book value of the revalued assets at December 31, 2006 would
have been as follows:
Land Building on land Total
Freehold Leasehold Freehold Leasehold
Rupees in ‘000
284,179 369,986 109,917 107,715 871,797
11.6 Carrying amount of temporarily idle property and equipment as at December 31, 2006 is Rs. Nil
(2005: Rs.400 million).
11.7 DETAILS OF DISPOSALS OF FIXED ASSETS
Details of assets whose original cost or the book value exceeds rupees one million or two hundred fifty thousand
rupees, whichever is lower are given below:
Particulars of Original Book Sale Profit/ Mode of Particulars of
assets cost value proceed (loss) Disposal Purchaser
Rupees in ‘000
Motor Vehicle 939 751 751 - As per service Mr. Hanif Bux
rules on - EVP
retirement
Motor Vehicle 849 509 509 - As per service Mr. Raheemuddin

rules on - SVP
retirement
Motor Vehicle 849 396 396 - As per service Mr. S. Javed Ali
rules on Nosha
retirement - SVP
Motor Vehicle 849 679 679 - As per service Mr. Yousuf

rules on Hussain Jafferi
retirement - SVP
Motor Vehicle 849 580 580 - As per service Mr. Abid

rules Mahmood
on retirement - SVP
Office equipment 2,069 353 800 447 Tender M/s Merin

(Pvt.) Ltd.
Other assets (having

book value of less than
Rs.250,000 and cost of
less than Rs.1,000,000) 20,853 1,724 9,627 7,903 As per service Various
rules on
retirement/Auction
27,257 4,992 13,342 8,350
2006 2005
12. OTHER ASSETS
Income/mark-up accrued in local currency 7,667,576 6,793,885

Income/mark-up accrued in foreign currencies 1,490,816 1,243,628
Advances, deposits, advance rent and other prepayments 785,294 638,852
Advance taxation (payments less provisions) 21.4.2 8,747,078 9,415,827
Receivable from CIRC 12.1 278,501 278,501
Assets acquired from Corporate and Industrial
Restructuring Corporation (CIRC) 12.2 817,667 -
Branch Adjustment Account 128,687 -
Un-realized gain on forward foreign exchange contracts 126,371 137,520
Commission receivable 1,790,993 1,301,156
Stationery and stamps on hand 220,939 199,148
Barter trade balances 182,503 182,503
Receivable on account of Government transactions 12.3 323,172 323,172
Receivable from Government under VHS scheme 12.4 412,561 408,576
Less: amount charged/provision (412,561) (408,576)
- -
Receivable from pension fund 35.1 2,951,933 2,523,668
Prize bonds on hand 320,023 297,755
Receivable from brokers - 616,218
Others 3,053,752 1,782,098
28,885,305 25,733,931
Less: Provision held against other assets
Income/mark-up accrued in local currency / foreign currencies 296,592 335,592
Stationery and stamps on hand 51,200 51,200
Receivable on account of Government transactions 323,172 323,172
Others 918,140 900,408
12.5 1,771,607 1,792,875
27,113,698 23,941,056
12.1 Upon dissolution of Corporate and Industrial Restructuring Corporation (CIRC) and take over by the bank with
effect from September 22, 2006, the said amount represents receivable from GoP.
12.2 During the year the bank has acquired non-performing assets from Corporate and Industrial Restructuring
Corporation (CIRC), consequent upon its dissolution with effect from September 22, 2006 vide Corporate and
Industrial Restructuring Corporation (Dissolution) Order 2006 dated September 11, 2006. The book value of non-
performing assets after adjustment of down payment of Rs 150 million shall be repayable in three annual
installments of Rs 222.555 million each upto September 2009. Further the bank under fiduciary duty shall collect
the sale proceeds of disposal of units, the sale proceed of which is approved between CIRC and obligors of non-
performing assets, amounting to Rs 471.307 million and transfer them to GoP on expiry of each quarter subject to
adjustments/ reimbursements for reasonable expenses incurred in relation to steps and legal action taken.
12.3 This represents amount receivable from Government of Pakistan on account of encashment of various
instruments handled by the bank for Government of Pakistan as an agent of SBP.
12.4 This represents payments made under the Voluntary Handshake Scheme (VHS), recoverable from Government
of Pakistan. Due to uncertainty about its recoverability, although despite a claim being lodged, full amount has
been provided for.
2006 2005
12.5 Provisions against other assets

Charge for the year 17,732 198,298
Reversals (39,000) -
13. BILLS PAYABLE

In Pakistan 10,549,447 1,714,500
Outside Pakistan 56,216 26,656
10,605,663 1,741,156
14. BORROWINGS
In Pakistan 10,091,407 8,408,521
Outside Pakistan 1,612,672 348,326
14.1 & 14.2 11,704,079 8,756,847
14.1 Particulars of borrowings with respect to currencies

In foreign currencies 1,612,672 348,326
14.2 11,704,079 8,756,847
14.2 Details of borrowings secured / unsecured
Secured
Borrowings from State Bank of Pakistan:

Under export refinance scheme / LTF* 7,580,045 4,034,703
Under Locally Manufactured Machinery (LMM) scheme 1,160 3,408
Finance to payoff liabilities relating to former MBL 14.2.1 564,000 752,000
Others 66,907 66,907
8,212,112 4,857,018
Repurchase agreement borrowings 354,710 2,747,952
8,566,822 7,604,970
Unsecured
Call borrowings 2,612,672 448,326

Overdrawn nostro accounts 453,785 632,751
Others 70,800 70,800
3,137,257 1,151,877
11,704,079 8,756,847
14.2.1 This comprises of balance of loan of Rs.940 million extended in 1999. The loan is interest free and is repayable in
five equal annual installments after an initial grace period of five years.
* Long term financing under export oriented project.

14.2.2 Mark-up/interest rates and other terms are as follows:
- Export refinance loans from SBP are at the rate of 6.5% per annum (2005: 7.5% per annum).
- Locally Manufactured Machinery Loans from SBP are at the rate of 11% per annum (2005: 8% to 9.5%
per annum).
- Secured borrowings "Others" from SBP are interest free.
- Call borrowings carry interest ranging from 7.75% to 10.20% per annum (2005: 1.4% to 8.15% per annum).
- Overdrawn Nostro accounts carry interest at the rate of 1% to 5% per annum (2005: 1% to 5% per annum).
- Repurchase agreement borrowings carry mark-up at the rate of 8.5% per annum (2005: 3% to 8.4%
per annum).
- Unsecured borrowings "Others" carry interest at the rate of 10% per annum (2005: 10% per annum).
2006 2005
15. DEPOSITS AND OTHER ACCOUNTS Note Rupees in ‘000
Customers
Fixed deposits 100,017,399 80,924,830

Savings deposits 170,256,433 165,513,085
Current accounts - remunerative 54,359,662 54,519,134
Current accounts - non-remunerative 119,468,864 102,690,939
444,102,358 403,647,988
Financial Institutions
Remunerative deposits 39,196,100 38,174,088

Non-remunerative deposits 18,573,785 21,604,526
57,769,885 59,778,614
15.1 501,872,243 463,426,602
15.1 Particulars of deposits

In foreign currencies [including deposits of foreign branches
of Rs.86,816 million including vostro balances of Rs.1,069 million
(2005: Rs.81,124 million including vostro balances of Rs. 2,383 million)] 111,266,933 106,393,192
501,872,243 463,426,602
16. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

2006 2005
Minimum Financial Principal Minimum Financial Principal

lease charges for outstanding lease charges for outstanding
Payments future periods Payments future periods
Not later than one year 8,890 1,260 7,630 7,818 1,856 5,962
Later than one year and

not later than five years 6,488 883 5,605 12,131 1,464 10,667
15,378 2,143 13,235 19,949 3,320 16,629
The bank has entered into lease agreements with various leasing companies for lease of vehicles. Lease rentals
are payable in quarterly installments. Financial charges included in lease rentals are determined on the basis of
discount factors applied at the rates ranging from 12% to 16% and KIBOR plus 2% (2005: 12% to 16% and KIBOR
plus 2%). At the end of lease term, the bank has the option to acquire the assets subject to adjustment of security
2006 2005
17. DEFERRED TAX LIABILITIES
Deferred tax (assets) arising in respect of
Provision for diminution in the value of investments (246,650) (463,563)

Provision against advances - general provisions (872,824) (667,424)
Other provision (103,806) (117,456)
Charge against defined benefits plans (281,028) (255,404)
Difference between accounting book value of fixed assets and tax base (12,145) (95,643)
Provision against off-balance sheet obligation (115,222) (115,222)
(1,631,675) (1,714,712)
Deferred tax liabilities arising in respect of
Excess of accounting book value of leased assets over lease liabilities 2,025 972
Revaluation of securities 20.2 3,570,167 5,707,793
Revaluation of fixed assets 20.3 446,556 468,665
4,018,748 6,177,430
Net deferred tax liabilities 2,387,073 4,462,718
18. OTHER LIABILITIES

Mark-up/ return/ interest payable in local currency 3,364,337 2,873,212
Mark-up/ return/ interest payable in foreign currencies 1,063,453 741,762
Unearned commission and income on bills discounted 72,207 52,965
Accrued expenses 1,538,418 964,957
Advance payments 8,496 16,538
Unclaimed dividends 8,259 5,632
Un-realized loss on forward foreign exchange contracts 35,500 -
Un-realized loss on derivative financial instruments 240,525 432,193
Provision against off balance sheet obligations 18.1 425,824 425,824
Branch adjustment account - net - 803,414
Post retirement medical benefits 35.2 2,276,586 2,001,749
Compensated absences 35.3 1,639,708 1,521,326
Liabilities relating to:
Bangladesh (former East Pakistan) 227,089 227,089
Barter trade agreements 8,660,061 8,505,559
Special separation package 78,422 78,422
Benevolent fund 35.4 802,937 729,725
Gratuity scheme 35.5 33,409 -
Staff welfare fund 686,401 748,795
10,488,319 10,289,590
Payable to GoP for NDFC amalgamation - 57,351
Payable to GoP for acquisition of assets from CIRC 12.2 673,282 -
Payable on account of Government transactions 34,246 73,805
Payable to brokers 89,665 72,050
Others [(including provision of Rs.178 million (2005: Rs.178 million)
for contingencies) 4,637,475 3,164,542
26,596,300 23,496,910
2006 2005
18.1 Provision against off balance sheet obligation
Opening balance 425,824 425,824

Closing balance 425,824 425,824
18.1.1 This represents provision against non-funded exposure of borrowers where the bank feels the borrower will not be
able to meet its contractual obligations at the time of amount becoming due.
19 SHARE CAPITAL
19.1 Authorized Capital
2005 2006 2006 2005

Number of shares Note Rupees in ‘000
750,000,000 750,000,000 Ordinary shares of Rs. 10 each 7,500,000 7,500,000

19.2 Issued, subscribed and paid-up
Ordinary shares of Rs.10 each

140,388,000 140,388,000 Fully paid in cash 1,403,880 1,403,880
450,504,746 568,683,295 Issued as fully paid bonus shares 5,686,832 4,505,047
590,892,746 709,071,295 7,090,712 5,908,927
20. SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS
20.1 Surplus on revaluation of fixed assets - net of tax 20.3 5,368,099 5,409,159
20.2 Surplus on revaluation of available-for-sale securities - net of tax
Federal Government securities 80,436 70,904

Term Finance Certificates 56,000 1,589
Quoted shares 1,760,160 2,729,170
NIT Units 11,721,554 14,031,893
Bank Al-Jazira 13,493,387 21,647,316
27,111,537 38,480,872
Deferred tax liability recognized 17 (3,570,167) (5,707,793)
28,909,469 38,182,238
2006 2005
20.3 Movement in surplus on revaluation of fixed assets
Surplus on revaluation on January 1, 5,877,824 5,944,318
Net surplus on revaluation of bank's properties during the year - -
Transferred to unappropriated profit in respect of incremental

depreciation charged during the year -net of deferred tax (41,060) (43,221)
Related deferred tax liability (22,109) (23,273)
(63,169) (66,494)
5,814,655 5,877,824
Less: Related deferred tax liability on:

Revaluation as at January 1, 468,665 491,938
Revaluation of bank's properties during the year - -
Incremental depreciation charged during the year
transferred to profit and loss account (22,109) (23,273)
446,556 468,665
Surplus on revaluation of fixed assets on December 31, 5,368,099 5,409,159
21. CONTINGENCIES AND COMMITMENTS
21.1 Direct credit substitutes
Includes general guarantee of indebtedness, bank acceptance guarantees and standby letters of credit serving as
financial guarantees for loans and securities issued in favour of:
- Government 345,847 2,269,358

- Financial institutions 4,885,235 504,595
- Others 24,807,965 13,012,983
30,039,047 15,786,936
21.2 Transaction-related contingent liabilities
Includes performance bonds, bid bonds, warranties, advance payment guarantees, shipping guarantees and
standby letters of credits related to particular transactions issued in favour of:
- Government 18,138,591 12,488,526
- Financial institutions 30,735 -
- Others 5,484,271 9,971,136
23,653,597 22,459,662
21.3 Trade-related contingent liabilities
Letters of credit
Issued in favor of
- Government 128,295,046 69,418,144
- Financial institutions 522,542 8,121,679
- Others 31,725,396 26,211,138
160,542,984 103,750,961
2006 2005
Rupees in ‘000
21.4 Other Contingencies
21.4.1 Claims against the bank not acknowledged as debts [including SBP
liabilities on Bangladesh borrowing and interest thereon amounting
to Rs.164 million (2005: Rs.158 million) and claims relating to former
MBL amounting to Rs.1,053 million (2005: Rs.1,117 million)]. 11,544,592 13,271,740
21.4.2 Taxation
The income tax assessments of the bank for global operations as well as Azad Kashmir have been finalized upto
and including the tax year 2005 (accounting year ended December 31, 2004). The income tax returns for the tax
year 2006 (accounting year ended December 31, 2005) have been filed for global operations and Azad Kashmir
and the same are deemed to be assessment order under the provisions of section 120 of the Income Tax
Ordinance, 2001, unless amended otherwise. Appeals filed by the bank and tax department for certain
assessment years including tax year 2005 are pending before various appellate forum/court of law. The major
issues involved include taxability of interest credited to suspense account and disallowances of cost incurred in
respect of employees' special separation scheme. While amending the assessment order for the Tax Year 2005,
the Taxation Officer has disallowed/added provision against bad & doubtful debts as certified by SBP, allocation of
expenses relating to exempt income and revaluation loss of barter trade agreements , the tax impact of which
amounting to Rs 941 million.
In the event that the appeals are decided against the bank, a further tax liability of Rs.8,721 million (2005: Rs 7,780
million) may arise in addition to amount already provided.
No provision has been made in these accounts for the above as the management, based on the opinion of tax
lawyers and consultants, considers that provision is not necessary because the bank is subjected to tax exceeding
its normal tax liability and will get relief in the appeals process.
21.4.3 Provident Fund
In 1977, in accordance with the GoP policy, the bank's employees benefits were changed from the Provident Fund
to an enhanced Pension Scheme and an option was given to the employees either to opt for the new scheme or
retain the existing benefits. Almost all employees opted for the new scheme. The bank considered that in
accordance with the policy decision of the Banking Council and Finance Division of GoP, the balance of bank's
contribution lying in the members' account in the Provident Fund upto that date should have been transferred to the
Pension Fund to partially cover the additional cost of the enhanced benefits.
Subsequently, three employees filed a writ petition in 1980 before a Single Bench of Lahore High Court claiming
the balance lying in their Provident Fund Account. This petition was dismissed by the Single Bench in July, 1982.
Against this petition of the Single Bench, the aggrieved employees filed Intra Court Appeal before the High Court
which was heard by a Division Bench of the Lahore High Court on a number of dates, extending over 16 years.
Appeal against the Order of Single Bench was finally dismissed by the Division Bench vide Order dated July 31,
1998. One employee filed an appeal in the Supreme Court against the judgment of the Lahore High Court. In
2003, such appeals were finally decided by the Supreme Court of Pakistan against the bank. The Supreme Court
directed the bank that the employees shall be paid contribution made by the bank together with the interest upto
the date of payment. The bank in accordance with the legal opinion obtained, has commenced settlement of dues
of eligible employees who had joined service of the bank prior to 1977. For the purpose of settlement, interest has
been calculated in accordance with Rule 12 of the Provident Fund Rules at average redemption yield through the
year of Central Government Rupee Loans of twenty years maturity or thereabout and such interest has been
calculated in accordance with Rule 19 i.e. to ex-employees upto the date of retirement or death and to date in case
of serving employees.
During 2004, certain employees have filed a contempt of court application before the Supreme Court, pointing out
the issue of rate of interest and date of payment. The bank filed a reply and submitted before the Honourable Court
that the rate of interest which the petitioners are claiming is not admissible as payment on the said account is
covered by Provident Fund Rules.
On one of the dates of hearing the Court had already observed that the contempt proceedings are not meant to
cover the amount, if according to petitioners the amount falls short of their expectations. Under contempt
proceedings their jurisdiction is only confined to punishing for dies-obedience of the order. The Court also put a
direct question to the council for the petitioners to pinpoint the portion of the Order of Supreme Court which
according to him, was disobeyed. The learned Council was unable to do so. The Court therefore expressed the
view that proceedings of contempt were not competent. However, the matter is still awaiting the decision of
Honorable Supreme Court of Pakistan.
Pending outcome of the said application, the bank has decided not to claim excess fund lying in the Provident Fund
account although the management is confident that the payments being made are in accordance with the
Supreme Court's decision. The additional liability which may arise in case of different interpretation of the Supreme
Court's decision cannot be estimated until such interpretation is made.
2006 2005
Rupees in ‘000
21.5 Commitments in respect of forward Lending
Forward call lending 1,000,000 -
21.6 Commitments in respect of forward exchange contracts

Purchase 33,055,235 36,816,486
Sale 15,352,480 15,623,954
21.7 Commitments in respect of trading of government securities
Sale 22,500 500,000
Purchase 10,000,000 -
21.8 Commitment for the acquisition of operating fixed assets 590,073 56,085
22. DERIVATIVE INSTRUMENTS
22.1 Product Analysis

Interest Rate Swaps Forward rate Agreements FX Options
Counterparties No. of Notional No. of Notional No. of Notional
Contracts Principal Contracts Principal Contracts Principal
With Banks for
Hedging - - - - - -
Market Making 6 4,400,000 - - - -
With FIs other than banks
Hedging - - - - - -
Market Making - - - - - -
With other entities for
Hedging - - - - - -
Market Making 7 4,505,000 - - - -
Total
Hedging - - - - - -
Market Making 13 8,905,000 - - - -
13 8,905,000 - - - -
22.2 Maturity Analysis
Interest Rate Swaps

Remaining No. of Notional Mark to Market
Maturity Contracts Principal Negative Positive Net
Upto 1 month
1 to 3 months
3 to 6 months
6 month to 1 Year
1 to 2 Year 13 8,905,000 249,498 8,973 240,525
2 to 3 Years
3 to 5 Years
5 to 10 years
Above 10 Years
The scope of derivatives activities range from zero cost plain vanilla to more complex structured products such as
barrier options, participatory forwards etc. The bank is involved in derivative transactions for trading as well as
hedging purpose.
The management is committed to managing risk and to controlling business and financial activities in a manner
which enables it to maximize profitable business opportunities, avoid or reduce risks, which can cause loss or
reputation damage, ensure compliance with applicable laws and regulations and resilience to external events.
The bank's business is conducted within a developed control framework, underpinned by written policies and
procedures duly approved by the Board of Directors. The management has developed a structure that clearly
defines roles, responsibilities and reporting lines. Delegated authorities and responsibilities are documented and
communicated.
The Asset Liability Committee regularly reviews the bank's risk profile. The performance of the bank's businesses
is reported regularly to senior line management as well as the Board of Directors. Performance trends, forecasts,
as well as actual performance against budgets and prior periods are closely monitored. Operations procedures
and controls have been established to facilitate complete, accurate and timely processing of transactions and
derivative activities. These controls include appropriate segregation of duties, regular reconciliation of accounts,
and the valuation of assets and positions. The management regularly reviews the effectiveness of the bank's
internal control system. The bank has established trading limits, allocation process, operating controls and
reporting requirements that are specifically designed to control risk of aggregate positions, assure compliance
with accounting and regulatory standards and provide accurate management information regarding these
activities.
Accounting policies in respect of derivative financial instruments are described in note 5.6.
2006 2005
23. MARK-UP/RETURN/INTEREST EARNED Rupees in ‘000
On loans and advances to:

Customers and financial institutions 29,330,443 21,084,453
On Investments in:
Available-for-sale securities 5,402,561 5,728,644
Held-to-maturity securities 3,806,635 3,051,095
9,209,196 8,779,739
On deposits with financial institutions 4,006,289 2,989,061
On securities purchased under resale agreements 1,027,270 780,482
On interest rate SWAP 215,430 58,930
43,788,628 33,692,665
2006 2005
24. MARK-UP/RETURN/INTEREST EXPENSED Note Rupees in ‘000
Deposits 13,072,306 9,806,298

Securities sold under repurchase agreements 306,033 163,951
Short-term borrowings 74,917 20,317
Long-term borrowings 37 1,008
Interest rate SWAP 181,619 330,194
13,634,912 10,321,768
25. INCOME FROM DEALING IN FOREIGN CURRENCIES

Income from dealing in foreign currencies 1,186,343 1,214,992
Revaluation of barter trade balances (152,743) (30,265)
Revaluation of placements 300,240 20,911
1,333,840 1,205,638
26. GAIN / (LOSS) ON SALE OF SECURITIES

Federal government securities
Market Treasury Bills (2,651) 24
Pakistan Investment Bonds (2,307) (34,803)
(4,958) (34,779)
Shares - listed 829,797 1,400,401

- un-listed 26.1 344,676 149
1,174,473 1,400,550
1,169,515 1,365,771
26.1 This includes gain of Rs. 296.443 million (2005: Nil) on disposal of shares of Investment Corporation of Pakistan.
27. OTHER INCOME

Rent on property 24,974 22,531
Profit on sale of property and equipment 11.7 8,350 17,922
Reversal for voluntary handshake scheme - 28,635
Others 27.1 594,294 108,751
627,618 177,839
27.1 Other income includes Rs.498 million (2005: Nil) on account of reversal of exchange equalisation of Cairo
Branch which was closed during the year ended December 31, 2005.
2006 2005
28. ADMINISTRATIVE EXPENSES
Salaries and allowances 8,260,920 6,566,362
Charge for defined benefit plans 712,948 869,022
One time special award to staff 259,180 -
Non-executive directors' fee, allowances and other expenses 36 1,116 769
Rent, taxes, insurance, electricity, etc. 680,705 673,659
Legal and professional charges 125,429 93,468
Communications 281,567 222,933
Repairs and maintenance 232,935 207,746
Financial charges on leased assets 1,830 2,216
Stationery and printing 297,433 292,956
Advertisement and publicity 209,694 93,354
Donations 28.1 1,850 107,819
Auditors' remuneration 28.2 53,104 53,205
Depreciation 11.2 484,810 565,398
Amortization 11.4 1,824 2,040
Conveyance 81,452 73,206
Entertainment 29,008 25,227
Traveling 233,938 154,647
Security services 508,124 435,405
Staff welfare fund 28.3 300,000 300,000
-
Others 685,574 482,357
13,443,441 11,221,789
28.1 Donations include following amounts exceeding Rs. 0.1 million

President's Earthquake Relief Fund - 100,000
Supply of relief goods to earthquake affected areas - 1,836
Zindagi Trust - 5,983
Layton Rehmatullah Benevolent Trust 1,000 -
Auj International Karachi 200 -
Institute of Technology Pakistan Aeronautical Complex Kamra 500 -
1,700 107,819
None of the directors/executives or their spouses have any interest in the donee.
28.2 Auditors remuneration

M. Yousuf Adil Ford Rhodes 2006 2005
Saleem & Co Sidat Hyder & Co. Total Total
Rupees in ‘000
Audit fee - Annual 2,378 2,378 4,756 3,756
- Interim 1,320 1,320 2,640 2,640
Fee for audit of domestic branches 2,492 2,492 4,984 4,984
Fee for special certifications and sundry advisory services 1,555 1,036 2,591 1,824
Fee for audit of overseas branches including advisory
services and out-of-pocket expenses - - 34,173 37,485
Fee for audit of pension and other funds - - 1,185 -
Out-of-pocket expenses 1,420 1,355 2,775 2,516
9,165 8,581 53,104 53,205
28.3 The charge for staff welfare fund is based on estimated payments to be made out of current year's profits.
2006 2005
29. OTHER CHARGES
Penalties imposed by SBP 208,327 63,206
30. TAXATION
For the year
Current 8,695,598 7,154,002

Deferred 61,981 291,291
30.1 8,757,579 7,445,293
For prior year (s)
Current 530,652 (1,098,709)

Deferred - -
530,652 (1,098,709)
9,288,231 6,346,584
Current taxation includes Rs.504 million (2005: Rs.490 million) of overseas branches.
The tax provision for 2006 has been made on estimated taxable income after charging provision against non-
performing advances for which certificates from SBP, as required by the taxation authorities, are yet to be
received.
30.1 Relationship between tax expense and accounting profit
Accounting profit before tax 26,310,577 19,056,028
Income tax at statutory rate @ 35% (2005: 38%) 9,208,702 7,241,291
Increase/(decrease) in taxes resulting from:
Inadmissible differences 264,982 563,211

Income taxed at reduced rate (218,044) (166,647)
Income exempt from tax (1,048,159) (895,574)
Provisions no longer considered as temporary difference - 539,010
Overseas taxation 550,098 164,002
Tax charge for current year 8,757,579 7,445,293
31. BASIC EARNINGS PER SHARE
Profit for the year Rupees '000 17,022,346 12,709,444
Weighted average number of ordinary shares Numbers '000 709,071 709,071
Basic earnings per share Rupees 24.01 17.92
32. DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share are the same.

2006 2005
Rupees in ‘000
33. CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 78,625,227 71,196,956
Balances with other banks 40,641,679 31,019,330
Overdrawn nostros (453,785) (632,751)
118,813,121 101,583,535
2006 2005
34. STAFF STRENGHT Numbers
Permanent 13,326 13,308

Temporary/on contractual basis 693 516
Bank's own staff strength at the end of the year 14,019 13,824
Outsourced 1,337 1,352
Total Staff Strength 15,356 15,176
35. DEFINED BENEFIT PLANS
General description
General description of the type of defined benefit plan and accounting policy for recognising actuarial gains and
losses is disclosed in note 5.12 to the financial statements.
Principal actuarial assumption
The financial assumptions used in actuarial valuation at December 31, 2006 of pension fund, post retirement
medical benefits, non-encashable leaves, leave encashment, benevolent fund and gratuity schemes are as
follows:
2006 2005
Salary increase 9% per annum 9% per annum
Discount rate 9% per annum 9% per annum
Expected rate of return on plan assets 9% per annum 9% per annum
Pension indexation rate 5% per annum 5% per annum
Rate of inflation in the cost of medical benefits 7% per annum 7% per annum
Number of employees covered under retirement benefit plan 13,084 13,050
35.1 Reconciliation of (recoverable from) pension fund 2006 2005

Present value of defined benefit obligations 12,069,249 10,085,072
Fair value of plan assets (17,333,982) (13,615,308)
Net actuarial gains not recognized 2,312,800 1,006,568
12 (2,951,933) (2,523,668)
The recognized amount has been restricted to present value of any economic benefits available in the form of
refunds from the plan or reduction in future contribution to the plan.
35.1.1. Included herein is a sum of Rs. 3,078 million (2005: 2,598 million) placed under deposit maintained with the bank.
2006 2005
Rupees in ‘000
Movement in (recoverable from) pension fund
Opening net asset (2,523,668) (2,047,859)

Contribution to the fund made during the year (430,131) (613,330)
(2,951,933) (2,523,668)
Charge for pension fund
Current service cost 319,588 302,640

Interest cost 907,656 711,133
Expected return on plan assets (1,225,378) (876,252)
Actuarial (gains)/losses recognized - -
1,866 137,521
Actual return on plan assets 1,454,739 1,139,733
35.1.2 Reconciliation of (recoverable from) pension fund for the five years are as follows:
2006 2005 2004 2003 2002

Rupees in ‘000
Present value of defined benefit obligations 12,069,249 10,085,072 8,889,166 7,721,627 5,923,230
Fair value of plan assets (17,333,982) (13,615,308) (10,953,151) (10,900,651) (7,779,927)
Net actuarial gains not recognized 2,312,800 1,006,568 16,126 1,506,095 458,722
(2,951,933) (2,523,668) (2,047,859) (1,672,929) (1,397,975)
2006 2005
35.2 Reconciliation of payable to medical benefit plan

Fair value of plan assets - -
Net actuarial losses not recognized (318,705) (301,957)
18 2,276,586 2,001,749
Movement in net liability recognized
Opening net assets

Charge for the year 2,001,749 1,771,898
Benefits paid 289,469 291,650
(14,632) (61,799)
Charge for medical benefit plan 2,276,586 2,001,749

Actuarial (gains)/losses recognized 8,948 24,350
289,469 291,650
2006 2005
35.3 Movement in net liability recognized for compensated absences
Opening net assets 1,521,326 1,219,566

18 1,639,708 1,521,326
35.4 Movement in net liability recognized for benevolent fund
Opening net assets 729,725 733,572

Benefits paid (55,973) (60,089)
18 802,937 729,725
Charge for benevolent fund

Actuarial (gains)/losses recognized 44,103 (22,906)
129,185 56,242
35.5 Reconciliation of payable to gratuity benefit plan
Present value of defined benefit obligations 58,205 -

Net actuarial losses not recognized (2,635) -
Unrecognized Past Service Cost (22,161) -
18 33,409 -
Opening liability - -
Charge for the year 33,409 -
Benefits paid - -
33,409 -
Charge for gratuity benefit plan
Current service cost 7,272 -

Interest cost 2,080 -
Past service cost to be recognized 24,057 -
33,409 -
36. COMPENSATION OF DIRECTORS AND EXECUTIVES
President Directors Executives

2006 2005 2006 2005 2006 2005
Rupees in ‘000
Fees - - 1,116 769 - -

Managerial remuneration 6,600 3,600 - - 122,997 117,231
Charge for defined benefit plan - - - - 48,467 17,823
Rent and house maintenance 3,192 3,490 - - 58,424 52,936
Utilities 598 578 - - 12,227 10,381
Medical 1,631 1,356 - - 8,131 10,018
Conveyance - - - - 24,709 35,091
Leave fare assistance 3,000 2,250 - - - -
Bonus & others 17,369 7,978 - - 53,474 27,909
32,390 19,252 1,116 769 328,429 271,389
Number of persons 1 1 7 7 135 131
The president and certain executives are also provided with free use of the bank's cars, household equipments
and free membership of clubs.
Executives mean officers, other than the chief executive and directors, whose basic salary exceeds five hundred
thousand rupees in the financial year.
37. FAIR VALUE OF FINANCIAL INSTRUMENT
37.1 On-balance sheet financial instruments

2006 2005
Book Fair Book Fair
Value Value Value Value
Rupees in ‘000
Assets
Cash and balances with treasury banks 78,625,227 78,625,227 71,196,956 71,196,956
Balances with other banks 40,641,679 40,641,679 31,019,330 31,019,330
Lendings to financial institutions 23,012,732 23,012,732 16,282,942 16,282,942
Investments 139,946,995 138,228,620 156,985,378 155,270,386
Advances 316,110,406 316,110,406 268,838,779 268,838,779
Other assets 14,306,189 14,306,189 12,894,576 12,894,576
612,643,228 610,924,853 557,217,961 555,502,969
Liabilities
Bills payable 10,605,663 10,605,663 1,741,156 1,741,156
Borrowings 11,704,079 11,704,079 8,756,847 8,756,847
Deposits and other accounts 501,872,243 501,872,243 463,426,602 463,426,602
Liabilities against assets subject to finance lease 13,235 13,235 16,629 16,629
Other liabilities 20,339,091 20,339,091 18,959,822 18,959,822
544,534,311 544,534,311 492,901,056 492,901,056
37.2 Off-balance sheet financial instruments

Forward purchase of foreign exchange 33,055,235 33,147,690 36,816,486 36,954,006
Forward sale of foreign exchange 15,352,480 15,354,064 15,623,954 15,761,474
Coupon swap and quanta interest rate swap 4,505,000 4,264,475 4,557,500 4,125,307
Equity futures sold 339,816 339,017 - -
Forward call lending 1,000,000 1,000,000 - -
Forward Purchases of trading in government securities 10,000,000 10,000,000 - -
Forward Sales of trading in government securities 22,500 22,500 500,000 500,000

All quoted investments have been stated at their market values. All un-quoted investments have been stated at
lower of cost or realisable value, being their estimated fair values.
Fair value of loans and advances cannot be determined with reasonable accuracy due to absence of current and
active market. Loans and advances are repriced frequently on market rates and are reduced for any impairment
against non-performing advances determined in accordance with Prudential Regulations.
Fair value of all other assets and liabilities including long-term deposits cannot be calculated with sufficient
accuracy as active market does not exist for these instruments. In the opinion of the management, fair value of
these assets and liabilities are not significantly different from their carrying values since assets and liabilities are
either short term in nature or in the case of deposits are frequently repriced.
38. Segment Details with respect to Business Activities
The segment analysis with respect to business activity is as follows:-
Corporate Trading & Retail Commercial Payment & Agency Assets Retail Others
Finance Sales Banking Banking Settlement Services Management Brokerage
Rupees in ‘000
2006
Total income 168,813 11,191,229 11,707,918 16,101,637 592,940 2,554,070 - - -

Total expenses 1,439 (473,327) 7,221,922 6,248,085 504,351 2,503,560 - - -
Net income 167,374 11,664,556 4,485,996 9,853,552 88,589 50,510 - - -
Segment Assets (Gross) - 269,919,000 93,292,013 307,206,786 - - - - -
Segment Non Performing Loans - - 1,458,278 34,801,608 - - - - -
Segment Provision Required - - 473,902 29,054,770 - - - - -
Segment Liabilities - 6,713,045 128,818,479 417,646,618 - - - - -
Segment Return on net Assets (ROA) (%) 0.00% 4.82% 3.48% 2.36% - - - - -
Segment Cost of funds (%) 0.00% 0.00% 1.07% 3.19% - - - - -
2005
Total income 91,014 11,606,962 7,377,702 11,407,833 418,028 1,833,121 - - -

Total expenses 861 707,219 5,892,934 4,237,536 391,488 2,448,545 - - -
Net income 90,153 10,899,743 1,484,768 7,170,297 26,540 (615,424) - - -
Segment Assets (Gross) - 269,804,720 76,103,560 266,152,240 - - - - -
Segment Non Performing Loans - - 799,435 32,938,336 - - - - -
Segment Liabilities - 8,796,818 103,297,032 389,807,009 - - - - -
Segment Return on net Assets (ROA) (%) 0.00% 4.23% 1.44% 1.84% - - - - -
Segment Cost of funds (%) 0.00% 0.00% 1.18% 2.32% - - - - -
39. TRUST ACTIVITIES
39.1 National Investment Trust (NIT)
Under a trust deed, the bank provides services, as a trustee to NIT and is performing functions of sale/purchase of
NIT units, safe custody and maintaining unit holders accounts. The bank is keeping approximately 1.3 billion
shares with market value of Rs.72,832 million (2005: Rs.77,724 million) in safe custody/Central Depository
Company on behalf of NIT.
39.2 Long-term Credit Fund (LTCF)
Consequent upon the NDFC amalgamation, the bank manages on behalf of the GoP, LTCF established from the
proceeds of loans disbursed by various international funding agencies for financing private sector energy
development projects. Fund assets are accounted for separately from those of the bank and amounted to Rs.38
billion on December 31, 2006 (2005: Rs.41 billion). Administrative fee relating to the management of LTCF is
accounted for on receipt basis.
39.3 Qarz-e-Hasna Fund
The work relating to Qarz-e-Hasna Scheme was attended by Pakistan Banking Council (PBC) since inception.
PBC was dissolved in January 1997. In order to fill the void created by the dissolution of PBC and in order to
continue the scheme, SBP decided to entrust all funds and transfer all record relating to Qarz-e-Hasna scheme for
education to the bank with the instructions to perform all work relating to the Fund
Till December 31, 2006 SBP had transferred Rs.244 million (2005: Rs.244 million) to the bank. Assets and
liabilities relating to the Fund have been treated as off-balance sheet item in the financial statements.
40. RELATED PARTY TRANSACTIONS
The bank has related party relationship with its associated undertakings, subsidiary companies, employee benefit
plans, and its key management personnel (including their associates). The details of investments in subsidiary
companies and associated undertakings are stated in note 9 to these financial statements.
Transactions between the bank and its related parties are carried out under normal course of business except
employee staff loans, provident fund and loan given to NBP Exchange Company Limited, that are as per
agreement.
Detail of loan and advances to the companies or firms, in which the directors of the bank are interested as directors,
partners or in case of private companies as members, are given in note 10.7 to these financial statements. There
are no transactions with key management personnel other than under their terms of employment. Contributions to
an approval in respect of staff retirement and other benefit plans as disclosed in note 35 to these financial
statements. Remuneration to the executive and disposal of vehicles are disclosed in notes 36 and 11.7 to the
financial statements
2006 2005
Rupees in ‘000
Balance outstanding at year end

Advances to:
Subsidiaries 719,220 603,747

Associates 1,600,070 1,970,002
Key management executives * 65,225 52,117
Debts due by company in which a director of the bank is interested

as director 222,759 119,319
Placements with:
Subsidiaries - -
Joint venture 349,550 211,414
Investments with associates/subsidiaries 27,331 27,331
* This includes loans extended to certain key management executives in accordance with the terms
of employment
2006 2005
Rupees in ‘000
Deposits from:
Subsidiaries
Opening balance 317,593 536
Received during the year - net - 317,057
Repaid during the year - net (303,426) -
Closing Balance 14,167 317,593
Pension fund
Received during the year - net 479,178 903,424
Repaid during the year - net - -
Closing Balance 3,077,536 2,598,358
Provident fund
Received during the year - net 732,235 1,738,162
Borrowings from:
Subsidiary - 249,751
Obligation under finance lease
Subsidiary 9,260 16,284
Income for the year
On advances/placements with:
Subsidiaries 10,323 9,501
Associates 46,105 58,199
Debts due by company in which a director of the
bank is interested as director 9,102 4,341
Commission received from subsidiaries - 415
Commission received from associates - 1,824
Expenses for the year
Remuneration to key management executives 66,157 54,997
Charge for defined benefit plan 14,577 2,302
On deposits of:
Subsidiaries 344 359
Provident fund ** 976,870 730,385
Commission paid to subsidiaries 4,921 3,064
Other receivables 23,284 32,111
Other payables 144 -
** Had the interest on deposits from provident fund paid at the average rate of twenty years Government paper,
Interest would have been lower by Rs.306 million.
40.1 Although the Federal Government and the SBP held about 75.60% shares of the bank (2005: 75.60%), the
transactions with these entities have not been treated as related party transactions for the purpose of this
disclosure.
41. CAPITAL ADEQUACY
The risk weighted assets to capital ratio, calculated in accordance with the State Bank's guidelines on capital
adequacy was as follows:-
2006 2005
(Restated)
Regulatory Capital Base Rupees in ‘000
Tier I Capital
Shareholders Capital/Assigned Capital 7,090,712 5,908,927
Reserves 10,504,435 8,802,200
Unappropriated profit 32,074,677 19,372,523
Less: Adjustments (1,349,213) (1,349,213)
Total Tier I Capital 48,320,611 32,734,437
Tier II Capital
Subordinated Debt (upto 50% of total Tier I Capital) - -
General Provisions subject to 1.25% of Total Risk Weighted Assets 2,162,008 -
Exchange equalization reserve 3,374,825 3,552,056
Revaluation Reserve (upto 50%) 14,400,593 19,067,559
Total Tier II Capital 19,937,426 22,619,615
Eligible Tier III Capital - -

Total Regulatory Capital (a) 68,258,037 55,354,052
Risk-Weighted Exposures 2006 2005

Risk Adjusted Risk Adjusted
Book Value Value Book Value Value
Credit Risk Rupees in ‘000
Balance Sheet Items:-
Cash and other liquid Assets 119,266,906 8,128,336 102,216,286 6,203,866
Money at call 23,012,732 1,766,000 16,282,942 1,404,000
Investments 139,946,995 47,948,660 156,985,378 51,025,571
Loans and Advances 312,073,126 244,182,290 265,836,708 203,244,377
Fixed Assets 9,681,974 9,681,974 9,454,365 9,454,365
Other Assets 27,113,698 17,672,740 23,941,056 13,327,126
631,095,431 329,380,000 574,716,735 284,659,305
Off Balance Sheet items
Loan Repayment Guarantees 30,039,047 15,510,825 15,786,936 10,993,521
Purchase and Resale Agreements - - - -
Performance Bonds etc 23,653,597 8,340,146 22,459,662 7,094,877
Revolving underwriting Commitments - - - -
Stand By Letters of Credit 160,542,984 16,745,802 103,750,961 15,559,035
Outstanding Foreign Exchange Contracts
- Purchase 33,055,235 232,166 36,816,486 174,123
- Sale 15,352,480 131,394 15,623,954 160,319
Single currency Interest Rate SWAP 4,505,000 36,040 4,557,500 22,788
267,148,343 40,996,373 198,995,499 34,004,663
Credit risk-weighted exposures 370,376,373 318,663,968
Market Risk
General market risk 42,925,385 40,928,250
Specific market risk 332,573 181,600
Market risk-weighted exposures 43,257,958 41,109,850
Total Risk-Weighted exposures (b) 413,634,331 359,773,818
Capital Adequacy Ratio [ (a) / (b) x 100) ] 16.50 15.39

42. RISK MANAGEMENT
42.1 Credit risk
Credit risk exposure in respect of earning assets and off-balance sheet financial instruments represents carrying
values of assets and contingencies which could be impacted as a result of failure by the bank's counter-parties to
discharge their obligations under financial instruments and cause the bank to incur financial loss.
Concentration of credit risk arises from exposures to customers having similar characteristics in terms of industry
in which they are engaged, geographical location in which they operate such that their ability to discharge
contractual obligations may be similarly affected by change in political, economical and other conditions.
Significant concentrations of bank's risk assets by industrial and geographical sectors are set out below.
Credit risk is managed in terms of lending policy, approved by the board of directors and other laid down
procedures outlined in the Standard Procedures Manual and related circulars. Credit limits are established for all
counter-parties after a careful assessment of their credit worthiness. An effective credit granting procedure, which
requires pre-sanction evaluation of credit proposal, adequacy of security and pre-disbursement examination of
charge documents has been established and managed by Credit Management Group (CMG) at Head Office.
Where possible, all loans and advances are secured by acceptable form of collateral to mitigate credit risk. The
CMG is also responsible for continuing review and monitoring of borrowers' accounts and effective compliance of
Prudential Regulations.
The bank maintains a sound advances portfolio diversified in nature to counter the risk of credit concentration and
further limits risk through diversification of its assets by geographical and industrial sector.
Cross border exposures are controlled by the bank by considering country/sovereign risk and these are updated
on regular basis.
Special Assets Management Group (SAMG) of the bank is responsible for monitoring the stuck up advances. It
negotiates with the borrowers and takes legal actions against the delinquent borrowers.
42.1.1. SEGMENTAL INFORMATION
42.1.1.1 Segment by class of business

2006
Contingencies &
Advances (Gross) Deposits Commitments
Rupees in Percentage Rupees in Percentage Rupees in Percentage
‘000 % ‘000 % ‘000 %
Chemical and pharmaceuticals 4,693,230 1.35 461,974 0.09 2,431,576 1.14

Agribusiness 20,268,072 5.82 12,054,588 2.40 162,534 0.08
Textile 56,452,813 16.20 1,640,154 0.33 8,169,668 3.81
Cement 11,369,061 3.26 304,041 0.06 1,844,936 0.86
Sugar 6,509,554 1.87 202,139 0.04 48,562 0.02
Flour 907,409 0.26 86,439 0.02 -
Rice processing 7,082,252 2.03 1,574,744 0.31 6,656
Shoes & leather garments 1,103,387 0.32 197,288 0.04 32,004 0.01
Automobile and
transportation equipment 4,549,772 1.31 331,255 0.07 451,410 0.21
Financial 12,770,905 3.67 57,769,885 11.51 6,680,552 3.12
Insurance 6,521 - 1,001,831 0.20 -
Transportation 6,936,637 1.99 1,549,778 0.31 191,911 0.09
Real Estate Construction 3,002,214 0.86 1,519,324 0.30 467,788 0.22
Electronics and electrical
appliances 4,568,911 1.31 479,109 0.10 1,502,778 0.70
Production and transmission
of energy 13,141,297 3.77 2,254,106 0.45 18,954,713 8.85
Food and tobacco 2,409,530 0.69 483,804 0.10 17,604 0.01
Fertilizer 2,538,269 0.73 380,349 0.08 60,705 0.03
Metal products 5,266,100 1.51 114,790 0.02 897,844 0.42
Oil, gas, petroleum
and energy 24,106,681 6.92 14,068,691 2.80 9,735,568 4.54
Telecommunication 7,677,171 2.20 18,653,001 3.72 4,897,886 2.29
Hotel and services 2,962,337 0.85 5,808,852 1.16 511,459 0.24
Public sector commodity
operations 20,272,868 5.82 5,689,310 1.13 468,784 0.22
Individuals 61,218,745 17.57 188,168,759 37.49 1,474,146 0.69
General traders 11,447,551 3.29 16,312,828 3.25 1,496,007 0.70
Others 57,109,171 16.40 170,765,204 34.02 153,730,537 71.75
348,370,458 100.00 501,872,243 100.00 214,235,628 100.00
42.1.1.2 Segment by sector

Public/ Government 63,218,048 18.15 171,696,101 34.21 151,780,179 70.85
Private 285,152,410 81.85 330,176,142 65.79 62,455,449 29.15
348,370,458 100.00 501,872,243 100.00 214,235,628 100.00
42.1.1.3 Details of non-performing advances and specific provisions by class of business segment
2006 2005
Specific Specific
Classified Provisions Classified Provisions
Advances Held Advances Held
Rupees in ‘000
Chemical and pharmaceuticals 1,553,889 1,484,888 1,498,584 1,448,439

Agribusiness 1,102,793 263,248 514,785 147,503
Textile 11,883,548 10,067,133 9,939,566 8,549,330
Cement 2,182,965 1,479,413 2,314,712 1,479,041
Sugar 1,523,504 1,256,677 1,630,832 1,350,595
Flour 102,895 80,434 134,903 122,787
Rice processing 321,257 180,805 268,661 175,625
Shoes & leather garments 178,190 154,602 157,719 135,256
Automobile and
transportation equipment 317,633 273,066 116,883 78,849
Financial 66,404 39,019 184,905 184,905
Transportation 223,215 223,215 546,766 546,266
Real Estate Construction 138,071 105,164 103,245 98,443
appliances of energy 146,289 142,543 240,440 236,103
Food and tobacco 1,073,901 1,020,411 1,215,606 1,156,445
Fertilizer 190,795 160,680 184,699 164,861
Metal products 1,922,181 1,578,470 2,931,249 2,488,943
Oil, gas, petroleum
and energy 978,385 626,507 973,885 655,297
Hotel and services 9,306 9,306 13,324 4,949
Individuals 355,485 210,654 284,650 105,614
General traders 3,880,361 3,429,779 4,786,751 4,215,035
Others 8,108,819 6,742,658 5,695,606 5,044,444
36,259,886 29,528,672 33,737,771 28,388,730
42.1.1.4 Details of non-performing advances and specific provisions by sector
Public/ Government 1,137,579 926,431 1,924,409 1,713,261

Private 35,122,307 28,602,241 31,813,362 26,675,469
36,259,886 29,528,672 33,737,771 28,388,730
42.1.1.5 Geographical segments analysis

2006
Contingencies
Profit before Total assets Net assets &
taxation employed employed Commitments
Rupees in ‘000
Pakistan 24,869,842 511,759,118 73,246,525 198,671,895
Asia Pacific (including South Asia) 567,267 24,163,128 4,988,391 5,745,747
Europe (13,563) 6,975,050 1,648,668 4,304,417
United States of America and Canada 286,209 14,452,914 1,403,386 5,481,361
Middle East 600,822 77,782,501 667,148 32,208
26,310,577 635,132,711 81,954,118 214,235,628
42.2 Market risk
Market risk refers to the risk to an institution resulting from movements in market variables, in particular, changes in
interest rates, foreign exchange rates, and equity and commodity prices.
Market risk management strategy states the risk tolerance level, which the institution is prepared to assume, and
the business goals it plan to achieve. NBP market risk office makes sure that Bank's Market risk exposure, i.e.
exposure in Money Market, Foreign Exchange Market and Equity Market, adheres with the risk tolerance level and
matches with overall business goals set by Board of Directors (BOD), Risk Management Committee (RMC) and
Assets & Liability Committee (ALCO). Various risk management reports are generated e.g. 'Exception reports',
'Limit reports', 'Stress Testing reports', 'Money market and FX Gap reports', 'Counterparty limit report', 'CRR', and
'SLR' etc for the purpose of market risk measurement and monitoring. Market risk is in the process of setting up
Asset & Liability Management (ALM) system that will assist ALCO in monitoring overall Bank's Asset & Liability
portfolio.
42.2.1 Foreign exchange risk

2006
Net foreign
Off-balance currency
Assets Liabilities sheet items exposure
Rupees in ‘000
Pakistan Rupee 479,003,826 428,521,833 (17,303,401) 33,178,592
United States Dollar 116,810,799 99,319,572 13,066,227 30,557,454
Great Britain Pound 3,032,881 3,148,852 2,334,984 2,219,013
Euro
7,872,208 4,558,165 2,202,155 5,516,198
Japanese Yen
Other currencies 4,067,857 3,808,732 (269,550) (10,425)
24,345,140 13,821,439 (30,415) 10,493,286
156,128,885 124,656,760 17,303,401 48,775,526
635,132,711 553,178,593 - 81,954,118
Currency risk arises where the value of financial instrument changes due to changes in foreign exchange rates. In
order to manage currency risk exposure the bank enters into ready, spot, forward and swap transactions with the
SBP and in the inter bank market.
The bank's foreign exchange exposure comprises of forward contracts, purchases of foreign bills, foreign
currencies cash in hand, balances with banks abroad, foreign placements with SBP and foreign currencies assets
and liabilities. The net open position is managed within the statutory limits, as fixed by the SBP. Counter-parties
limits are also fixed to limit risk concentration. Appropriate segregation of duties exist between the front and back
office functions while compliance with the net open position limit is independently monitored on an ongoing basis.
The liabilities in foreign currencies include a sum of Rs.787 million (2005: Rs.1,011 million) being deposits in
foreign currencies of local branches against which the bank has obtained forward cover through SBP.
42.2.2 Equity position risk
Investments in equity are generally regarded as riskier relative to fixed income securities owing to the inherent
volatility of stock market prices. The risk from various factors that include, but are not limited to:
- Changes in business cycle affecting the business of the company in which the investment is made. Change in
business circumstances (i.e. fundamentals) of the company, its business sector, industry and/ or economy in
general.
- Mismanagement of the investee company, third party liability whether through class action or otherwise or
occurrence of other events such as strikes, fraud, etc. in the company in which investment is made.
- Fluctuation in the shares' prices resulting from their dependence on market sentiment, speculative activity,
supply and demand of shares and liquidity in the market.
- The possibility of defaults by participant or failure of the stock exchanges, the depositories, the settlement or
the clearing system is discharging their fiduciary responsibilities.
- Any government or court order restraining payment of dividend by a company to its shareholders.
The bank mitigates the aforesaid risk as follows:
- Through diversification and capping maximum exposure in a single sector/company. Additionally continuous
follow up of these sectors and companies through self monitoring and fundamentals research from reputable
brokerage houses.
- Compliances with SECP Corporate Governance Rules by the investee company prudent investing practices
(focus on dividend payout history).
- The bank will refrain from speculative trading and the investment will be made as per the guidelines on liquidity
and growth as per investment policy manual or set by the Board of Directors.
- The bank follows a delivery versus payment settlement system thereby minimizing risk available in relation to
settlement risk.
42.2.3 Mismatch of Interest Rate Sensitive Assets and Liabilities
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest
rates. The bank is exposed to interest/mark-up rate risk as a result of mismatches or gaps in the amount of
interest/mark-up based assets and liabilities that mature or re- price in a given period. The bank manages this risk
by matching/re-pricing of assets and liabilities. The bank is not excessively exposed to interest/mark-up rate risk as
its assets and liabilities are re-priced frequently. The Assets and Liabilities Committee (ALCO) of the bank monitors
and manages the interest rate risk with the objective of limiting the potential adverse effects on the profitability of
the bank.
2006
Effective Exposed to Yield / Interest risk Non-interest

Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above financial
rate Total Month Months Months Year Year Year Year Year 10 years instruments
Rupees in ‘000
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks 3.05% 78,625,227 5,328,059 18,265,650 13,209,920 - - - - - - 41,821,598
Balances with other banks 5.43% 40,641,679 31,455,316 5,515,292 2,391,174 300,710 119 - - - - 979,068
Lending to financial institutions 5.07% 23,012,732 - 3,646,179 16,747,792 2,618,761 - - - - - -
Investments 8.56% 139,946,995 5,722,061 35,634,258 52,610,720 13,133,085 6,166,539 15,132,315 2,013,336 8,959,974 574,707 -
Advances 10.08% 316,110,406 62,590,106 52,350,176 97,332,079 48,312,632 46,882,213 158,300 1,597,900 1,541,900 5,345,100 -
Other assets 0.00% 14,306,189 - - - - - - - - - 14,306,189
612,643,228 105,095,542 115,411,555 182,291,685 64,365,188 53,048,871 15,290,615 3,611,236 10,501,874 5,919,807 57,106,855
Liabilities
Bills payable 0.00% 10,605,663 - - - - - - - - - 10,605,663
Borrowings 3.78% 11,704,079 1,610,623 8,828,364 109,600 - - - 70,800 - - 1,084,692
Deposits and other accounts 2.73% 501,872,243 277,663,751 57,430,401 26,417,526 2,317,916 - - - - - 138,042,649
Sub-ordinated loans - - - - - - - - - - -
Liabilities against assets subject to finance lease 13,235 - - - - - 13,235 - - - -
Other liabilities 0.00% 20,339,091 - - - - - - - - - 20,339,091
544,534,311 279,274,374 66,258,765 26,527,126 2,317,916 - 13,235 70,800 - - 170,072,095
On-balance sheet gap 68,108,917 (174,178,832) 49,152,790 155,764,559 62,047,272 53,048,871 15,277,380 3,540,436 10,501,874 5,919,807 (112,965,240)
Off-balance sheet financial instruments
Interest rate swaps 4,505,000 - - - - 4,505,000 - - - - -

Equity futures 339,816 - 339,816 - - - - - - - -
Forward call lending 1,000,000 1,000,000 - - - - - - - - -
Forward purchase of foreign exchange 33,055,235 5,210,218 6,954,697 10,168,736 10,721,584 - - - - -
Forward sale of foreign exchange 15,352,480 4,011,439 2,532,404 3,510,5521 5,298,085 - - - -
Forward purchase of trading in government securities 10,000,000 10,000,000 - - - - - - - -
Forward sales of trading in government securities 22,500 22,500 - - - - - - - -
Off-balance sheet gap 64,275,031 20,244,157 9,826,917 13,679,288 16,019,669 4,505,000 - - - - -
Total Yield/Interest Risk Sensitivity Gap 132,383,948 (153,934,675) 58,979,707 169,443,847 78,066,941 57,553,871 15,277,380 3,540,436 10,501,874 5,919,807 (112,965,240)
Cumulative Yield/Interest Risk Sensitivity Gap (153,934,675) (94,954,968) 74,488,879 152,555,820 210,109,691 225,387,071 228,927,507 239,429,381 245,349,188 132,383,948
42.3 Liquidity Risk
Liquidity risk is the risk that the bank will be unable to meet its liability when they fall due. To limit this risk, management has arranged diversified funded
sources, manages assets with liquidity in mind and monitors liquidity on daily basis. In addition, the bank maintains statutory deposits with central banks
inside and outside Pakistan.
42.3.1 Maturities of Assets and Liabilities

2006
Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5

Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10
Total Month Months Months Year Year Year Year Year
Rupees in ‘000
Assets
Cash and balances with treasury banks 78,625,227 47,149,657 18,265,650 13,209,920 - - - - - -
Balances with other banks 40,641,679 32,434,384 5,515,292 2,391,174 300,710 119 - - - -
Lending to financial institutions 23,012,732 - 3,646,179 16,747,792 2,618,761 - - - - -
Investments 139,946,995 3,854,699 31,149,258 9,280,763 30,254,514 21,737,459 20,723,117 8,337,711 11,369,974 3,239,500
Advances 316,110,406 42,973,488 38,507,774 46,047,045 74,029,411 29,867,599 30,681,841 38,739,435 14,744,980 518,833
Operating fixed assets 9,681,974 - - - - - 9,681,974 -
Deferred tax assets - - - - - - - - - -
Other assets 27,113,698 5,125,324 6,172,019 3,500,790 44,188 3,033,699 8,910,611 327,067 - -
635,132,711 131,537,552 103,256,172 91,177,484 107,247,584 54,638,876 60,315,569 47,404,213 35,796,928 3,758,333
Liabilities
Bills payable 10,605,663 10,605,663 - - - - - - - -
Borrowings 11,704,079 2,064,408 9,016,364 109,600 188,000 254,907 - 70,800 - -
Deposits and other accounts 501,872,243 391,728,528 69,631,553 14,454,044 7,621,612 4,055,681 2,386,141 2,954,218 4,081,889 4,958,577
Sub-ordinated loans - - - - - - - - - -
Liabilities against assets subject to finance lease 13,235 - - - - - 13,235 - - -
Deferred tax liabilities 2,387,073 - - - 2,833,628 (446,555) -
Other liabilities 26,596,300 8,492,615 708,782 3,714,835 - 10,322,820 - 1,974,852 - 1,382,396
553,178,593 412,891,214 79,356,699 18,278,479 7,809,612 14,633,408 2,399,376 7,833,498 3,635,334 6,340,973
Net assets 81,954,118 (281,353,662 ) 23,899,473 72,899,005 99,437,972 40,005,468 57,916,193 39,570,715 32,161,594 (2,582,640)
Share capital 7,090,712

Reserves 13,879,260
Unappropriated profit 32,074,677
Surplus on revaluation of assets 28,909,469
81,954,118
Savings and current deposits have been classified as due upto one months. However, the bank does not expect these deposits to fall below their current level.
42.4 Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external events
In terms of Road map set forth by the National Regulators all banks in Pakistan are mandated to implement BII Basic Indicator approach for Operational Risk for
calculation of Minimum Capital Requirement (MCR) from January 1, 2008. Parallel run for which has started from July 1, 2006. However AMA approach is not
being offered by SBP for the time being. With the strengthening of operational Risk management department the bank plans to move towards standardized
approach for Operational Risk Management. Time lines for adopting this approach shall be determined once the bank's road map of BII is finalized. The bank has
embarked upon Basic Indicator Approach for the time being.
The bank is in the process of setting up separate Operational Risk Management unit that will analyze the existing
data for developing key risk indicators, assess additional data required for testing and strengthening controls. The
bank is already working on Business continuity and disaster recovery plan under the supervision of Operations
Group.
43. SUBSEQUENT EVENT
The Board of Directors has proposed a cash dividend of Rs.4 per share (2005: Rs. 2.5 per share) amounting to
Rs. 2,836 million (2005: Rs. 1,477 million) and bonus shares in the proportion of 15 ordinary shares per 100
ordinary shares held (2005: 20) amounting to Rs. 1,064 million (2005: Rs. 1,182 million) in its meeting held on
February 24, 2007 for approval of the members at the annual general meeting to be held on April 2, 2007. These
financial statements do not reflect this appropriation as explained in note 5.1.
44. GENERAL
44.1 These accounts have been prepared in accordance with the revised forms of annual financial statements of the
banks issued by the State Bank of Pakistan through its BSD Circular No. 04 dated February 17, 2006.
44.2 Figures have been rounded off to the nearest thousand rupees.
44.3 Prior year's figures have been reclassified, wherever necessary for the purposes of comparison, better
presentation and changes in disclosure requirements. Significant changes are as follows:
- Interest earned on interest rate SWAP reclassified from other income to mark-up/ return/ interest amounting
Rs. 58.930 million.
- Computer software reclassified from property and equipment to intangible assets amounting Rs. 4.087 million
(written down value).
45. DATE OF AUTHORIZATION FOR ISSUE
The financial statements were authorized for issue on February 24, 2007 by the Board of Directors of the Bank.
your
Savings
reward
PLS Saving Account

Earn upto 7.25% p.a.+
Minimum saving balance of Rs. 20,001 & a maximum balance of Rs. 300,000*
Free NBP Cash Card (ATM + Debit)
Convenience of NBP Online Aasan Banking (for online banking customers)
Two debit withdrawals allowed in a month & no limit on number
+ Profit rates are expected
* Certain conditions apply.
of deposit transactions
Profit calculated monthly and paid on half yearly basis
Annexure “I”
Referred to in Note 9.15 to
Details of Investment as at December 31, 2006 the financial statements
1.1 Government Compensation Bonds
Investee Terms of Redemption Rate of 2006 2005
Principal Interest Interest % Cost
Rupees in ‘000
Govt. Bond (Public Sector Enterprises) 1-Jun-09 Annually 6% 755,859 755,859

Govt. Bond (Heavy Mechanical Complex) 1-Mar-09 Annually 6% 385,996 385,996
Govt. Bond (Shahnawaz Bhutto Sugar Mills) 30-Sep-09 Annually 6% 56,364 56,364
Govt. Bond (Public Sector Enterprises) 1-Jul-10 Annually 9% 1,132,963 1,132,963
6 months average of
Govt. Bond (Pakistan Engineering Company) Semi-annually Semi-annually weighted average yield of - 92,806
Govt. Bond (Pakistan Engineering Company) Semi-annually Semi-annually T.Bills ('8.5614%) - 53,212
2,331,182 2,477,200
1.2 Particulars of investments held in listed companies and Modarabas
1.2.1 Ordinary Shares
Investee No. of shares/certifcates held

Market Value
2006 2005 2006 2005
Rupees in ‘000
Held-for-trading
Askari Commercial Bank 200,000 - 21,000 -

Azgard Nine - 28,000 - 1,302
Bank Al - Falah 250,000 - 10,462 -
Bank of Punjab 723,500 - 73,269 -
Callmate Telips Tellcom - 50,000 - 3,983
DG Khan Cement 56,990 90,000 3,598 9,594
Dewan Farooq Motors - 50,000 - 1,670
Fauji Fertilizer Bin Qasim 100,000 - 2,860 -
Faysal Bank 200,000 - 12,110
Hub Power Company Limited 1,297,000 498,500 35,029 11,964
ICI Pakistan - 50,000 - 7,025
Lucky Cement 65,500 - 3,933
MCB Bank 130,000 - 32,008
Nishat (Chunian) - 36,900 - 3,151
Oil & Gas Development Corporation 150,000 - 17,220
Pakistan Oil Fields 100,000 119,200 34,985 51,017
Pakistan Petroleum Limited 95,000 100,000 22,050 21,025
Pakistan State Oil 180,000 170,000 52,930 70,865
Pakistan Telecommuniction Company Limited 150,000 - 6,655
3,697,990 1,192,600 328,109 181,596

Rating
Available-for-sale JCR-VIS PACRA
Al-Ghazi Tractors Limited Unrated Unrated 32,900 33,000 7,189 6,501

Al-Noor Sugar Mills Limited Unrated Unrated 43,300 255,300 1,310 5,042
Askari Leasing Limited Unrated Unrated 8,500 44,350 230 1,464
Allied Bank Ltd Unrated A+ 25,000 - 2,338 -
Attock Cement Pakistan Ltd A+ Unrated 100,000 - 6,610 -
Attock Petrolium Ltd Unrated Unrated 178,000 - 69,055 -
Baig Spinning Mills Limited Unrated Unrated 662,050 662,050 2,350 6,289
Bank Al Habib Unrated Unrated - 19,000 - 1
Bank Al Falah Ltd Unrated AA 1,354,033 - 56,599 -
Bankislami Pakistani Ltd Unrated AA 1,900,700 - 19,577 -
Bawany Sugar Mills Ltd Unrated Unrated 35,200 - - -
BOC Pakistan Unrated Unrated 61,957 25,486 8,745 4,473
Bolan Casting Limited Unrated Unrated 714,300 714,500 51,430 50,015
Brother Textile Mills Ltd Unrated Unrated 134,146 - 335 -
Cherat Cement Unrated Unrated 28,750 - 1,179 -
Chenab Limited Unrated Unrated - 736,000 - 15,456
Cherat Papersack Limited Unrated Unrated 190,800 190,800 8,157 12,593
Colony Textile Mills Unrated Unrated 1,451,166 - 12,625 -
Clariant Pakistan Limited Unrated Unrated 36,498 107,470 7,373 20,366
Cynamid (Wyeth Pakistan)
(Face value: Rs.100 each) Unrated Unrated - 1,544 - 3,026
Dandot Cement Limited Unrated Unrated 160,000 160,000 1,936 -
Dadabhoy Cement Industries Unrated Unrated 137,400 - 824 -
Dewan Automotive Engg. (formerly:
Allied Motors Limited) Unrated Unrated 1,001,333 - - -
Balance carried forward 257,862 125,226
Particulars of Investment held in listed companies and Modarabas

Rating Market Value
JCR-VIS PACRA 2006 2005 2006 2005
Available-for-sale Rupees in ‘000
Balance brought forward 257,862 125,226

Dewan Hattar Cement Limited
(formerly Saadi Cement Limited) Unrated Unrated 254,000 354,000 2,540 5,717
Dewan Cement Unrated Unrated 1,502,000 1,000 15,771 18
Dewan Salman Fibres Limited Unrated A 1,300,000 9,644 9,945 154
Escort Investment Bank Limited Unrated Unrated 1,184,092 1,050,000 16,104 16,958
Faran Sugar Mills Limited A Unrated - 267,500 - 4,227
Fauji Fertilizer Company Limited Unrated Unrated 4,619,908 5,897,260 487,631 807,925
Fauji Cement Industries Ltd Unrated Unrated 41,691 - 630 -
FFC Bin Qasim Unrated Unrated 477 - 14 -
Frontier Ceramics Limited Unrated Unrated 1,371,000 1,370,600 4,456 8,361
Faysal Bank Ltd Unrated Unrated 367,355 - 22,225 -
First Dawood Investment Bank Limited
(formerly: General Leasing Modaraba 1st.) AA AA 2,507 17,437 40 425
First National Equity Unrated A+ 1,400,000 - 53,900 -
Glaxosmithkline (Glaxo Welcome) BBB Unrated 103,683 108,848 16,366 20,273
Guardian Leasing Modaraba Unrated Unrated 631,300 631,300 5,050 5,461
Ghribwal Cement BBB+ Unrated 1,339,000 - 13,524 -
Habib Bank Modaraba 1st. Unrated Unrated 265,420 265,420 2,256 2,893
Haji Mohammad Ismail Mills Unrated Unrated 1,683,150 1,683,150 5,049 11,445
Hala Spinning Mills Limited Unrated Unrated 1,639,500 1,639,500 - -
Harum Textile Unrated Unrated 128,000 138,000 - -
Hub Power Company Limited Unrated Unrated 9,891,005 10,639,000 267,057 255,336
Honda Atlas Cars Unrated Unrated - 1,000 - 114
Inter Asia Leasing Company Limited Unrated Unrated 50,000 50,000 - 83
Junaid Cotton Mills Limited Unrated Unrated 32,800 32,800 - -
Kaisar Arts & Krafts Unrated Unrated 850,000 850,000 - 468
KASB Bank Limited Unrated Unrated 760 760 12 11
Khairpur Sugar Mills Limited Unrated BBB+ 3,088,000 3,088,000 - -
Kohinoor Mills Ltd Unrated Unrated 374,727 - 9,012 -
Khurshed Spinning Mills Unrated Unrated 60,400 - -
Kohinoor Weaving Mills Limited Unrated Unrated - 350,661 - 13,592
Kohinoor Textile Mills Limited Unrated Unrated 306,900 - 6,997 -
Kohinoor Industries Ltd Unrated Unrated 88,558 - 961
Kohat Cement Unrated Unrated 280,500 - 8,920 -
Kohat Textile Mills Unrated A 2,906,900 - 10,756 -
Kot Addu Power Co Unrated Unrated 494,100 - 20,110 -
Lucky Cement Unrated Unrated 58,449 - 3,501 -
Libaas Textile Limited Unrated Unrated 250,000 250,000 - -
Mehran Modaraba 1st. Unrated Unrated 1,000 1,000 2 2
Mehran Sugar Mills Limited Unrated Unrated - - - -
(Face value: Rs.5 each) Unrated Unrated 500 35,500 12 632
Millat Tractors Limited Unrated Unrated 407,160 339,300 114,819 100,263
Mirza Sugar Mills Limited Unrated Unrated 627,740 900,000 1,789 3,015
Modaraba Al-Mali Unrated Unrated - 23,004 - 213
Mohib Textile Unrated A- 425,600 425,600 - -
MCB Bank Unrated Unrated 89,491 - 22,024 -
Muhammad Farooq Textile Unrated AA+ 41,008 - 232 -
National Refinery Limited Unrated Unrated - - - -
NIB (NDLC-IFI Bank) Unrated AAA 174,373 174,373 4,255 6,077
Nishat Mills Unrated A+ 400,180 50,000 35,136 5,675
Nishat Chunian Unrated A+ 332,000 - 12,666 -
Oil & Gas Development Corporation Unrated Unrated 185,655 1,529,318 21,295 180,460
Orix Leasing Pakistan Limited Unrated Unrated 182,735 182,735 4,477 5,336
Packages Limited AA(p) AA+ 168,167 153,167 35,315 30,940
Pakistan Engineering Company Limited Unrated AA 135,240 135,240 13,254 12,983
Pakistan Oilfields Limited Unrated Unrated - 220,500 - 94,374
Pakistan Reinsurance Unrated Unrated - 27,500 - 2,393
Pakistan Synthetic Unrated Unrated 22,500 - 158 -
PTA Pakistan Limited Unrated Unrated 70,296 - 344 -
Pakistan State Oil Company Limited Unrated Unrated 161,567 320,969 47,501 133,796
Pakistan Petrolium Unrated AAA 25,472 - 5,910 -
Pangrio Sugar Unrated Unrated 800 600,400 - -
Parke Davis Company Limited Unrated Unrated - - - -
Pakistan International Airlines Corporation Unrated Unrated 20,122,813 20,260,813 141,866 249,208
"A-class" 16,625 37,195
Pakistan National Shipping Corporation Unrated Unrated 399,636 386,236 87,104 231,012
Pakistan Telecommuniction Company Limited Unrated Unrated 1,966,240 3,532,300 8,081 7,542
Punjab Oil Mills Limited Unrated Unrated 307,850 307,850 2,746 -
Balance carried forward 1,813,554 1,892,936


Investee Rating No. of shares/certifcates held
JCR-VIS PACRA Market Value
2006 2005 2006 2005
Balance brought forward 1,813,554 1,892,936
Prime Commercial Bank Unrated A+ 56,562 - 2,746 -

Redco Textile Mills Limited Unrated Unrated 1,300 1,300 - -
Saif Textile Mills Limited A- Unrated 6,000 6,308 93 170
Sahrish Textile Ltd Unrated Unrated 107,543 - -
Sakrand Sugar Mills Limited Unrated Unrated 3,896,000 3,801,600 12,272 15,967
Saudi Pak Commercial Bank Limited A- Unrated 20,410 - 346 -
Searle Pakistan Limited BBB Unrated 76,909 129,780 1,969 5,386
Shahmurad Sugar Mills Limited Unrated Unrated - -
(Face value: Rs.5000 each) Unrated Unrated - 47,300 - 473
Shell Pakistan Limited Unrated Unrated 257,202 272,562 102,379 215,869
Siemens (Pakistan) Engineering Company Ltd. Unrated Unrated 200,000 200,000 220,000 175,000
Sitara Chemicals Industries Limited Unrated Unrated 118,894 118,894 12,722 16,823
Soneri Bank Limited Unrated AA- - - - -
Southern Electric power Unrated Unrated 111,148 - 661 -
Standard Chartered Modarba Ist Unrated AA+ 1,268,956 1,153,597 19,288 24,918
Sui Northern Gas Pipeline Company Limited Unrated AA- 6,426,429 5,842,209 420,931 397,270
Sui Southern Gas Pipeline Company Limited Unrated Unrated - 758,694 - 20,295
Sunshine Cloth Mills Unrated Unrated 150,000 150,000 - -
Sunshine Cotton Mills Limited Unrated Unrated 281,250 281,250 - -
SME Leasing BBB+ Unrated 1,230,477 - 13,535 -
Taj Textile Mills Limited Unrated Unrated 44,775 375 123 1
TRG Pakistan Limited Unrated Unrated - 6,773,000 - 89,742
Twakkal Garments Industries Limited Unrated Unrated 112,500 112,500 - -
Unilever (Pakistan) Limited Unrated Unrated
(Face value: Rs.50 each) Unrated Unrated 139,740 140,000 279,478 248,500
Unity Modaraba Unrated Unrated 1,000,000 100,000 - -
World Call Telecom Unrated A+ 1,081,259 - 11,624 -
Yousuf Weaving Mills Unrated Unrated 21,711 - 119 -
Total 2,911,840 3,590,217
3,239,949 3,771,813
All shares have a face value of Rs.10 each unless otherwise mentioned.
Cost of the above held-for-trading and available-for-sale investments amounted to Rs.331 million (2005: Rs.184 million) and Rs. 1,426 (2005: Rs. 1,306
million) respectively.
1.2.2 Particulars of Investment hled in un-listed companies
1.2.2.1 Ordinary Shares - Holding 10%

Percentage No. of Cont of Investment Break-up Based on Name of
Investee Rating of holding Shares 2006 2005 value of accounts Chief Executive
JCR-VIS PACRA held Rupees in ‘000 investment as at
Avari Hotel Limited Unrated Unrated 12.7% 9,459,200 - 94,592 (6,338) June 30,2000 Mr. Byram D Avari
Digri Sugar Mills Limited Unrated Unrated 19.1% 2,000,000 4,063 4,063 8,126 Sep 30,1999 Mr. Naveed Ahmad Javeri
Engine System Unrated Unrated 16.5% 788,500 - - (10,132) June 30,1998 Mr. Javed Burki
First Women Bank Limited Unrated Unrated 10.6% 2,532,000 21,100 21,100 62,667 Dec. 31. 2005 Ms. Zareen Aziz
Gelcaps Pakistan Limited Unrated Unrated 14.6% 2,000,000 4,665 4,665 25,340 30-Jun-06 Mr. Sadruddin Hashwani
Intech International Unrated Unrated 18.6% 275,000 - - Mr. Hassan Zaidi
Investment Corporation of Pakistan
(Face value: Rs.100 each) Unrated Unrated 19.9% 398,000 - 36,337 262,317 June 30,2005 Mr. Tariq Iqbal Khan
Pakistan Agriculture Storage Service Corp.
(Face value: Rs.1,000 each) Unrated Unrated 18.3% 5,500 5,500 5,500 109,831 March 31,2003 Maj. Gen. Fahim Akhter Khan
Precision Engineering Unrated Unrated 16.8% 15,100 - - Mr. Zaheer Hussain
Resources and Engineering Management Unrated Unrated 10.0% 66,125 - - (484,696) June 30,2005 Mr. Shafaat Ahmed
Corporation
Safa Rice Mills Limited Unrated Unrated 15.8% 450,000 - -
Sigma Knitting Mills Unrated Unrated 14.1% 500,000 - - (6,793) June 30,1999 Mr. Pervaiz Alam
Pakistan Textile City Unrated Unrated 5,000,000 50,000 50,000 50,650 June 30,2006 Mr. Nasir Sadruddin
85,328 216,257
1.2.2.2 Ordinary Shares - Holding below 10%

No. of Cont of Investment Break-up Based on Name of
Investee Rating Shares 2006 2005 value of accounts Chief Executive
JCR-VIS PACRA held Rupees in ‘000 investment as at
Al Ameen Textile Unrated Unrated 32,800 328 328 Not available

Al Zamin Modarba Management A- Unrated 140,000 1,000 1,000 2,048 June 30, 2006 Mr. Bashir A. Chaudhry
Arabian Sea Country Club Unrated Unrated 650,000 - - 4,067 June 30, 2002 Mr. Aslam Mohsin ali
Attock Textile Mills Limited Unrated Unrated 100,000 948 1,000 (1,412) Sept. 30, 1998 Mr. Arshad Ali Chaudhry
Brikks Pvt Limited Unrated Unrated 39,050 - - Not available
Equity Participation Fund Unrated Unrated 28,000 2,800 2,800 15,410 June 30, 2006 Mr. Muhammad Akhter
(Face value: Rs.100 each)
F.T.C. Management Unrated Unrated 50,000 250 250 366 June 30, 2005 Mr. Rehan-ul Ambia Riaz
Fauji Oil Terminals Unrated Unrated 1,088,600 10,886 10,886 22,541 June 30, 2006 Col ( R) Ali Abbas
Fortune Securities Limited Unrated Unrated 500,000 5,000 5,000 4,917 June 30, 2006 Mr. Kamran Ahmed Khalili
Frontier Textile Mills Limited Unrated Unrated 50,000 500 500 272 Sep. 30, 2002 Not available
Gulistan Power Generation Limited Unrated Unrated 220,000 2,200 2,200 8,096 June 30, 2000 Mr. Abdul Shakoor
Hazara Woolen Mills Limited Unrated Unrated 20,000 200 200 Not available
Insecta Pakistan Limited Unrated Unrated 50,000 - - 315 June 30,1997 Mr. Syed Tauqeer Haider
Indus Sugar Unrated Unrated 594,807 5,948 5,948 (4,829) Sep 30,2003 Not available
Kashmir Textile Unrated Unrated 82,500 825 - Not available
Kronos Corporation Unrated Unrated - - - Not available
Kaytex Mills Limited Unrated Unrated 377,800 3,778 3,778 Not available
Mohib Textile Mills Limited Unrated Unrated 125,600 - - Not available
Muslim Ghee Mills Limited Unrated Unrated 181,000 1,810 - Not available
Myfip Video Industries Unrated Unrated 537,300 5,373 - Not available
National Construction Limited Unrated Unrated 50,000 250 - 597 June 30, 2005 Mr. Ali Mohammad Shaikh
National Fulltraton Asset Management Co. Ltd Unrated Unrated - - - Not available
National Institute of Banking and Finance Unrated Unrated 200,000 20,000 - 3,481 June 30, 2006 Mr. Kazi Abdul Muktadir
National Film Development Corporation Limited Unrated Unrated 10,000 - - (1,827) June 30, 2000 Mr. Sajjad Haider
National Industry Cooperative Bank of Gujrat Unrated Unrated 10 - - Not available
National Institution of Facilitation Technology (Pvt) Ltd Unrated Unrated 353,029 1,526 1,526 19,867 June 30, 2006 Mr. M. M. Khan
National Investment Trust Unrated Unrated 52,800 100 100 130,081 June 30, 2006 Mr. Tariq Iqbal Khan
National Woolen Mills Limited Unrated Unrated 18,300 183 183 Not available
Newyork Poly Clinic of Karachi Unrated Unrated 220,133 - - (241) June 30,1998 Mr. Akhter Aziz khan
Nowshehra Engineering Works Limited Unrated Unrated 4,950 41 41 Not available
Pakistan Paper Corporation Limited Unrated Unrated 37,250 373 373 Not available
Pakistan Tourism Development Corporation Unrated Unrated 100,000 100 100 24,983 June 30,1996 Not available
Pakistan Export Finance Guarantee Agency Limited Unrated Unrated 1,152,938 11,529 11,529 79,281 2004
People Steel Mills Limited Unrated Unrated 1,076,880 3,276 3,276 Not available
Phalia Sugar Mills Limited Unrated Unrated 1,087,949 - 3,111 Not available
Qadri Textile Mills Limited Unrated Unrated 50,000 500 - Not available
Refrigerator Manufacturing Company Limited Unrated Unrated 45,737 4,589 4,589 Not available
Rousch Power Pakistan Limited Unrated Unrated 39,729,000 132,888 132,888 5,799 June 30,2006 Mr. Naseem Akhter
Ruby Rice and General Mills Limited Unrated Unrated 75,000 750 750 Not available
SARF Unrated Unrated 5,000 287 287 Not available
Shoaib Capital Unrated Unrated 100,000 272 272 544 Dec 31,04 Mr. Kandia Balendra
SME Bank Limited BBB Unrated 4,590,936 26,950 26,950 72,032 June 30,2000 Not available
Star Salica Industries Limited Unrated Unrated 26,650 267 267 June 30, 2006 Mr. Mansur Khan
Sunshine Cloth Mills Unrated Unrated 150,000 - - Not available
Transmobile Limited Unrated Unrated 644,508 - - (44) June 30,1997 Mr. Javed Burki
Zafar Textiles Mills Ltd. Unrated Unrated 247,100 256 256 Not available
Zulsham Engineering Works Limited Unrated Unrated 3,300 330 330 Not available
246,313 217,607
331,641 433,864
All shares have a face value of Rs.10 unless otherwise mentioned.

1.3 Particulars of Investments held in units of mutual funds

Investee Rating
No. of shares/certifcates held
Market Value
JCR-VIS PACRA 2006 2005 2006 2005
Listed Rupees in ‘000
ABAMCO Composite Fund Unrated Unrated - 2,500,000 - 23,875

ABAMCO Stock Market Fund Unrated Unrated - 131,003 - 2,103
AKD Index Tracker Fund Unrated Unrated 4,159,350 4,159,350 41,178 38,058
Askari Income Fund Unrated Unrated 495,540 - 52,616 -
Atlas Income Fund Unrated 5-Star 50,000 50,000 26,220 26,297
Atlas Islamic Fund Unrated Unrated 100,000 - 50,000 -
Atlas Stock Market Fund Unrated 5-Star 100,000 - 55,288 -
BSJS Balanced Fund Unrated 5-Star 1,237,500 1,237,500 14,108 16,706
Faysal Balance Growth Fund 3-Star Unrated 694,353 500,000 69,970 63,175
First Dawood Mutual Fund Unrated 4-Star 5,262,059 4,575,704 33,414 42,783
Meezan Balanced Fund Unrated 4-Star 5,000,000 - 43,000 -
Meezan Islamic Fund-Type-A Series
(nominal value: Rs.50 each) 5-Star 5-Star 1,475,772 1,000,400 89,638 75,300
NAFA Cash Fund A(f) Unrated 12,500,000 - 131,500 -
NAFA Multi Asset Fund Unrated Unrated 7,500,000 - 75,000 -
NAFA Stock Fund Unrated Unrated 7,500,000 - 75,000 -
NAMCO Balanced Fund Unrated Unrated 2,000,000 - 20,000 -
Pakistan Capital Market Fund Unrated 3-Star 4,628,163 4,575,500 52,992 67,854
Pakistan International Element Islamic Fund Unrated Unrated 300,000 - 14,361 -
Pakistan Premier Fund Unrated 4-Star 129,525 - 1,684
Pakistan Strategic Allocation Fund Unrated 4-Star 2,500,000 2,500,000 21,250 29,250
PICIC Energy Fund Unrated Unrated 1,380,520 1,500,000 10,630 -
PICIC Growth Fund
(formerly: Investment Corporation of Pakistan - SEMF) 4-Star Unrated 7,703,051 7,168,875 216,841 355,576
PICIC Investment Fund 3-Star Unrated 137,277 - 1,991 -
Reliance Income Fund Unrated Unrated 300,000 - 15,312 -
UTP Growth Fund Unrated Unrated 352,754 - 4,586 -
UTP Large Capital Fund Unrated 4-Star 2,500,000 - 20,000 -
J.S. ABAMCO Limited (Formerly UTP ABAMCO Limited)
(nominal value: Rs.5,000 each) Unrated AM 2+ 26,427 15,000 194,687 121,860
68,032,291 29,913,332 1,331,266 862,837

Cost of the above investment amounted to Rs. 1,028 million ( 2005: Rs. 582 million)
Unlisted:
Atlas Stock Market Fund Unrated 5-Star 100,000 100,000 - 62,882

Meezan Balanced Fund Unrated 4-Star 5,000,000 5,000,000 - 48,750
- 111,632
1,331,266 974,469
All certificate have a nominal value of Rs. 10 per unit unless otherwise mentioned
1.4 Particular of Investments held in preference shares
Rating
Cumulative Rate No. of certificate held
non- Market Value
JCRVIS PACRA 2006 2005 2006 2005
cummlative
Rupees in ‘000
Listed:
Chenab Limited Unrated Unrated Cumulative 9.25% 10,000,000 10,000,000 71,500 90,700
Cost of the above investment

amounted to Rs.100 million
(2005: Rs.100 million)
Unlisted:
Dalda Food Unrated Unrated Cumulative 8.75% 9,300,000 9,300,000 93,000 93,000
Jamshoro Joint Venture limited Unrated Unrated Cumulative 15.00% 2,500,000 2,500,000 25,000 25,000
Pak Elektron Limited Unrated Unrated Cumulative 9.50% 10,000,000 10,000,000 100,000 100,000
South Asia Regional Fund
(Face value: USD 1 each) Unrated Unrated Cumulative 8.00% 3 1,093 184 65,500
Masood Textile Mills Unrated Unrated Floating 12.65% 10,000,000 10,000,000 50,000 50,000
268,184 333,500
339,684 424,200
1.5 Debentures, Bonds, Participation Term Certificates and Term finance certificate
1.5.1 Term finance certificate

Investee Rate of Profit Maturity Long Term No. of certificate held Market Value/cent
Interest Payment Rating
2006 2005 2006 2005
Al - Zamin Leasing Modoraba * 9.5% Half yearly 2.06.2008 BBB+ 1,902 1,902 9,510 9,510
Azgard Nine Ltd * 11.45% Half yearly 17.8.2012 A 20,000 20,000 99,960 100,000
6 month Kibor + 2.4 %
Bank Al-Habib Limited * 10.55% Half yearly 28.06.2012 AA 39,984 39,984 199,840 199,920
Sui Southern Gas Company Limited * 13.00% Half yearly 26.05.2006 Unrated - 4,540 - 24,288
3-5 year discount rate 9% + 1.1%
Soneri Bank Limited * 10.65% Half yearly 31.3.2013 AA 26,995 26,995 134,919 134,973
United Bank Limited * 10.39% Half yearly 16.06.2012 AA 16,903 16,903 84,480 84,513
8 year PIB Reuter Page PKRV@8.62%
12.07%
Sitara Chemical Industries Limited SUKUK * 3 month Kibor + 2.5% Quarterly 30.06.2011 AA- 80,000 - 456,000 -
12.65%
Financial Receivable Securitization Co. Ltd. * 6 month Kibor + 2% Half yearly 27.12.2013 AA- 5,000 - 25,000 -
1,009,709 553,204
Term finance certificate - Unlisted Profit Maturity Long Term No. of certificate held
Rate of
Payment Rating Market Value/cent
Interest
2006 2005 2006 2005
Investee
Rupees in ‘000
Ados Pakistan Limited - - - Unrated - - - -

Agro Dairies Limited 22.00% Overdue Overdue Unrated 20 20 4,237 4,237
Al-Azhar Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 5,168 5,168
Al-Faham Textile Mills Limited 22.00% Overdue Overdue Unrated - 14 - 1.907
Al-Qaim Textile Mills Limited 22.00% Overdue Overdue Unrated 16 16 357 357
Apex Fabrics Limited 22.00% Overdue Overdue Unrated 16 16 2,640 2,640
Aqma Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 4,160 4,466
Aruj Textile Mills Limited 22.00% Overdue Overdue Unrated 5 5 - 493
Aswan Tentage & Canvas Mills Limited 22.00% Overdue Overdue Unrated 1 1 3,643 3,643
Azeem Tapes (Pvt) Limited 22.00% Overdue Overdue Unrated 34 34 2,279 2,582
Bachani Sugar Mills Limited 22.00% Overdue Overdue Unrated 28 28 35,896 35,896
Baluchistan Cotres Limited 22.00% Overdue Overdue Unrated 22 22 2,745 2,745
Bankers Equity Limited 22.00% Overdue Overdue Unrated 10 10 104,449 104,449
Bela Chemical Limited 22.00% Overdue Overdue Unrated 24 24 24,595 24,595
Bentonite Pak Limited 22.00% Overdue Overdue Unrated 31 31 3,417 3,417
Blue Star Spinning Mills Limited 22.00% Overdue Overdue Unrated 17 17 2,252 2,252
Bosicor Pakistan Ltd * 13.00% Half yearly 12.2.2010 Unrated 20 20 86,190 100,000
6 month Kibor + 6.79 % -
Brother Steel Limited 22.00% Overdue Overdue Unrated 17 17 3,094 3,094
Cast-N-Link Product Limited 22.00% Overdue Overdue Unrated 16 16 2,549 2,549
Chaudhry Wire Rope Industries Limited 22.00% Overdue Overdue Unrated 14 14 1,565 1,565
Chiniot Textile Mills Limited 22.00% Overdue Overdue Unrated 6 6 1,185 1,185
Chiragh Sun Engg Limited 22.00% Overdue Overdue Unrated 6 6 1,865 2,486
Dadabhoy Cement Limited - - - Unrated - - - -
Danneman Fabrics Limited 22.00% Overdue Overdue Unrated 14 14 3,283 4,584
Dawood Leasing Company Limited * 10.75% Half yearly 07.09.2006 Unrated - 5,000 - 25,000
Discount Rate 9% + 1.75% -
Faruki Pulp Mills Limited 22.00% Overdue Overdue Unrated 14 14 17,550 17,550
Frontier Ceramics Limited 22.00% Overdue Overdue Unrated 46 46 3,517 3,563
General Diaries & Food Limited 22.00% Overdue Overdue Unrated 6 6 1,350 1,350
Glorex Textile Mills Limited 22.00% Overdue Overdue Unrated 1 1 927 924
Gulistan Textile Mills Limited * 14.00% Half yearly 29.08.2006 Unrated - 3,331 - 16,653
SBP Discount Rate + 2% -
Gypsum Corporation Limited 22.00% Overdue Overdue Unrated 10 10 900 900
Hospitex International Limited 22.00% Overdue Overdue Unrated 16 16 511 511
Hub Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 - 3,887
Indus Sugar Mills 22.00% Overdue Overdue Unrated - - 1,015 10,390
Jamshoro Joint Venture -
(Face value of Rs. 5,000,000) * 9.94% Half yearly 15.4.2009 Unrated 9 9 28,125 39,375
PIB 5 year latest cut off yield -
Jahangir Siddiqui & Company Limited * 10.55% Half yearly 17.05.2014 AB+ 39,960 39,976 199,800 199,880
Javedan Cement Ltd. * 13.15% Half yearly 22.08.2011 Unrated - - 1,400,000 -
Balance carried forward 1,949,264 632,390
Term finance certificate - unlisted
Profit Maturity Long Term No. of certificate held

Rate of
Payment Rating Market Value/cent
Interest
2006 2005 2006 2005
Investee Rupees in ‘000
Balance forward 1,949,264 632,390

Kamal Ghee & Allied Industries Limited 22.00% Overdue Overdue Unrated 14 14 4,238 4,238
Kashmir Polytex Limited 22.00% Overdue Overdue Unrated 16 16 1,483 1,483
Khairpur Sugar Mills Limited 22.00% Overdue Overdue Unrated 28 28 5,128 5,128
Kiran Sugar Mills Limited 22.00% Overdue Overdue Unrated 24 24 8,706 10,914
Larr Sugar Mills Limited 22.00% Overdue Overdue Unrated 14 14 9,929 12,688
Latif Bawany Textile Mills Limited 22.00% Overdue Overdue Unrated 38 38 2,380 2,380
Malik Food Industries Limited 22.00% Overdue Overdue Unrated 11 11 2,472 2,472
Minaco Fabrics Limited 22.00% Overdue Overdue Unrated 14 14 7,350 7,350
Munalisa Fruit Juices - - - Unrated 2 14 1,500 -
Mumtaz Shahbaz Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 - 1,500
Munawar Engineering Company Limited 22.00% Overdue Overdue Unrated 28 28 2,043 2,043
Munro & Millar Mills Limited 22.00% Overdue Overdue Unrated 20 20 1,113 1,113
National Fructose Company Limited 22.00% Overdue Overdue Unrated 14 14 1,450 1,450
National Tiles & Ceramics Limited * 22.00% Overdue Overdue Unrated 16 16 - 941
National Tiles & Ceramics Limited 22.00%
Nishat Mills Limited 9.84% Half yearly 29.08.2008 Unrated 149,880 149,940 599,400 749,400
Weighted Average of last 3 cut off rate 6 month T-Bills 8.1388% + 1.7% 38 38
Novelty Fabric Processing Limited 22.00% Overdue Overdue Unrated 14 14 12,896 13,870
Pak Pattan Dairies Limited 22.00% Overdue Overdue Unrated 647,424 682,473 2,954 3,146
Pakistan International Airlines Corp. Ltd * 10.00% Half yearly 26.02.2011 Unrated 1 1 3,237,371 3,412,364
SBP Discount Rate + 50 bps
Pakistan Laminates Limited 22.00% Oerdue Overdue Unrated 19,074 28,611 95 95
Pakistan Services Limited * 11.75% Half yearly 16.09.2008 A 26 26 95,371 143,057
BR + 2.5% SBP Discount Rate 9%
Dewan Cement (Pakland Cement) * 11.55% Half yearly 15.7.2013 Unrated 16 16 261,172 313,052
Pangrio Sugar Mills Limited 22.00% Overdue Overdue Unrated 16 16 1,683 2,057
Pirjee Weaving Mills Limited 22.00% Overdue Overdue Unrated 21,991 21,996 403 857
Prime Commercial Bank Limited * 12.55% Half yearly 08.12.2012 A+ 150.000 - 109,956 109,978
Pak Kuwait Investment Ltd. F * 11.82% Quertarly 22.02.2011 AAA 100.000 - 750,000 -
Pak Kuwait Investment Ltd. G * 11.82% Quertarly 22.02.2011 AAA 20 20 500,000 -
Prometals Limited 22.00% Overdue Overdue Unrated 2 2 - 763
Qand Ghar (Pvt) Limited 22.00% Overdue Overdue Unrated 14 14 2,706 2,706
Qand Ghar Sugar Mills Limited 22.00% Overdue Overdue Unrated 6 6 7,915 7,915
Rai Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 - 510
Raja Weaving Mills Limited Overdue Overdue Unrated 24 24 3,831 3,831
Regency Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 6,081 6,081
Rehman Sharif Textile Mills Limited 22.00% Overdue Overdue Unrated 120 - 702 973
Reliance Pak Arab fartilizar Co.Ltd * 13.15% Half yearly 13.7.2013 Unrated 26 26 1,200,000 1,200,000
(Face value of Rs. 10,000,000) 6 month Kibor + 2.5 %
Dewan Hattar Cement (Saadi Cement) * 11.55% Half yearly 15.7.2013 A 32 32 810,461 972,037
Sarela Cement Limited 22.00% Overdue Overdue Unrated 17 17 6,749 6,748
Scan Recycling (Pak) Limited 22.00% Overdue Overdue Unrated 24 24 774 774
Seri Sugar Mills Limited 22.00% Overdue Overdue Unrated 26 26 5,423 5,423
Shah Jewana Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 104 104
Shazeb Industries Limited 22.00% Overdue Overdue Unrated 13 13 2,202 2,202
Sialkot Dairies 22.00% Overdue Overdue Unrated 6 6 2,320 2,320
Silverland Textile Mills Limited 22.00% Overdue Overdue Unrated 15 15 1,650 1,650
Sind Textile Industries 22.00% Overdue Overdue Unrated 2 2 7,445 7,445
Sinsas Enterprises Limited 22.00% Overdue Overdue Unrated 16 16 4,302 4,302
Star Silica International 22.00% Overdue Overdue Unrated 28 28 1,799 1,799
Sunflo Juices Limited 22.00% Overdue Overdue Unrated 36 36 748 7,686
Taj Syringes (Pvt) Limited 22.00% Overdue Overdue Unrated 22 22 4,917 5,606
Tanocraft Limited 22.00% Overdue Overdue Unrated 16 16 1,315 1,315
Tawakkal Garments Industries Limited 22.00% Overdue Overdue Unrated 5 5 759 759
Tharparkar Sugar Mills Limited 22.00% Overdue Overdue Unrated 2 2 23,332 23,332
Trubo Tubes Limited 22.00% Overdue Overdue Unrated 16 16 122 122
Ultra Engineering Industries Limited 22.00% Overdue Overdue Unrated 38 38 1,211 1,211
Waleed Leather Industries Limited 22.00% Overdue Overdue Unrated 14 14 2,196 2,196
Zamir Textile Mills Limited 22.00% Overdue Overdue Unrated 7,516 7,516
Zaver Petroleum Ltd. 13.90% - -
6 month kibor + 3.25% Half yearly 10.07.2011 Unrated 10.000 - 50,000 -
9,724,937 7,713,196
* Cost of the above TFCs amounted to Rs. 10,231 million (2005: Rs. 6,547 million)
1.5.2 Debentures
Terms of Redemption Rate of 2006 2005

Principal Interest Interest Cost
Rupees in ‘000
Investee
Aaj Textile Mills Limited Outstanding Outstanding 14% 1,005 1,005

Aaj Textile Mills Limited Outstanding Outstanding 12.5% 270 270
Ajax Industries Limited Overdue Overdue 11% 1,397 1,397
Ajax Industries Limited Overdue Overdue 14% 269 269
Ali Asbestose Industries Limited Overdue Overdue 14% 175 175
Ali Asbestose Industries Limited Overdue Overdue 11% 1,510 1,510
Alleey Hosiery Mills Limited - - - - -
Allied Ghee Industries Limited Overdue Overdue 14% 1,141 1,141
Allied Ghee Industries Limited Overdue Overdue Interest free 572 572
Allied Marbles Industries Overdue Overdue 14% 23 23
Allied Marbles Industries Overdue Overdue Interest free 15 15
*
Aslo Electrical Industries Outstanding Outstanding 11% 2,270 2,270
Aslo Electrical Industries Outstanding Outstanding 14% 6 6
Attock Textile Mills Limited Regular Regular 14% - 432
Azad Kashmir Mineral Development Corporation Overdue Overdue 12% 3,286 3,286
Azad Kashmir Mineral Development Corporation Overdue Overdue 12.5% 2,336 2,336
Carbon Dioxide Limited Outstanding Outstanding 11% 495 495
*
Chillya Corrugated Board Overdue Overdue 14% 318 318
Colony Textile Mills Limited Outstanding Outstanding Interest free - 184
Consolidated Spinning & Textile Mills Limited Overdue Overdue 14% 180 180
Consolidated Sugar Mills * Overdue Overdue 14% 1,875 1,875
Daaman Oil Mills Overdue Overdue 14% 204 204
Effef Industries Limited Overdue Overdue 14% 1,799 1,799
Effef Industries Limited Overdue Not Applicable Interest free 3,828 3,828
Electric Lamp Manufacturing Outstanding Outstanding 11% 75 75
Electric Lamp Manufacturing Overdue Overdue 14% 150 150
*
Hassan Tanneries Limited Outstanding Outstanding 14% 437 437
Hassan Tanneries Limited * Outstanding Outstanding 12.5% 58 58
Hazara Woolen Mills. * Overdue Overdue 14% 1,148 1,148
Hydri Gas Limited Outstanding Outstanding 11% 47 47
Junaid Cotton Mills Limited Overdue Overdue 12.5% 165 165
Junaid Cotton Mills Limited Overdue Overdue 14% 470 990
Karachi Development Authority Overdue Overdue 12.5% 156,034 156,034
Khyber Textile Mills Limited Overdue Overdue 14% 1,000 1,000
Lahore Dyeing & Printing Mill Outstanding Outstanding 11% 1,013 1,013
Lahore Engineering Foundary Works Regular Regular 5% - 1,160
Mansoor Textile Mills Overdue Overdue 14% 510 510
Morgah Valley Limited Overdue Overdue 11% 400 400
National Woolen Mills Overdue Overdue 14% 66 134
Pakistan Paper Corporation Overdue Overdue 11% 506 506
Pakistan Polypropylene Packages Limited Outstanding Outstanding 14% - 2
Progressive Tobacco Co. Overdue Overdue 14% 144 144
Qadri Textile Mills Limited Overdue Overdue 14% 489 489
Regal Ceramics Limited Overdue Overdue 14% 105 105
Rising Sun Knitwear Industries Overdue Overdue 14% 57 57
Rose Textile Mills Limited Overdue Overdue 14% 740 740
Saleem Tanneries Project 1 Overdue Overdue 12.5% 1,302 1,302
Sarhad Bricks Limited Overdue Overdue 11% 543 543

Rupees in ‘000
Investee

SDA-A/C Cold Storage Haripur -1 Overdue Overdue 12% 955 955
SDA-A/C Cold Storage Haripur -2 Overdue Overdue 12.5% 1,170 1,170
SDA-A/C Cold Storage Mardan -1 Regular Regular 12% 204 1,278
SDA-A/C Cold Storage Mardan -2 Regular Regular 12.5% 108 878
Shafaq Lamp Manufacturing Corporation Overdue Overdue 11% 368 368
Shahdin Limited Overdue Overdue 14% 163 163
Shahyar Textile Mills Limited Overdue Overdue 14% 280 280
Spinzer Towel Industries Limited Oustanding Oustanding 12.5% 200 200
Spinzer Towel Industries Limited Oustanding Oustanding 14% 175 175
Sun Publications Limited Overdue Overdue 13.5% 178 178
Zulsham Engineering Works Limited Overdue Overdue 14% 236 236
194,956 199,168
1.5.3 Participation Term Certificate
Number of Rate of Paid -up value 2006 2005

certificate (s) interest per certificate Cost
Rupees
Rupees in ‘000
Investee
Ali Paper Industries Limited 13 17% 261,000 3,393 3,393
Alipure Jute Mills Limited 53 17% 172,113 7,081 7,081
American Marbals Limited 12 17% 104,167 1,250 1,250
Azmat Oil Industries Limited 1 17% 226,000 226 226
Annis Garments Limited 12 17% 32,917 395 395
Bhawalpur Board Mills Limited 14 17% 137,000 1,918 1,918
Balochistan Clay Products 17 17% 227,176 2,504 2,504
Bela Chemicals limited 1 17% 10,500,000 10,500 10,500
Bela Ghee Mills Limited 14 17% 191,214 1,066 1,066
Calcium Limited 1 17% 300,000 300 300
Cotex Industries Limited 14 17% 16,357 229 229
Crystal Chemicals Limited 15 17% 259,800 3,897 3,897
Dadabhoy Cement Limited 1 17% 11,601,000 10,863 11,601
Delta Tyre & Rubber Co. 7 17% 268,714 1,881 1,881
Frontier Ceramics Limited 10 17% 226,200 2,262 2,262
Gem Industries Limited 12 17% 126,417 1,518 1,517
Gypsum Corporation Limited 32 17% 32,594 1,043 1,043
Ittehad Industries Limited 1 17% 600,000 451 451
Jubilee Paper Board Mills 16 17% 431,938 6,761 6,761
Kamal Enterprises Limited 17 17% 64,294 1,093 1,093
Khalil Jute Mills Limited 16 17% 138,875 0 577
Khattak Edible Oil Limited 15 17% 82,467 1,237 1,237
Leatherite Limited 14 17% 69,643 727 727
Mass Dairies Limited 11 17% 229,364 2,523 2,523
Meditex International Limited 15 17% 87,800 508 508
Morgah Valley Limited 16 17% 29,250 468 468
National Fructose Limited 11 17% 550,818 6,060 6,060
Pak Belt Industries Limited 13 17% 94,692 757 757
Pangrio Sugar Mills Limited 29 17% 442,586 11,551 12,835
Punjab Building Products 12 17% 121,500 1,458 1,458
Punjab Cables Mills Limited 12 17% 388,667 3,833 3,833
Rainbow Packages Limited 23 17% 122,174 2,223 2,223
Balance Carried forward 89,976 92,571
Participation Term Certificate

Rupees
Rupees in ‘000
Investee
Balance brought forward 11 17% 89,976 92,571
Sampak Paper Board Mills 35 17% 14,909 165 165
Sarela Cement Limited 15 17% 406,629 14,232 14,232
Sethi Industries Limited 11 17% 240,667 3,260 3,522
Shafi Woolen Industries Limited 17 17% 89,455 490 489
Sindh Glass Industries Limited 15 17% 598,765 9,457 9,457
Star Silica Industries Limited 13 17% 137,467 1,803 1,803
Suhail Jute Mills Limited 15 17% 80,769 673 673
United Wood (Veener) Limited 13 17% 51,000 727 727
Waziristan Oil Industries Limited 11 17% 88,385 1,094 1,094
Zafar Oil Industries Limited 65,455 720 720
122,597 125,458
1.5.4 Government of Pakistan Guaranteed bonds

Investee Principal Interest Interest % Cost
Rupees in ‘000
WAPDA Bonds (9th issue) Bi-annual Bi-annual 11.00% - 720,003

Rice Export Corporation of Pakistan - Bonds Annual Bi-annual Average of last six 575,420 918,861
months FIB rates (15%)
Ghee Corporation of Pakistan - Bonds Annual Bi-annual Average of last six 380,000 570,000
Trading Corporation of Pakistan - Bonds Annual Bi-annual months FIB rates (15%)
Average of last six 309,153 463,775
Saindak Metals Limited - Bonds Annual Bi-annual months FIB rates (15%)
Saindak Metals Limited - Bonds Annual Bi-annual 15% 254,485 508,969
Average of last six - 725,972
Shahnawaz Bhutto Sugar Mills Lumpsum Lumpsum months KIBOR rates
Public Sector Enterprizes Lumpsum Lumpsum 6% 16,762 15,813
11% 12,167 23,272
1,547,987 3,946,665
11,590,477 11,984,488
1.5.5 OTHER GOVERNMENT BOND INVESTMENT

Rupees in ‘000
CIRC Bond Regular Regular Six months T Bill 11,242 11,242

auction rate on
the day precceding
the date of
payment of return
8.8142%
11,242 11,242
STATEMENT SHOWING WRITTEN-OFF LOANS OR ANY OTHER
FINANCIAL RELIEF OF FIVE HUNDRED THOUSAND RUPEES OR Annexure - II as referred
ABOVE PROVIDED DURING THE PERIOD 01.01.2006 TO 31.12.2006 to in Note 10.6 to the Financial Statements
(Rupees in Million)
Outstanding liabilities at
Sr. Name & Address of Name of Father’s / Husband’s beginning of year Principal Interest/ Other financial Total
No. the borrower Individuals/Partners/ Name Principle Interest/ Others Total written off. Mark-up relief provided (9+10+11)
Director with NIC mark-up written off.
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
1 Yasrab Cotton Syed Abdul Aziz Shah Abdul Ghafoor Shah 1.950 0.350 0.000 2.300 0.000 2.606 1.271 0.000 3.877
Factory * 31202-3635490-9
Jhangiwali Road, M. Tahir Aziz Shah Abdul Aziz
Bahawalpur 31202-3625895-9
Irfan Aziz Shah Abdul Aziz
31202-0250777-9
Tahira Aziz, Mrs. W/o Wasim A. Qureshi
31202-3028767-0
Kanwal Aziz, M/s W/o Syed Amjad Bashir
31202-0939512-4
Manzoor Ahmed
31202-0258446-1
Ayyaz Mehmood S. M. Manzoor Ahmed
31202-3968731-5
2 Popular Textile M. Hussain Virik . Noor Muhammad 1.252 0.851 0.000 2.103 0.413 0.000 0.417 0.434 1.264
Industries (Pvt) Ltd, * 42101-6489751-7.
Chak No.211/RB, Suleman Ahmad Virik M. Hussain Vrik
Humayun-Abad 42101-0521832-3.
Jaranwala Road Fsd. Imran Ahmad Virik M. Hussain Vrik
261-Panaroma 42101-4263704-7.
Center, Fatima Jinnah
Road, Karachi.
3 Bhatti Brotheran Abdul Sattar Shahrah Bhatti 1.752 2.721 0.177 4.650 0.289 0.182 2.222 0.494 3.187
Cotton Ginning 33106-4224145-9
Pressing & Oil Muhammad Yar Shahrah Bhatti
Factory*
514/GB Teh: Mst. Zohra W/o Shahrah Bhatti
Tandianwala
Distt: Faisalabad
4 Kamal-ud-Din Kamal-ud-Din Muhammad Din 0.809 0.000 0.000 0.809 0.421 0.000 1.252 0.000 1.673
H.No.1020, St. No.67, 101-85-372838
G-9/4, Islamabad
5 Muhammad Safeer M. Safeer Khan Fazal Din 0.372 0.235 0.000 0.607 0.372 0.067 0.168 0.000 0.607
Khan 82203-0482867-3
6 F.F CANS (PVT)LTD.* Fazal ur Rehman 19.024 28.102 0.690 47.816 16.781 2.662 22.557 0.000 42.000
42201-3946610-7
7 DAWN ENGG.* Mirza Pervaiz Baig Mirza Nawab Baig 3.280 2.750 0.063 6.093 1.925 0.00 0.063 0.000 1.988
42000-0380827-5
8 Lal Din Rishi & Sons Tariq Masood Rishi Lal Din Rishi 1.593 1.427 0.000 3.020 1.210 0.000 0.000 3.485 4.695
Railway Road, Gujrat Mrs.Qamar Tariq W/o Tariq Masood
Tahir Masood Rishi Lal Din Rishi
Mrs.Robina Tahir W/o Tahir Masood
Tahawar Masood Rishi Lal Din Rishi
Mrs.Yasmin Tahawar W/o Tahawar Masood
Talat Masood Rishi Lal Din Rishi
Mst.Nadia Talat Lal Din Rishi
9 National Engineering M. Aslam Bhatti 0.376 0.919 0.000 1.295 0.000 0.000 0.000 3.812 3.812
Co.* M. Akram Bhatti
M. Anwar Bhatti
Farhat D/o Muhammad Anwar
10 Fateh Sports Ltd*. Rauf Alam Janah Alam 0.090 0.000 0.028 0.118 0.000 0.000 0.000 1.807 1.807
41304-2303231-9
Aftab Alam Janah Alam
41304-9857401-9
Saeed Alam Janah Alam
41304-2303234-3
Faraz Alam Rauf Alam
41304-8084349-7
Jamila Alam Janah Alam
41304-4730956-6
Mohammad Mohsin Roshan Ali
41304-2303244-7
Muhammad Naveed Roshan Ali
41304-2303981-7
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
11 Fateh Finisher Ltd.* Rauf Alam Janah Alam 0.296 0.000 0.034 0.330 0.000 0.000 0.000 1.828 1.828
41304-2303231-9
41304-2303234-3
Roshan Ali Abbas Bhai
41304-23036243-1
12 Shahan Oil Saeed Khan Kamal Khan 3.200 0.503 0.104 3.807 2.109 0.643 0.000 9.396 12.148
44203-487846-1
Ajamal Khan Kamal Khan
44203-1272236-7
Khuda Bukhsh Kauro Khan
484-44-018908
M. Ismail Jaind Khan
484-85-031582
13 Saeed Khan* Saeed Khan Kamal Khan 7.181 0.000 0.199 7.380 3.690 1.578 0.000 18.938 24.206
44203-487846-1
44203-1272236-7
484-44-018908
484-85-031582
14 Qazi Enterprises Zardar Malik Mir Abdullah 0.200 0.044 0.002 0.246 0.194 0.002 0.048 0.558 0.802
B-67 Block-13
Fb Area Karachi
15 Sind Textiles* Syed Ali Azhar Naqvi S. Sharif Hussain Naqvi 9.435 1.547 0.360 11.342 6.745 0.360 3.877 31.602 42.584
C-41 Block-6 PECHS 101-46-323623
Dr. M. Hassan Road Mrs.Hameeda A Naqvi W/o Syed Ali Azhar Naqvi
Karachi 518-46-332608
Syed Ali Athar Naqvi S. Sharif Hussain Naqvi
514-86-136964
Syed Ali Akber Naqvi S. Sharif Hussain Naqvi
501-35-342742
Dr. M.Hassan Rd. Khi.
16 M. Azam Khan M. Azam Khan M. Akram Khan 0.496 0.531 0.011 1.038 0.496 0.011 0.052 0.479 1.038
B-29 Mebar Mabzil 42301-2352731-9
Bl-1 Scheme-5 Clifton
Karachi
17 Muhammad Sadiq Muhammad Sadiq Noor Muhammad 0.300 0.435 0.000 0.735 0.300 0.000 0.000 0.435 0.735
F#.B2 Nd Fl LSC 519-89-186252
(St-5 Row No 5 Bl-6
Gulshan Iqbal Kcy
18 Raees Ahmed Raees Ahmed Zaheeruddin 0.267 0.528 0.023 0.818 0.267 0.005 0.193 0.353 0.818
H.No.D-85, D17, 42301-1053091-1
Mehmoodabad,
No.5, Karachi
19 HPL Pharma (Pvt) M. Ziaul Hassan M. Zafarul Hassan 6.428 1.515 0.094 8.037 6.503 0.094 1.421 4.566 12.584
Ltd.*S 42301-6965562-3 Farooqui
20/2, Sec. 6/A, North M. Ehsan Farooqui
Karachi Industrial 91594-976473-3
Area, Karachi M. Sohail Hassan
20 SAK Garments* A. H. Kazim Habib Ali Khan 21.171 7.424 6.346 34.941 29.124 10.210 11.590 9.831 60.755
Plot #DP.6A, Sec.12-D, 42101-7568292-3
North Karachi Industrial
Area, Karachi
21 Classic Garments* Nazimuddin Baboo Khan 1.825 1.955 0.156 3.936 1.489 0.156 4.555 0.000 6.200
St.#8, Shah Baig 503-056-008468
Gabol Town, Block-22,
F.B. Industrial Area,
Karachi
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
22 Adamjee Garments* Abdul Ghaffar Adamjee Akbar Adamjee 74.636 30.666 0.000 105.302 61.645 24.921 5.745 146.721 239.032
9th Floor, Adamjee 42201-3940458-7
House, I.I. Chundrigar Akbar Adamjee Abdul Ghaffar Adamjee
Road, Karachi 514-85-014028
Zakia Adamjee Abdul Ghaffar Adamjee
42301-3005068-7
Adamjee Int’l* Aziz Fazal Fazal Abdullah

House,I. I. Chundrigar
Road, Karachi
Golden Velly
Trading Co.*
9th Floor, Adamjee
Road, Karachi
23 M.M. Traders* Syed Saeed Raza Zaidi Syed Saghir Raza Zaidi 2.563 0.964 0.000 3.752 1.988 9.204 0.000 0.000 11.192
B-266, Block-10, 42201-3590115-3
Gul-e-Iqbal, Karachi Syeda Saeeda Bano W/o S.M.Hassan Haider
42201-8790937-2
Sajda Bano W/o Syed Mehtab Raza
42201-5280141-6
Syed Tahir Raza Zaidi Syed Saghir Raza Zaidi
42201-3593001-3
S.M. Raza Zaidi Syed Saghir Raza Zaidi
42201-0782612-1
Ali Raza Zaidi Syed Saghir Raza Zaidi
42201-3599115-2
24 Dress Leathers* Rahat Ali, Mrs. W/o Rahat Ali Chaudhry 6.101 1.059 0.960 8.120 3.214 21.321 0.000 0.960 25.495
D-105, Zubaida 42201-5579946-2
Garden, Shah Maqsood Ahmed
Faisal Colony, Karachi Sardar Mohammad
Zareena Sarfraz, Mrs.
Razia Ahmed, Mrs.
M. Ibrahim
42201-7502820-5
25 Tropex Enterprises Ehsan Ahmed Khan Ghulam Sarwar Khan 3.500 0.678 0.000 4.178 2.429 0.000 2.050 0.000 4.479
(Pvt) Ltd. 37405-4817695-9
1012 Business Centre,
10th Floor, Mumtaz
Hassan Road, Karachi
26 Ghazi Constructions* Tanveer Hussain Hadi Hassan 0.343 0.303 0.054 0.700 0.000 1.481 0.000 0.000 1.481
C-105, Off: Kh-e- Frah Kazmi, Mst. Iqbal Kazmi
Etehad, 11th Jami Moeen Akhtar
Comm. Street,
Near Askari Comm.
Bank, Ph-VII, DHA,
Karachi .
27 Javed Iqbal Javed Iqbal Ch. Ghulam Rasool 0.227 0.944 0.000 1.171 0.227 0.000 0.944 0.000 1.171
1730/767, Mustufa 503-88-235956
Colony, Baldia Town,
Karachi
28 Bahr-Ul-Hidayat Bahr-Ul-Hidayat Abdul Bari 0.000 0.939 0.000 0.939 0.000 0.000 0.939 0.000 0.939
42201-4311881-9
29 Abdul Qudoos Abdul Qudoos Ghulam Ahmed Khan 0.389 3.024 0.417 3.830 0.000 0.417 3.024 0.000 3.441
123-25-221725
30 Al-Ahmed Kafil Ahmed Abdul Rehmen 0.000 0.939 0.000 0.939 0.000 0.000 0.504 0.435 0.939
Enterprises
31 Al-Misri Coach Ghulam Hussain Yar Hussain 0.000 2.007 0.000 2.007 0.000 0.000 2.007 0.000 2.007
42501-6313499-3
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
32 Shamsi Packages Rashid Saleem Shamsi M. Saleemuddin Shamsi 0.000 0.558 0.000 0.558 0.000 0.000 0.558 0.000 0.558
42101-5630588-3
33 Qasim Khalil Qasim Khalil Khalil Ahmed 0.283 0.478 0.031 0.792 0.283 0.031 0.478 0.000 0.792
515-91-015107
34 Misbahul Islam Misbahul Islam

515-89-049456 Abdul Majeed 0.208 0.355 0.043 0.606 0.208 0.043 0.355 0.000 0.606
35 Ali Computer Services* Syed Tahir Khurshid Syed Sarwar Hussain 0.067 0.395 0.120 0.582 0.000 0.394 0.120 0.514 1.028
25-Bahawalpur Road, 35202-2863903-3
Lahore
36 Muhammad Ashraf Khan 6.365 11.624 0.027 18.016 0.281 0.000 12.169 29.200 41.650
Ashraf Steel Pvt.Ltd.* M.Akram Khan
16-K.M.SKP. Road 35202-1740949-7 2
Lahore. M.Azam Khan Muhammad Ashraf Khan
35202-5731213-5 3
M.Akmal Khan Muhammad Ashraf Khan
35202-7542358-3
37 Maj. Muhammad Maj.Muhammad Rafique Sher Ahmed 0.129 0.374 0.080 0.583 0.129 0.047 0.407 0.000 0.583
Rafique 760-46-017817
41-SD House Badian
Road Lahore
38 M.Tehseen Butt M.Tehseen Butt Muhammad Yasin 0.614 0.655 0.041 1.310 0.252 0.041 0.614 0.000 0.907
H.No.12,ST No.10 35202-0372355-3
Nisbat Road Lahore.
39 Kashmir Chemical M. Aslam Qureshi Jalal Din 0.500 0.099 0.069 0.668 0.000 0.000 0.000 0.800 0.800
401-Circular Road Lhr. Shazia Aslam M. Aslam Qureshi
35202-4901684-9
40 Fazalur Rehman 1.268 7.541 0.297 9.106 1.162 0.000 7.838 0.000 9.000
Muslim Ghee Mills Ltd.* Muhammad Imran
Qadirabad, Distt. 35201-6517426-5
Sahiwal. Kh.Rahat Latif Kh..Abdul Latif
35201-8248179-1
Faiz Ur Rehman Fazalur Rehman Malik
35201-1520355-5
41 Rehmat Transport Allah Wasaia Hashmi Mian Sher M. Hashmi. 0.000 1.115 0.000 1.115 0.000 1.115 0.000 1.115 2.230
Services 309-38-306715
127-A DHA Amir Shahbaz Hashmi Allah Wasaia Hashmi
Lahore 309-85-306718
Mst.Tahira Fahima Khuad Bux Farooqi
271-48-121009
42 Unitec Paper Products Nusrat Hussain Siddique Iqbal Hussain 5.701 1.975 0.247 7.923 3.914 0.960 1.262 3.933 10.069
Pvt.Ltd.* 35202-2320155-1
127-A, DHA
Lahore.
43 Rehman Spezial Asad Shafiq Sh.Muhammad Shafique 1.921 2.338 0.043 4.302 1.422 0.008 2.381 3.756 7.567
Paper Products* 35201-5972183-1
Chughtai Manzil 72
Beadon Road Lahore.
44 Sana Electrodes (Pvt.) Syed Burhan Ahmed Syed Hafiz Ahmad 9.620 2.096 1.314 13.030 9.620 17.748 0.987 28.355 56.710
Ltd. 285-88-371856
R.N.9,2nd Floor Davis Muhammad Aslam Abdul Wahab
Hytes 38-Davis Road 518-49-086743
Lahore. Muhammad Akhtar Hussain Mian Qazi
502-50-640016
45 A.S. Plastic Industries Kh. Muhammad Saleem Kh. Anwar Hussain 0.017
0.325 0.109 0.451 0.325 0.000 0.000 0.521 0.846
Muslim Street No.1, 35202-7968615-9
Misri Shah, Lahore
46 M. Iftikhar Bhatty Shahid Mehmod Anayatullah Akhtar Bhatty 1.305 0.305 0.051 1.661 0.000 0.051 1.559 .0313 1.610
H. No.82, College 273-91-119801
Block Allama Iqbal
Town,Lahore
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
47 Shahid Mehmood Shahid Mehmood Muhammad Tufail 0.271 0.430 0.044 0.745 0.271 0.000 0.464 0.313 1.048
H.No.114, St. # 48, 273-91-119801
Lower Mall Behind
M.A.O. College, LHR
48 Osprey International Shahid Zafar Abbasi M. Yousaf Abasi 5.964 1.827 0 7.791 0.922 0.303 0.000 4.835 6.060
(Pvt) Ltd.* 35201-9078198-5
Mauza Gujju Matta, Mrs. Yasmin Ch. Shahid Zafar Abbasi
20 k.m. Off: Ferozepur 35201-8282134-8
Road, Lahore
49 Shalimar Engineering Mirza M. Ahmed Baig Mirza M. Usman Baig 0.450 0.346 0.047 0.843 0.000 0.000 0.000 2.284 2.284
Works 269-32-299092
406- E.G.T. Road, Mirza Shafqat Mehmood Mirza Mahmood A. Baig
Lahore 264-57-299894
50 Awais Bilal Industries Sh. Muhamamd Younas Sheikh Chiragh Din 2.888 1.030 0.355 4.273 1.761 0.000 0.000 2.212 3.973
17 k.m. Lahore 273-92-273361
Sheikhupura Road,
Lahore
51 Ali Brothers Cotton Faqir Muhammad Noor Muhammad 1.753 0.518 0.215 2.486 0.000 0.000 1.072 3.001 4.073
Factory 36601-6090247-5
Multan Road Burewala Muhammad Arshad Noor Muhammad
324-58-626461
Muhammad Akhtar Noor Muhammad
324-62-214588
Muhammad Anwar Ali Muhammad
253-45-0705509
52 New Trend Fabrics* Akhtar Hussain Ghulam Mustafa 17.386 1.826 1.182 20.394 4.494 7.531 1.755 5.233 19.013
Chak # 14/15-LVehari 36104-9906444-1
Road Mian Channu Muhammad Saleem Muhammad Sadiq
35302-1856965-1
53 Ch. Mukhtar & Sons Ch.Khushi Muhammad Aziz Ud Din 1.148 0.480 0.288 1.916 0.000 0.222 1.768 0.000 1.990
Cotton Ginners 36104-3806531-7
Chak # 121/15-L , Arfan Aziz Ch. Khushi Muhammad
Mian Channu 36104-3900486-7
Mst.Sajida Aziz D/o Khushi Muhammad
35201-9606141-6
Mst Jamila Begum W/o Khushi Muhammad
329-46-54106562
54 Rahim Textile Mills Abdul Rahim Mushtaq Ahmad 5.643 0.635 2.698 8.976 4.063 0.719 2.607 0.389 7.778
Dehli Gate Multan
55 M.H.Textile Inds.* Muhammad Anwar Ch.Muhammad Ali 0.955 0.629 0.193 1.777 0.322 0.670 0.485 1.057 2.534
Mouza Faizwah 36603-7495795-9
15 Km, Hasilpur Mst.Shahnaz Anwar W/o Muhammad Anwar
Rd. Vehari. 36603-9580703-6
56 Taj Solvex (Pvt)* Ltd. M.Islam Khokhar Rehmatullah Khokhar 25.491 7.987 1.216 34.694 21.979 4.395 4.808 28.212 59.394
Gopalpur, Bahawalpur 36302-7016300-5
Road, Multan M.Iqbal Khokhar Rehmatullah Khokhar
322-85-034974
M.Arif Khokhr Rehmatullah Khokar
36302-5865738-3
57 National Wood Tariq Iqbal Khalid Iqbal Ahmed Qureshi 7.414 11.664 4.452 23.530 2.657 0.000 11.439 4.452 18.548
Industries * 36302-0997112-5
Mouza Jungle Faizpur Zubair Iqbal Ahmed Qureshi
Bahawalpur Rd. Multan 36302-8172881-522
58 Nasir Paper Mills Muhammad Ahsan Khan Fazal Ahmad Khan 3.896 1.434 0.335 5.665 2.388 1.197 1.056 4.200 8.841
(Pvt) Ltd. * 35201-3824545-5
Chak-9/14-L, Aisha Ahsan Khan W/o M. Ahsan Khan
Chichawatni 35201-5741350-0
59 Hasina Bibi, Mst. Hasina Bibi, Mst. Saeed Ahmed Malik 0.656 0.689 0.000 1.345 0.656 0.000 0.689 0.000 1.345
St.#12, Hadieria Road, 322-59-530877
Gulgasht, Multan
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
60 M. Saleem Khan M. Saleem Khan Haji Inayatullah Khan 1.253 1.662 0.168 3.083 1.084 0.168 1.662 0.000 2.914
Khakwani House, 322-92-909929
Katchery Road, Multan
61 Muzamil Traders Muhammad Hussain Nabi Bux 4.528 0.361 0.332 5.221 3.836 0.266 0.550 5.199 9.851
(Pvt) Ltd. 325-40-417949
Karampur Road, Mailsi Muhammad Nasir Khurshid Ali
36602-1000704-3
62 Al-Tawakal Industries Haji Muhammad Yousuf Mian Nanak 0.624 0.521 0.241 1.386 0.000 0.158 0.521 0.000 0.679
Anser Colony, Multan 322-16-466230
Khushi Muhammad Haji Muhammad Yousuf
322-45-70052
Muhammad Suleman Haji Muhammad Yousuf
322-55-466232
Muhammad Saleem Haji Muhammad Yousuf
322-58-466235
63 Shakoor Industries Rao Bu Ali Qalandar Rao M. Abdul Shakoor 7.422 3.205 0.647 11.274 6.079 2.807 1.267 0.000 10.153
(Pvt) Ltd. 36602-9857508-7
10-KM Karampur Road, Rao M. Abdul Shakoor Haji Abdul Ghafoor
Mailsi, Distt: Vehari 36602-0994557-7
Rao Walliyullah Rao M. Abdul Shakoor
36602-4729292-5
64 Saeed Ahmad Malik Saeed Ahmad Malik Malik Hussain Bux 0.642 0.671 0.440 1.753 0.202 0.440 0.671 0.000 1.313
H.No.524/1, Haidria 36302-8833058-5
Road, Gali No.2,
New Gulgasht Colony,
Multan
65 Abbas Enterprises Gulrez Ahmad Awan Mukhtar Ahmad Awan 3.793 1.830 0.177 5.800 0.000 0.000 7.382 0.000 7.382
(Pvt) Ltd. 36302-9734477-3
Mouza Kothey Wala Abdul Haq Mohkam Din
Budhla Sant Road, 323-14-023259
Multan Rehana Fatima Mukhtar Ahmad Awan
36302-5716250-8
Saima Awan Zubair Ahmad
36302-0268235-8
66 Capital Packages Haji Abdul Latif Sh. Shamsuddin 6.258 3.403 0.378 10.039 5.348 0.773 2.768 8.949 17.838
Industries * 36302-0354181-7
Mouza Sujjanpur Zafar Iqbal Abdul Aziz
Khanewal Road, 322-49-423136
Multan M. Tahir Nadeem Muhammad Yaqoob
247-55-151912
67 Mangol Industries S. Rizwan-ul-Azeem Mohammad Ahmed 7.720 4.294 0.708 12.722 3.938 2.768 2.114 0.000 8.820
(Pvt) Ltd. * 36302-1932546-9
355-B Gulgasht, Iffat Jabeen W/o S. Rizwan-ul-Azam
Multan Saima Naz
S. Raza-ul-Kabir
Tahira Ahmad
68 Naeem Weaving Naeem Saif Saif Ali 1.358 0.145 0.067 1.570 1.156 0.319 0.313 2.444 4.232
Industries (Pvt) Ltd. * Mrs. Naseem Akhtar Saif Ali
Seetal Mari, Budhla Shoukat Ali Amir Ahmad
Road, Multan Arshad Ali Amir Ahmad
69 Shaheen Cotton Muhammad Yaqoob Khan Muhammad Khan 1.105 0.872 0.373 2.350 0.000 0.000 0.000 0.000 0.000
Indusries * 325-48-055330
Mauza Ojla, Multan Safdar Abbas Khan M. Yaqoob Khan
Road Mailsi Distt. 325-64-055332
Vehari Zaighum Abbas Khan M. Yaqoob Khan
325-65-055333
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
70 Madina Jute Mills Ltd. Haji Miraj Din Wahid Bux 8.233 13.625 0.219 22.077 0.000 0.000 0.000 0.000 0.000
14-Km Muzaffargarh 36302-5851964-9
M.M. Road, Khanpur Haji M. Siddique Wahid Bux
Baghasher 36302-0481976-9
Haji Wahid Bukhsh Haji Meraj Din
Muhammad Farooq
36302-0361963-5 Haji Meraj Din
Muhammad Anwar
Muhammad Hussain Hashimuddin Qureshi
36302-0482010-7
Naseeruddin Qureshi
36302-9810473-7
Muhammad Iqbal
71 Quality Weaving Sh. Abdul Hakeem Sh. Abdul Rehman 28.415 21.723 0.130 50.268 18.511 0.000 50.791 0.000 69.302
Mills Ltd. 36302-3354549-1
36-A, Industrial Estate, Sh. Abdul Hadeem Sh. Abdul Rehman
Multan 36302-0784439-1
Hakim-un-Nisa Sh. Abdul Rehman
36302-8877734-4
Bilquse Abdul Hakeem Sh. Abdul Hakeem
36302-6648015-2
Nasir Hameed Sh. Abdul Hameed
36302-7013384-0
Tahira Fahim Fahimuddin
54400-2443240-0
Najma Shafqat Shafqat Hussain
54400-3769995-2
72 Janjua Textile Mills Mian Maqbool Ahmed Mian Ghulam Nabi 4.109 0.145 0.288 4.542 3.149 0.000 0.000 0.000 3.149
(Pvt) Ltd. Mian Muhammad Saeed Mian Ghulam Nabi
Mouza 36302-8025350-5
Bakhsheeshgarh, Mian Iqbal Waheed Mian Ghulam Nabi
Mattital Road, Multan Muhammad Fayyaz Faiz Buksh
73 Indo Saigon Chullari Niranjan N.A. 2.352 0.000 0.000 2.352 2.365 0.000 0.000 0.000 2.365
Enterprises Kishanchand
Gold Coast Phase-I,
Tower2, 20th Floor,
Suite-B, 1 Castle Peak
Road, Tuen Mun New
Territories, Hong Kong
74 Nick Fung Textile Co. Nick Tsui Tak Shing 85.715 0.000 0.000 85.715 85.713 0.000 0.000 0.000 85.713
E-2/F, Far East
Mansion, 5-6, Middle
Road,TST Kowloon,
Hong Kong
75 Jani's (Pvt) Ltd. Muhammad Yousuf Rahim Buksh 0.000 1.099 0.043 1.142 0.000 0.000 0.000 0.742 0.742
Jani Plaza, Khyber 136-89-036915
Super Market, Asif Yousuf Mohd. Yousuf
Peshawar Cantt. 136-89-113200
Anwar Sultana W/o Mohd. Yousuf
136-44-036916
Shahzia Asif D/o Amir Bashir
136-89-123259
76 Sughra Begum Sughra Begum Ghulam Mustafa 0.000 0.558 0.000 0.558 0.000 0.000 0.000 0.558 0.558
135-24-12330
77 Abdul Qadir Abdul Qadir Juma Khan 0.739 1.371 0.000 2.110 0.000 0.000 1.371 0.486 1.857
H.No.5/14, Block #5, 54400-8840521-3
Satellite Town, Quetta
78 Abdul Kabbir Aslam Abdul Kabbir Aslam Kashmir Khan 0.000 0.630 0.000 0.630 0.000 0.000 0.630 0.000 0.630
Goods, Transport Co. 601-41-071422
Sirki Road, Quetta
79 Abdul Ali Abdul Ali Shair Muhammad 0.000 0.570 0.082 0.652 0.000 0.000 0.570 0.082 0.652
Killi Qasim Pishin 602-46-328869
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
80 Nasrullah Nasrullah Niaz Muhammad 0.000 0.596 0.128 0.724 0.000 0.000 0.596 0.128 0.724
H.No.2/31/22, Quetta 601-91-201360
81 Afzal Gichki Afzal Gichki Abdullah Khan 0.000 0.445 0.066 0.511 0.000 0.000 0.445 0.066 0.511
Tehsil Tumb, Distt: 632-89-005850
Turbat
82 Electronic Waqar Azim Muhammad Azim 20.25 47.474 0.979 68.703 14.260 47.474 0.000 0.979 62.713
Information & 101-87-396243
Engergy System * Sajjad Azim Muhammad Azim
Industrial Triangle 514-30-007756
Kahuta Road, Nusrat Azim Muhammad Azim
Islamabad 514-28-123692
Shaukat Azim Muhammad Azim
514-32-123691
Sardar Imtiaz Sardar Nawazish Ali
Ahmed Khan
Begum Sureya Waqar W/O Waqar Azim
Saulat Azim Nusrat Azim
83 Sheikh Jamil & Co. Sheikh Jamil Ahmed Sh Muhammad Rafique 2.125 0.573 0.152 2.850 0.969 0.000 0.000 7.921 8.890
Cotton Ginners, (Deceased)
Wool Merchant NIC # 330-51-132297
Grain Market Sahiwal
84 Nisar & Co. Cotton Abdul Ghani Ali Ahmed 2.339 1.551 0.016 3.906 0.000 0.000 0.000 1.141 1.141
Ginners Abdul Sattar Ali Ahmed
Grain Market Branch, Abdul Jabbar Ali Ahmed
Chichawatni Nisar Ahmed Ali Ahmed
Habib-ur-Rehman Abdul Sattar
Dildar Hussain Akbar Ali
Mst Iqbal Bibi D/o Ali Muhammad
Mst Farzana Shaheen Abdul Ghani
Mst Rasoolan Bibi Abdul Jabbar
Mst Amna Bibi W/o Muhammad Jameel
85 Rizwan Brothers Mian Naved A. Bhatti 4.278 6.031 0.109 10.418 2.778 3.467 0.000 2.673 8.918
(Pvt) Ltd. * 31101-8017979-9
Chest Branch, Mian Muhammad Yasin Mian Badar Din
Haroonabad 31101-7973807-7
Rizwan-ul-Azim Mian Muhammad Yasin
31104-4408943-9
Mrs. Saiqa Hamayoun Hamayoun Bashir
31202-3804215-8
86 Mian Ghulam Mian Ghulam Hussain Rakhan Din 0.990 0.277 0.094 1.361 0.000 0.295 0.000 2.314 2.609
Hussain & Co. Neik Muhammad
Grain Market, Sahiwal 36502-7511338-7
(Sahiwal City) Muhammad Jamil Mian Ghulam Hussain
Mst. Razia Begum Sh. Muhammad Chohan
36502-2022307-4 Sh. Muhammad Chohan
Mst. Rabia Begum Muhammad Saleem
36502-1304949-0
87 Progressive Engineer Manzoor Javed Muhammad Saleem 0.330 0.461 0.017 0.808 0.000 0.230 0.000 0.342 0.572
Bahawalnagar 354-49-164843
88 Wahid Corporation Haji Abdul Wahid Ch. Pir Muhammad 1.920 0.000 0.550 2.470 0.000 0.000 0.000 0.518 0.518
Railway Road, 36402-0816654-9
Pakpattan
89 Akbar Enterprises Aleem Ahmad Khan Tauqeer Ahmad Khan 31.401 5.226 0.000 36.627 26.182 3.592 1.905 0.000 31.679
Ltd. * 35202-2514455-3
128/4, Industrial Mrs.Samuna Tauqeer Tauqeer Ahmad Khan
EstaeTownship Lahore 35202-5727103-6
Mrs.Samina Tanveer Tauqeer Ahmad Khan
35202-2454790-6
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
90 Kamran Steel Anis Gul Gul Muhammad 21.928 48.152 0.000 70.080 0.000 0.000 20.667 0.000 20.667
Re-Rolling * 35202-5831094-5
7/83, Shahrah-e-Qaid- Masoor Gul Gul Muhammad
e-Azam, Lahore 35202-9677320-3
Nabila Masood Gul Masood Gul
35202-2333459-8
Razia Begum Gul Muhammad
35202-9125486-6
91 Sidra Rice Mills Syed Nazim Hussain Sh. Syed Shaukat Ali Shah 32.593 32.445 0.606 65.644 29.826 0.606 32.520 3.284 66.236
(Pvt) Ltd.* 35202-8726846-3
Syeda Tahawar Shahzadi S. Nazim Hussain Shah
3520-5626269-0
92 Ch. Electrods Ch. Muhammad Qasim Ch. Sirajuddin 33.872 2.427 0.000 36.299 17.872 0.000 2.427 16.727 37.026
(Pvt) Ltd. * 35202-2937694-1
29-Kilometer, Lahore Mrs.Salamat Qasim Ch. Muhammad Qasim
Sheikhupura Road 35202-4471323-2
Ahmad Naeem Qasim Ch. Muhammad Qasim
35202-7154990-9
Ch. Muhammad Akram Ch. Sirajuddin
35202-4519175-1
Ahmad Faheem Qasim Ch. Muhamamad Qasim
35202-4932463-3
Nuzhar Faheem Ahmad Fahim Qasim
35202-9662840-6
93 Mumtaz Shahbaz Mirza Iftikhar Baig Mirza Mumtaz Baig 56.706 5.667 0.000 62.373 56.683 0.000 44.060 0.000 100.743
Textile Mills Ltd. * 35202-2379853-5
Mumtaz Centre, Mirza Mumtaz Baig Mirza Niaz Baig
15 Shahrah-e-Fatima 35202-4330287-5
Jinnah, Lahore Mirza Mukhtar Baig Mirza Mumtaz Baig
35202-2317316-1
94 Shaheen Wood Tahir Hussain, Tayab Hussain Qureshi 1.336 0.000 0.144 1.480 0.091 1.784 0.000 0.144 2.019
Works & Furniture 61101-4758309-1
Ind. Hooran, Miss
Azra, Miss
Sub Total NBP 645.611 360.882 30.277 1036.770 478.982 176.542 293.000 415.213 1363.737
95 Siraj Steels Limited * Ch. Muhammad Qasim Ch. Sirajuddin 335.625 195.575 108.136 639.336 180.506 0.000 1124.020 108.136 1412.662
Mouza Rakh Bawli 35202-2937694-1
Jamandar, G.T. Road, Mrs.Salamat Qasim Ch. Muhammad Qasim
Monooabad, Muredke 35202-4471323-2
35202-7154990-9
35202-4519175-1
96 Hasan Spinning Mrs.Nazish Umar Shah Syed Umar Shah 13.283 6.082 14.694 38.059 4.976 0.000 20.777 0.000 25.753
Mills Ltd. * 33100-8480315-2
5th floor, MCB Building, Mrs.Ayesha Rehman Asif-ur-Rehman
Circular Road, 42301-0938338-0
Faisalabad
97 Hill Park General Azizur Rehman Munshi Ahmed Khan 3.362 0.000 5.58 8.942 0.000 0.000 0.000 4.511 4.511
Hospital & Trauma 601-25-024225
Centre * Inamur Rehman Azizur Rehman
(Former New York 601-72-024231
Poly Clinic)
S.N.C.C. 3/4 Block-3,
shaheed-e-Millat Road,
Karachi
98 Haji Muhammad Mushtaq Ahmed Vohra Haji Muhammad Ismail 18.048 0.000 21.803 39.851 17.487 0.000 0.000 21.803 39.290
Ismail Mills Ltd. * 517-93-219564
408 Commerce Gulshad Begum W/o Mushtaq A. Vohra
Centre,Hasrat Mohani 517-92-109025
Road, Karachi Nasir Mushtaq Vohra Mushtaq Ahmed
517-92-219545
Misrah Nisar W/o Nasir Ahmed Vohra
270-66-042184
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
99 Jet Era Textile Abdul Hameed Khan Haji Muhammad Khan 6.467 13.486 0.070 20.023 0.000 0.000 10.277 0.000 10.277
Mills Ltd. 35201-7693230-3
7-Larechs Housing Razia Hameed Abdul Hameed Khan
Society, Lahore 35201-6432074-0
Muhammad Arif Abdul Habib
42000-0441087-3
Sub-Total Ex-NDFC 376.785 215.143 150.283 742.211 202.969 0.000 1155.074 134.450 1492.493
100 Fateh Weaving M. Habib Abbas Bhai 16.893 0.701 2.028 19.622 0.139 20.247 2.028 0.000 22.414
Mills Ltd. * 41304-6497882-3
4th Floor, Sarwar M. Sharif Abbas Bhai
Shaheed Road, 41304-4220853-7
Karachi M. Ashfaq Abbas Bhai
42201-0771559-5
Abdul Waheed Abbas Bhai
41303-7481833-7
Perveen Habib, Mrs. M. Habib
41303-4804521-2
Rukhsana Sharif, Mrs. M. Sharif
41304-4346680-4
Naila Ashfaq, Mrs. M. Ashfaq
41303-2929820-4
101 Fateh Apparel * M. Habib Abbas Bhai 4.583 0.434 0.000 5.017 2.317 6.441 0.117 0.000 8.875
4th Floor, Sarwar 41304-6497882-3
Shaheed Road, M. Sharif Abbas Bhai
Karachi 41304-4220853-7
M. Ashfaq Abbas Bhai
42201-0771559-5
41303-7481833-7
Sumera Waheed Abdul Waheed
41303-2929820-4
41303-4804521-2
41304-4346680-4
102 Nephew & Nephew* M. Habib Abbas Bhai 4.713 0.297 0.120 5.130 2.448 6.518 0.120 0.000 9.086
4th Floor, Sarwar 41304-6497882-3
Karachi 41304-4220853-7
42201-0771559-5
41303-7481833-7
41303-4804521-2
Rukhsana Sharif, Mrs. M Sharif
41304-4346680-4
41303-2929820-4
103 Admani * Corporation Ayaz Admani Sattar Ahmed 0.471 0.000 0.010 0.481 0.312 0.002 0.010 0.000 0.324
Bill Apartment Flat#14, 42301-0762274-1
Mc-Neil Road, Frear
Town,
P.O. Box No.15523,
Karachi
Sub Total EX-MBL 26.660 1.432 2.158 30.250 5.216 33.208 2.275 0.000 40.699
TOTAL 1049.056 577.457 182.718 1809.231 687.167 209.750 1450.349 549.663 2896.929
* Accounts settled under SBP Circular No. 29 dated 15-10-2002

Islamic Banking Business Annexure III
The bank is operating 1 Islamic banking branch at the end of current year as compared to nil Islamic banking
Branches at the end of Prior year.
2006 2005
ASSETS Rupees in ‘000
Cash and balances with treasury banks 4,724 -

Balances with and Due from Financial Institutions 99,000 -
Investments - -
Financing and Receivables - -
-Murahaba - -
-Ijara -
- -
-Musharaka
-Diminishing Musharaka - -
-Salam - -
-Other Islamic Modes - -
Other assets - -
103,724 -
LIABILITIES
Bills payable 800 -

Due to Financial Institutions - -
Deposits and other accounts -
- Current Accounts 2,911 -
- Saving Accounts - -
- Term Deposits - -
- Others - -
- Deposit from Financial Institutions -Remunerative - -
- Deposits from Financial Institutions-Non-Remunerative - -
Due to Head Office - -
Other liabilities 11 -
3,722 -
100,002 -
REPRESENTED BY
Islamic Banking Fund 100,000 -

Reserves - -
Unappropriated/unremitted profit 2 -
100,002 -
Surplus /(Deficit) on revaluation of assets - -
100,002 -
Remuneration to Shariah Advisor/Board - -
CHARITY FUND
Opening Balance - -
Additions during the period - -
Payments/Utilization during the period - -
Closing Balance - -
Unprecedented
Safety
Unprecedented
Return
Monthly Income Scheme

** Premature encashment will result in lower rates of return.
Earn upto 11% p.a.+

Minimum deposit of Rs. 500,000 and a maximum deposit of
Rs. 5,000,000 for 5 years
Free Demand Draft, Pay Order and Cheque Book*
*** Expected rates are for the given year.
Convenience of NBP Online Aasan Banking (for online banking customers)

Free NBP Cash Card (ATM + Debit)
Profit paid every month as follows:
+ Profit rates are expected
Year ** Profit Rate(%)***

1 7.50
* Conditions apply
2 8.50
3 9.50
4 10.50
5 11.00
CONSOLIDATED FINANCIAL
STATEMENTS OF NBP
AND ITS SUBSIDIARY
COMPANIES - 2006
109
Auditors’ Report To The Members
We have audited the accompanying consolidated financial statements of National bank of Pakistan
(the holding company) and its subsidiary companies (together, the Group) which comprise the
consolidated balance sheet as of December 31, 2006 and the consolidated profit and loss account,
consolidated cash flow statement and consolidated statement of changes in equity together with the
note forming part thereof, for the year then ended. These financial statements include unaudited
certified returns from the branches, except for sixty branches, which have been audited by us and
fourteen branches audited by auditors abroad. We have also expressed separate opinion on the
financial statements of National Bank of Pakistan. These financial statements are responsibility of
management of the Group. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of any material misstatement. An audit includes examining on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting policies and significant estimates made by management, as well
as, evaluating the overall presentation of the financial statements. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements examined by us based on sixty branches audited
by us and the returns referred to above received from the branches which have been found adequate
for the purposes of our audit, give a true and fair view of the financial position of the Group as at
December 31, 2006 and the results as operation, its cash flows and changes in equity for the year then
ended in accordance with approved accounting standards as applicable in Pakistan.
Comparative financial information has been complied from the audited financial statements of the
holding company and its subsidiaries. The holding company's financial statements were audited by
Ford Rhodes Sidat Hyder & Co., Chartered Accountants, and KPMG Taseer Hadi & Co., Chartered
Accountants, whose report dated March 18, 2006 expressed an unqualified opinion. Audited financial
statements of the Group for the year ended December 31, 2005 were not published as the holding
company was exempted from preparing the consolidated financial statements by the Securities and
Exchange Commission of Pakistan.
FORD RHODES SIDAT HYDER & CO. M. YOUSUF ADIL SALEEM & CO.
Karachi Karachi

Consolidated Balance Sheet
(as at December 31, 2006)
2005 2006 2006 2005

Note
ASSETS
1,171,820 1,295,165 Cash and balances with treasury banks 6 78,862,625 71,352,128
518,954 680,121 Balances with other banks 7 41,412,546 31,599,103
271,679 380,425 Lendings to financial institutions 8 23,164,082 16,542,546
2,580,497 2,311,382 Investments 9 140,740,067 157,126,472
4,413,483 5,197,172 Advances 10 316,455,800 268,736,986
156,378 159,960 Operating fixed assets 11 9,739,938 9,521,854
- - . Deferred tax assets - . - .
406,711 452,844 Other assets 12 27,573,646 24,764,611
9,519,522 10,477,069 637,948,704 579,643,700
LIABILITIES
28,595 174,177 Bills payable 13 10,605,662 1,741,156

153,426 208,284 Borrowings 14 12,682,412 9,342,096
7,607,100 8,244,650 Deposits and other accounts 15 502,016,711 463,196,347
- . - Sub-ordinated loans - - .
Liabilities against assets subject
331 235 to finance lease 16 14,336 20,177
73,117 39,031 Deferred tax liabilities 17 2,376,606 4,452,092
400,808 446,482 Other liabilities 18 27,186,290 24,405,181
8,263,377 9,112,859 554,882,017 503,157,049
1,256,145 1,364,210 NET ASSETS 83,066,687 76,486,651
REPRESENTED BY
97,043 116,451 Share capital 19 7,090,712 5,908,927

207,388. 236,243 Reserves 14,384,857 12,627,849
323,550 535,778 Unappropriated profit 32,623,507 19,700,932
627,981 888,472 54,099,076 38,237,708
1,410 1,607 Minority Interest 97,827 85,877
629,391 890,079 54,196,903 38,323,585
626,754 474,131 Surplus on revaluation of assets 20 28,869,784 38,163,066
1,256,145 1,364,210 83,066,687 76,486,651
CONTINGENCIES AND COMMITMENTS

21
Consolidated Profit and Loss Account
2005 2006 2006 2005

Note
555,005 722,848 Mark-up/return/interest earned 23 44,014,204 33,794,232

170,533 225,384 Mark-up/return/interest expensed 24 13,723,656 10,383,750
384,472 497,464 Net mark-up/ interest income 30,290,548 23,410,482
40,183 50,513 Provision against non-performing loans and advances 10.4 3,075,723 2,446,739
(4,038) (11,613) Provision for diminution in the value of investments 9.12 (707,105) (245,881)
379 87 Bad debts written off directly 10.5 5,284 23,069
36,524 38,987 2,373,902 2,223,927
347,948 458,477 Net mark-up/ interest income after provisions 27,916,646 21,186,555
NON MARK-UP/INTEREST INCOME

83,062 102,669 Fee, commission and brokerage income 6,251,485 5,057,616
28,375 47,681 Dividend income 2,903,290 1,727,739
19,940 22,568 Income from dealing in foreign currencies 1,374,163 1,214,137
22,590 19,630 Gain on sale of securities 25 1,195,249 1,375,494
Unrealized loss on revaluation of
(25) (73) investments classified as held for trading 9.14 (4,463) (1,493)
1,487 2,123 Share of profits from joint ventures 129,296 90,531
167 169 Share of profits from an associate 10,268 10,139
3,915 10,339 Other income 26 629,545 238,401
159,511 205,106 Total non-markup/interest income 12,488,833 9,712,564
507,459 663,583 40,405,479 30,899,119
NON MARK-UP/INTEREST EXPENSES

187,240 224,104 Administrative expenses 27 13,645,699 11,401,026
3,711 (284) Other (reversals) / provisions / write offs (17,283) 225,942
1,038 3,421 Other charges 28 208,327 63,206
191,989 227,241 Total non-markup/interest expenses 13,836,743 11,690,174
315,470 436,342 26,568,736 19,208,945
- - Extra ordinary/unusual items - -
315,470 436,342 Profit Before Taxation 26,568,736 19,208,945
117,678 143,232 Taxation - Current 29 8,721,386 7,165,385
(18,044) 8,715 - Prior year(s) 530,652 (1,098,709)
4,925 1,018 - Deferred 61,981 299,879
104,559 152,965 9,314,019 6,366,555
210,911 283,377 Profit After Taxation 17,254,717 12,842,390
(285) (196) Profit attributable to minority shareholders (11,950) (17,377)
210,626 283,181 Profit attributable to shareholders of the holding company 17,242,767 12,825,013
183,201 323,550 Unappropriated profit brought forward 19,700,932 11,155,128
393,827 606,731 Profit available for appropriation 36,943,699 23,980,141
0.30 0.40 Basic earnings per share (Rupees) 30 24.32 18.09
0.30 0.40 Diluted earnings per share (Rupees) 31 24.32 18.09
Consolidated Cash Flow Statement
2005 2006 2006 2005

Note
CASH FLOWS FROM OPERATING ACTIVITIES
315,470 436,340 Profit before taxation 26,568,736 19,208,945

28,375 47,681 Less: Dividend income 2,903,290 1,727,739
287,095 388,659 23,665,446 17,481,206
Adjustments:
9,451 8,158 Depreciation 496,763 575,478
58 67 Amortization 4,074 3,525
40,183 50,513 Provision against non-performing advances 3,075,723 2,446,739
(4,038) (11,613) Provision for diminution in the value of investments (707,105) (245,881)
(282) (148) Gain on sale of fixed assets (9,010) (17,174)
42 33 Financial charges on leased assets 1,994 2,571
379 87 Bad debts written off directly 5,284 23,069
(470) - Reversal for voluntary handshake scheme - (28,635)
(1,487) (2,123) Share of profits from joint ventures (129,296) (90,531)
(167) (169) Share of profits from an associate (10,268) (10,139)
3,711 (284) Other(reversals) / provisions / write offs (17,283) 225,942
47,380 44,521 2,710,876 2,884,964
334,475 433,180 26,376,322 20,366,170
(Increase)/decrease in operating assets
(96,430) (108,746) Lendings to financial institutions (6,621,536) (5,871,595)
3,600 (2,657) Held-for-trading securities (161,757) 219,203
(834,466) (834,288) Advances (50,799,821) (50,810,652)
(57,425) (56,750) Other assets (3,455,515) (3,496,583)
(984,721) (1,002,441) (61,038,629) (59,959,627)
Increase/(decrease) in operating liabilities
(89,892) 145,582 Bills payable 8,864,507 (5,473,515)
(31,444) 57,797 Borrowings 3,519,282 (1,914,636)
(39,680) 637,549 Deposits 38,820,364 (2,416,126)
30,640 45,631 Other liabilities (excluding current taxation) 2,778,482 1,865,673
(130,376) 886,559 53,982,635 (7,938,604)
(132,723) (137,728) Income tax paid (8,386,228) (8,081,500)
445 - Voluntary handshake scheme cost received - 27,106
(42) (33) Financial charges paid (1,994) (2,571)
(132,320) (137,761) (8,388,222) (8,056,965)
(912,942) 179,537 Net cash from / (used in) operating activities 10,932,106 (55,589,026)
CASH FLOWS FROM INVESTING ACTIVITIES

107,222 125,054 Net investments in available-for-sale securities 7,614,555 6,528,731
116,455 (25,698) Net investments in held-to-maturity securities (1,564,722) 7,090,915
28,375 47,681 Dividend income received 2,903,290 1,727,739
(14,040) (12,029) Investment in operating fixed assets (732,436) (854,892)
(488) (616) Investment in associates and joint ventures (37,500) (29,705)
380 364 Sale proceeds of property and equipment disposed off 22,170 23,113
237,904 134,756 Net cash from investing activities 8,205,357 14,485,901
CASH FLOWS FROM FINANCING ACTIVITIES

(382) (162) Payments of lease obligations (9,854) (23,270)
(12,096) (24,218) Dividend paid (1,474,605) (736,529)
(12,478) (24,380) Net cash used in financing activities (1,484,459) (759,799)
(2,287) (2,465) Effects of exchange rate changes on cash and cash equivalents (150,098) (139,261)
(689,803) (287,448) Increase / (decrease) in cash and cash equivalents 17,502,906 (42,002,185)
2,370,185 1,680,382 Cash and cash equivalents at beginning of the year 32 102,318,480 144,320,665
1,680,382 1,967,830 Cash and cash equivalents at end of the year 32 119,821,386 102,318,480
Annexed notes 1 to 45 form an integral part of these financial statements.
Consolidated Statement of Changes in Equity
Attributable to the shareholders of the Bank

Reserves
Capital Statutory Revenue
Share Exchange Issue of General Unappropriated Minority Total
Capital equalisation bonus shares Profit Interest
(Rupees in ‘000)
Balance as at January 1, 2005 as previously reported 4,924,106 3,893,558 984,821 5,803,221 521,338 9,431,691 68,500 25,627,235

Transfer to reserve for issue of bonus shares - - (984,821) - - 984,821 - -
Proposed cash dividend - - - - - 738,616 - 738,616

(984,821) - 1,723,437 738,616
Balance as at January 1, 2005 (restated) 4,924,106 3,893,558 - 5,803,221 521,338 11,155,128 68,500 26,365,851

of foreign branches, subsidiaries & joint venture - (139,261) - - - - - (139,261)

incremental depreciation - net of tax - - - - - 43,221 - 43,221
Net income recognized directly in equity - (139,261) - - - 43,221 - (96,040)

December 31, 2005 - - - - - 12,825,013 17,377 12,842,390
Total recognized income and expense for the year - (139,261) - - - 12,868,234 17,377 12,746,350
Issue of bonus shares 20% 984,821 - - - (984,821) - -
Cash dividend (Rs.1.5 per share) - - - - - (788,616) - (788,616)
Transfer to statutory reserve - - - 2,548,993 - (2,548,993) - -
Balance as at December 31, 2005 (restated) 5,908,927 3,754,297 - 8,352,214 521,338 19,700,932 85,877 38,323,585
Balance as at January 1, 2006 as previously reported 5,908,927 3,754,297 1,181,785 8,352,214 521,338 17,041,915 85,877 36,846,353

Transfer to reserve for issue of bonus shares - - (1,181,785) - - 1,181,785 - -
Proposed cash dividend - - - - - 1,477,232 - 1,477,232

- - (1,181,785) - - 2,659,017 - 1,477,232
Balance as at January 1, 2006 (restated) 5,908,927 3,754,297 - 8,352,214 521,338 19,700,932 85,877 38,323,585

of foreign branches, subsidiaries & joint venture - 553,269 - - - - - 553,269
Adjustment due to closure of Cairo branch - (498,496) - - - - - (498,496)

- - - - - 41,060 - 41,060
incremental depreciation - net of tax
Net income recognised directly in equity - 54,773 - - 41,060 - 95,833

December 31, 2006 - - - - - 17,242,767 11,950 17,254,717
Total recognised income and expense for the year - 54,773 - - - 17,283,827 11,950 17,350,550
Issue of bonus shares 20% 1,181,785 - - - - (1,181,785) - -
Cash dividend (Rs.2.5 per share) (1,477,232) - (1,477,232)
Transfer to statutory reserve - - - - (1,702,235) - -
Balance as at December 31, 2006 7,090,712 3,809,070 - 10,054,449 521,338 32,623,507 97,827 54,196,903
Notes to the Consolidated Financial Statements
1. THE GROUP AND ITS OPERATIONS
1.1 The "Group" Consist of:
Holding Company
National Bank of Pakistan (the bank)
Subsidiary Companies
- NBP Capital Limited

- JSC Subsidiary Bank of NBP in Kazakhstan
- NBP Exchange Company Limited
- NBP Modaraba Management Company Limited
- Taurus Securities Limited
- National Agriculture & Storage Company Limited
- Cast-N- Link Products Limited
The Group is engaged in commercial banking, modaraba management, brokerage, leasing and mutual funds.
The bank was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on all
the stock exchanges in Pakistan. Its registered and head office is situated at I.I. Chundrigar Road, Karachi. The
bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank also
handles treasury transactions for the Government of Pakistan (GoP) as an agent to the State Bank of Pakistan
(SBP). The bank operates 1,232 (2005: 1,224) branches in Pakistan and 18 (2005: 18) overseas branches
(including the Export Processing Zone branch, Karachi). Under a Trust Deed, the bank also provides services as
trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT.
NBP Capital Limited, JSC Subsidiary Bank of NBP in Kazakhistan, NBP Exchange Company Limited, NBP
Modaraba Management Company Limited and National Agricultural & Storage Company Limited are wholly
owned subsidiaries of the bank while the controlling interest in Taurus Securities Limited is 58.32% and Cast-N-
Link Products Limited is 76.51%.
1.2 BASIS OF CONSOLIDATION
- The consolidated financial statements include the financial statements of the bank (holding company) and
its subsidiary companies - "the Group".
- Subsidiary companies are consolidated for the first time, as in prior years the holding company had
obtained exemption from the Securities and Exchange Commission of Pakistan (SECP) to prepare
consolidated financial statements.
- The assets and liabilities of subsidiary companies have been consolidated on a line by line basis and the
carrying value of investments held by the bank is eliminated against the subsidiaries' shareholders' equity
in the consolidated financial statements.
- Minority interest are that part of the net results of operations and of net assets of subsidiary companies
attributable to interests which are not owned by the bank.
- Material intra-group balances and transactions have been eliminated.
- National Agriculture & Storage Company Limited and Cast-N-Link Product Limited have not been
consolidated, as these investments are fully provided and financial statements of these subsidiaries are
not available.
2. BASIS OF PRESENTATION
In accordance with the directives of the Federal Government of Pakistan regarding the shifting of the banking
system to Islamic modes, the SBP has issued various circulars from time to time. Permissible form of trade
related mode of financing includes purchase of goods by the bank from their customers and immediate
resale to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising
under these arrangements are not reflected in these financial statements as such but are restricted to the
amount of facility actually utilized and the appropriate portion of mark-up thereon.
3. STATEMENT OF COMPLIANCE
These financial statements are prepared in accordance with the directives issued by the State Bank of
Pakistan, the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 and approved
accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International
Financial Reporting Standards as are notified under the provisions of the Companies Ordinance, 1984. Wherever
the requirements of the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984 or directives
issued by the State Bank of Pakistan and the SECP differ with the requirements of these standards, the
requirements of Banking Companies Ordinance, 1962, the Companies Ordinance, 1984, and the requirements of
the said directives take precedence.
The SECP has approved the adoption of International Accounting Standard 39, "Financial Instruments:
Recognition and Measurement" and International Accounting Standard 40, "Investment Property". The
requirements of these standards have not been taken into account for the purpose of these financial statements as
the implementation of the said standards has been deferred by SBP, vide BSD circular number 01 dated August
26, 2002, for banks in Pakistan till further instructions. However, investments have been classified and valued in
accordance with the requirements of various circulars issued by SBP.
4. BASIS OF MEASUREMENT
These financial statements have been prepared under the historical cost convention as modified by
revaluation of land and buildings and valuation of certain investments and derivative financial instruments at
fair value.
The preparation of financial statements in conformity with approved accounting standards and statutory
requirements require the use of critical accounting estimates. It also requires management to exercise its
judgment in the process of applying accounting policies. The areas involving a higher degree of judgment or
complexity or areas where assumptions and estimates are significant to the financial statements are disclosed
below:
Accounting estimates and judgments
a) Provision against non performing loans and advances
The Bank reviews its loan portfolio to assess amount of non performing loans and advances and provision
required there against on a quarterly basis. While assessing this requirement various factors including
the delinquency in the account, financial position of the borrower, the forced sale value of securities and
requirements of prudential regulations are considered. The estimates of forced sale values are supported
by independent valuations of the assets mortgaged/ pledged.
Last year the management based on a review of the bank's portfolio of branches affected by the
earthquake and the security there against had made an estimated general provision of Rs.450 million.
During 2006 no further damages were reported therefore management, based on its review of this
portfolio, considers no further provision to be made against the portfolio and provision required as at
December 31, 2006 is Rs. 332 million.
The amount of general provision against consumer advances is determined in accordance with the relevant
prudential regulations. The data about historical experience is being accumulated.
(b) Fair value of derivatives
The fair value of derivatives which are not quoted in active markets are determined by using valuation
techniques. The valuation techniques take into account the relevant interest rates in effect at the balance
sheet date and the rates contracted.
(c) Impairment of available for-sale equity investments
The Group determines that available-for-sale equity investments are impaired when there has been a
significant or prolonged decline in the fair value below its cost. This determination of what is significant or
prolonged requires judgment. In making this judgment, the Group evaluates among other factors, the
normal volatility in share price. In addition, impairment may be appropriate when there is evidence of
deterioration in the financial health of the investee, industry and sector performance, changes in
technology, and operational and financing cash flows.
(d) Held-to-maturity investments
The Group follows the guidance provided in SBP circulars on classifying non-derivative financial assets
with fixed or determinable payments and fixed maturity as held-to-maturity. In making this judgment, the
Bank evaluates its intention and ability to hold such investments to maturity.
(e) Income taxes
In making the estimates for income taxes currently payable by the Group, the management looks at the
current income tax laws and the decisions of appellate authorities on certain issues in the past. There are
various matters where bank's view differs with the view taken by the income tax department and such
amounts are shown as contingent liability.
(f) Pension / Gratuity
The cost of the defined benefit pension/gratuity plan is determined using actuarial valuation. The actuarial
valuation involves making assumptions about discount rates, expected rates of return on assets, future
salary increases, mortality rates and future pension increases. Due to the long term nature of these plans,
such estimates are subject to significant uncertainty.
5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
5.1 Change in accounting policy
During the year the Institute of Chartered Accountants of Pakistan issued a circular number 06-2006 dated
June 19,2006 which requires that all declarations of dividend to holders of equity instruments including
declaration of bonus issues and other appropriations except appropriations which are required by law
after the balance sheet date should not be recognised as liabilities or appropriations of profit at the
balance sheet date. Previously all declarations of dividends to holder of equity instruments and transfer to
reserve relating to profit for the year although declared subsequent to year end, were accounted for in the year to
which those related. This change has been applied retrospectively and comparatives have been restated. The
change in accounting policy has been reflected in statement of changes in equity.
The change in accounting policy has been accounted for retrospectively and comparative information has been
restated in accordance with the IAS - 8 "Accounting Policies, Changes in Accounting Estimate and Errors".Had
there been no change in accounting policy, the unappropriated profit brought forward would have been lower by
Rs. 2,659 million (2005: Rs.1,723 million) and the liability for proposed dividend and reserve for bonus issue
would have been higher by Rs. 1,477 million (2005: Rs. 738 million) and Rs.1,182 million (2005: Rs.985 million)
respectively. The effect of change in accounting policy has been reflected in the comparative balance sheet and
the statement of changes in Equity. The change in accounting policy has not resulted in any change in the net
profit for the current year.
5.2 Standard, interpretation and amendment to published approved accounting standards that are not
yet effective
(i) IAS - 1, “Presentation of Financial Statements”

- Capital Dsiclosures effective from January 1, 2007
(ii) IFRIC 11, IFRS 2 - “Group Treasury Share Transactions” effective from March 1, 2007
(iii) IFRIC 12, “Service Concession Arrangements” effective from January 1, 2009
Adoption of the above amendments / interpretations may only impact the extent of disclosures presented
in the financial statements.
In addition to above, a new series of standards called "International Financial Reporting Standards (IFRSs)" have
been introduced and seven IFRSs have been issued by International Accounting Standard Board. Out of these
following four IFRSs have been adopted by the SECP vide its S.R.O. (l)/2006 dated December 06, 2006:
(i) IFRS-2 “Share-based Payments";

(ii) IFRS-3 "Business Combinations";
(Iii) IFRS-5 "Non-current Asset Held for Sale and Discontinued Operations"; and
(iv) IFRS-6 "Exploration for and Evaluation of Mineral Resources".
The Group expects that the adoption of the pronouncements mentioned above will have no significant impact on
the Group's financial statements in the period of initial application.
5.3 Cash and cash equivalents
Cash and cash equivalents include cash and balances with treasury banks and balances with other banks
in current and deposit accounts less overdrawn nostro accounts.
5.4 Investments
All investments acquired by the bank are initially recognized at cost, being the fair value of consideration
given including acquisition cost.
The bank has classified its investment portfolio, except for investments in subsidiaries, associates and
joint ventures, into 'held-for-trading', 'held-to-maturity' and 'available-for-sale' portfolios as follows:
- Held-for-trading These are securities which are acquired with the intention to trade by taking advantage of
short term market/interest rate movements and are to be sold within 90 days. These are carried at market
value, with the related surplus/(deficit) being taken to profit and loss account.
- Held-to-maturity These are securities with fixed or determinable payments and fixed maturity that are
held with the intention and ability to hold to maturity. These are carried at amortised cost.
- Available-for-sale These are investments that do not fall under the held-for-trading or held-to-maturity
categories. These are carried at market value with the surplus/(deficit) taken to 'surplus/(deficit) on
revaluation of assets' account below equity, except that available-for-sale investments in unquoted shares,
debentures, bonds, participation term certificates, term finance certificates, federal, provincial and foreign
government securities (except for Treasury Bills, Federal Investment Bonds and Pakistan Investment Bonds) are
stated at cost less provision for impairment, if any. Provision in respect of unquoted shares is calculated with
reference to break-up value. Provision for unquoted debt securities is calculated with reference to the time-
based criteria as per the SBP's Prudential Regulations.
- Subsidiaries - Subsidiaries are all entities over which the bank has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting rights.
Subsidiaries are fully consolidated from the date on which control is transferred to the bank. They are de-
consolidated from the date on which control ceases.
- Associates - Associates are all entities over which the Group has significant influence but not control,
generally accompanying a shareholding of between 20% and 50% of the voting rights. Investments in
associates are accounted for by the equity method of accounting and are initially recognized at cost.
However, in case where associates are fully provided and financial statements are not available these
investments are stated at cost less provision.
- The Group's share of its associates' post-acquisition profits or losses is recognized in the income
statement; its share of post-acquisition movements in reserves is recognized in reserves. The cumulative
post-acquisition movements are adjusted against the carrying amount of the investment. When the bank's
share of losses in an associate equals or exceeds its interest in the associate, including any other
unsecured receivables, the Group does not recognize further losses, unless it has incurred obligations or
made payments on behalf of the associate.
- Joint ventures - The Group has interests in joint ventures which are jointly controlled entities. A joint venture is
contractual arrangement whereby two or more parties undertake in economical activity that is subject to a joint
control and a jointly controlled entity in a joint venture that involves the establishment of separate entity in
which each ventures has an interest. The bank recognizes its interest in joint venture using the equity method
of accounting and is initially recognized at cost.
On derecognition or impairment in quoted available-for-sale investments the cumulative gain or loss previously
reported as “surplus/(deficit) on revaluation of assets” below equity is included in the profit and loss account for the
period.
Held-for-trading and quoted available-for-sale securities are marked to market with reference to ready quotes on
Reuters page (PKRV) or the Stock Exchanges.
Premium or discount on debt securities classified as available-for-sale and held-to-maturity securities is amortised
using the effective interest method and taken to interest income.
Gains and losses on disposal of investments are dealt with through the profit and loss account in the year in which
they arise.
The carrying values of investments are reviewed for impairment at each balance sheet date. Where any such
indications exist that the carrying values exceed the estimated recoverable amounts, provision for impairment is
made through the profit and loss account.
5.5 Discounting of negotiable instruments
These are stated at cost less provision for doubtful debts, if any. The provision is made in accordance with the
SECP Prudential Regulations for Non Banking Finance Companies.
5.6 Repurchase and resale agreements
Securities sold with a simultaneous commitment to repurchase at a specified future date (repos) continue to be
recognised in the balance sheet and are measured in accordance with accounting policies for investment
securities. The counterparty liability for amounts received under these agreements is included in borrowings from
financial institutions. The difference between sale and repurchase price is treated as mark-up/return/ interest
expense and accrued over the life of the repo agreement using effective yield method.
Securities purchased with a corresponding commitment to resell at a specified future date (reverse repos) are not
recognised in the balance sheet, as the bank does not obtain control over the securities. Amounts paid under these
agreements are included in lendings to financial institutions. The difference between purchase and resale price is
treated as mark-up/return/interest income and accrued over the life of the reverse repo agreement using effective
yield method.
5.7 Net investment in lease finance
Leases where the group transfers substantially all the risk and rewards incidental to ownership of the assets to the
lessee are classified as finance leases. Net investment in lease finance is recognised at an amount equal to the
aggregate of minimum lease payment including any guaranteed residual value and excluding unearned finance
income, write-offs and provision for doubtful lease finances, if any. The provision is made in accordance with the
SECP Prudential Regulations for Non Banking Finance Companies.
5.8 Derivative financial instruments
Derivative financial instruments include forward foreign exchange contracts, equity futures and interest rate
swaps. These are initially recognized at fair value and subsequently remeasured at fair value. Fair value is
calculated by reference to quoted market price. In the event of non-availability of market prices, discounted cash
flow model is used to determine the fair value. Any change in the fair value of derivative instruments is taken to the
profit and loss account.
5.9 Trade date accounting
All regular way purchases/sales of investment are recognised on the trade date, i.e., the date the bank commits to
purchase/sell the investments. Regular way purchases or sales of investment require delivery of securities within
three days after the transaction date as required by stock exchange regulations.
5.10 Financial instruments
All the financial assets and financial liabilities are recognized at the time when the bank becomes a party to the
contractual provisions of the instrument. Any gain or loss on derecognition of the financial assets and financial
liabilities is taken to income currently.
5.11 Advances
Advances are stated net of provisions for non-performing advances. Provision is made in accordance with the
requirements of Prudential Regulations issued by SBP and charged to the profit and loss account. Provision in
respect of overseas branches are made in accordance with the respective central bank's requirements. Advances
are written off where there are no realistic prospects of recovery.
In respect of advances of former Mehran Bank Limited (MBL) amalgamated with the bank, the provision is
calculated inline with the guiding principles of the amalgamation deed (the Deed), whereby the bank shall not
suffer any loss as a direct consequence of amalgamation. Considering the guideline of the Deed, the funded
credits are provided on the basis of security shortfall and the provision is made against unfunded credits to the
extent of subsequent cash payments made against them on the basis of shortfall in the value of security.
5.12 Operating fixed assets and depreciation
Owned assets
Fixed assets except land and buildings are stated at cost less accumulated depreciation and impairment losses, if
any. Land is stated at revalued amount. Buildings are stated at revalued amount less accumulated depreciation.
Depreciation is charged to income applying the diminishing balance method except vehicles, computers and
furnishing limit to executives, which are depreciated on straight-line method at the rates stated in note 11.2. From
2005 the bank had changed its accounting estimate for charging depreciation. Depreciation is now charged from
the month in which the assets are brought into use and no depreciation is charged from the month the assets are
deleted.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the bank and the cost of
the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Gains and losses on disposal of fixed assets are included in income currently.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Land and buildings' valuation are carried out by professionally qualified valuers with sufficient regularity to ensure
that their carrying amount does not differ materially from their fair value.
Surplus on revaluation of fixed assets to the extent of incremental depreciation charged to the related assets is
transferred to retained earnings (net of deferred tax).
Leased assets
Assets subject to finance lease are accounted for by recording the assets and the related liability. These are
recorded at lower of fair value and the present value of minimum lease payments at the inception of lease and
subsequently stated net of accumulated depreciation. Depreciation is charged on the basis similar to the owned
assets. Financial charges are allocated over the period of lease term so as to provide a constant periodic rate of
financial charge on the outstanding liability.
Intangible assets
Intangible assets are stated at cost less accumulated amortization and impairment losses, if any. Amortization is
charged to income applying the straight-line method at the rates stated in note 11.4.
Room and membership card are considered to have an indefinite useful life and are stated at acquisition cost.
Capital work in progress
Capital work in progress is stated at cost. These are transferred to specific assets as and when assets are available
for use.
Impairment
The carrying values of fixed assets are reviewed for impairment when events or changes in circumstances indicate
tha the carrying values may not be recoverable. If any such indication exists and where the carrying values exceed
the estimated recoverable amounts, the fixed assets are written down to their recoverable amounts.
5.13 Taxation
Current
Provision of current taxation is based on taxable income for the year determined in accordance with the prevailing
laws of taxation on income earned for local as well as foreign operations, as applicable to the respective
jurisdictions. The charge for the current tax in consolidated financial statements using prevailing tax rates or tax
rate expected to apply to the profits for the year at enacted rate or minimum tax at the rate of 0.5% of turnover
whichever is higher. The charge for the current tax also includes adjustments wherever considered necessary
relating to prior year, arising from assessments framed during the year.
Deferred
Deferred income tax is provided, using the liability method, on all temporary differences at the balance sheet
between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are not recognised in respect of taxable temporary differences associated with
interests in joint ventures and branches, where the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and any unused tax losses, to the extent that it is probable that taxable profits will be available against which
the deductible temporary differences, carry-forward of unused tax assets and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the balance sheet date.
Income tax relating to the items recognized directly in equity are recognized in equity and not in the profit and loss
account.
5.14 Employees benefits
5.14.1 Defined benefit plans
Pension scheme
The group operates defined benefit approved funded pension scheme for its eligible employees. The group's
costs are determined based on actuarial valuation carried out using Projected Unit Credit Method. Net
cumulative un-recognized actuarial gains/losses relating to previous reporting period in excess of the higher of
10% of present value of defined benefit obligation or 10% of the fair value of plan assets are recognized as
income or expense over the estimated working lives of the employees. Where the fair value of plan assets exceeds
the present value of defined benefit obligation together with unrecognized actuarial gains or losses and
unrecognized past service cost, the group reduces the resulting asset to an amount equal to the total of present
value of any economic benefit in the form of reduction in future contributions to the plan and unrecognized actuarial
losses and past service costs.
Employees' compensated absences
The group accounts for all accumulating compensated absences when employees render service that increases
their entitlement to future compensated absences. The liability is determined based on actuarial valuation carried
out using the Projected Unit Credit Method.
Post retirement medical benefits
The group operates an un-funded defined benefit-post retirement medical benefits scheme for all of its employees.
Provision is made in the financial statements for the benefit based on actuarial valuation carried out using the
Projected Unit Credit Method. Actuarial gains/losses are accounted for in a manner similar to the pension scheme.
Benevolent scheme
The group also operates an un-funded defined benefit benevolent scheme for its eligible employees. Provision is
made in the financial statements based on the actuarial valuation using the Projected Unit Credit Method Actuarial
gains/losses are recognized in the period in which they arise.
Gratuity scheme
The group operates an approved and funded gratuity scheme for all eligible employees who have completed the
minimum qualifying period of service. The contributions to the scheme are made in accordance with actuarial
valuation using Projected Unit Credit method.
The group's policy with regard to actuarial gains / (losses) is to follow minimum recommended approach under IAS
19 and recognize these over the average expected remaining life of the members of the scheme.
Transitional cost is recognised over a period of five years.
5.14.2 Defined contribution plan
The group operates an approved funded provident fund scheme covering all its employees. Equal monthly
contributions are made by the Company and employees to the fund in accordance with the fund rules.
Retirement and other benefit obligations
The Group withholds amounts of pension contributions from employee salaries and pays them to state pension
fund. In accordance with the requirements of the Kazakhstan's legislation state pension system provides for the
calculation of current payments by the employer as a percentage of current total payments to staff. This expense is
charged in the period the related salaries are earned. Upon retirement all retirement benefit payments are made by
pension funds selected by employees. The Bank does not have any pension arrangements separate from the
State pension system of the Republic of Kazakhstan. In addition, the Bank has no post-retirement benefits or other
significant compensated benefits requiring accrual.
5.15 Revenue recognition
Mark-up/return/interest on advances and return on investments are recognized on time proportion basis except in
case of advances and investments classified under the Prudential Regulations on which mark-up is recognized on
receipt basis.
Interest/mark-up on rescheduled/restructured advances and investments is recognized in accordance with the

Prudential Regulations of SBP.
Fee, commission and brokerage income and remuneration for trustee services is recognized at the time of
performance of services.
Dividend income on equity investments is recognized when right to receive is established. Dividend received on
equity investments acquired after the announcement of dividend till the book closure date are not taken to income
but reflected as reduction in the cost of investment.
Income on discounting of banker's acceptances, bills of exchange, invoices, lease receivable and promissory
notes are recognized on time proportionate basis.
Financing method is used in accounting for recognition of finance income (excess of aggregate lease rental and
the residual value over the cost of leased assets) is determined and then amortized over the term of the lease,
applying the annuity method to produce a consistent rate on the net investment in lease finance. Rental income
from assets given in operating lease is recognized on an accrual basis over the lease period.
5.16 Foreign currencies translation
Foreign currency transactions are converted into Rupees applying the exchange rate at the date of the
respective transactions. Monetary assets and liabilities in foreign currencies including assets/liabilities
of foreign branches, subsidiaries and joint ventures are translated into Rupees at the rates of exchange prevailing
at the balance sheet date. Forward exchange contracts are valued at rates applicable to their respective
maturities.
Profit and loss account balances of foreign branches, subsidiaries and joint venture are translated at average
exchange rate prevailing during the year. Gains and losses on translation are included in the profit and loss
account except net gain arising on translation of net investment in foreign branches, subsidiaries and joint venture,
which is credited to an exchange equalization reserve reflected under reserves.
Items included in the financial statements of each of the Group's entities are measured using the currency of the
primary economic environment in which the entity operates (the functional currency). The consolidated financial
statements are presented in the Pak Rupees which is the bank's functional and presentation currency.
5.17 Business combinations and goodwill
Business combinations are accounted for using the purchase method of accounting. This involves recognising
identifiable assets (including previously unrecognised intangible assets) and liabilities (including contingent
liabilities and excluding future restructuring) of the acquired business at fair value. Any excess of the cost of
acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. If the cost of
acquisition is less than the fair value of the identifiable net assets acquired, the discount on acquisition is
recognised directly in the income statement in the year of acquisition.
5.18 Provision for off balance sheet obligations
Provision for guarantees, claims and other off balance sheet obligations is made when the Group has legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle
the obligation and a reliable estimate of amount can be made. Charge to profit and loss account is stated net of
expected recoveries.
5.19 Off setting
Financial assets and financial liabilities are only set off and the net amount is reported in the financial statements
when there is a legally enforceable right to set off and the Group intends either to settle on a net basis, or to realize
the assets and to settle the liabilities simultaneously.
5.20 Fiduciary assets
Assets held in a fiduciary capacity are not treated as assets of the Group in the balance sheet.
Note 2006 2005

Rupees in ‘000
6. CASH AND BALANCES WITH TREASURY BANKS
In hand
Local currency 5,001,665 5,030,502
Foreign currency 1,540,702 1,517,370
6,542,367 6,547,872
With State Bank of Pakistan in
Local currency current account 6.1 34,314,554 23,817,928
Local currency deposit account 29 29
34,314,583 23,817,957

Foreign currency deposit account 6.2 3,578,722 4,075,481
Foreign currency collection account 193,307 1,432,952
Foreign currency placement account 6.3 30,442,750 29,898,000
35,407,686 36,764,927
With other central banks in
Foreign currency deposit account 6.5 1,149,879 859,475
2,597,989 4,221,372
78,862,625 71,352,128
6.1 This includes statutory liquidity reserves maintained with the SBP under Section 22 of the Banking
Companies Ordinance, 1962.
6.2 These represent mandatory reserves maintained in respect of foreign currency deposits under FE-25
scheme, as prescribed by the State Bank of Pakistan.
6.3 This represents US Dollar placements and carry interest rate at 6.71% to 7.46% per annum (2005:
5.31% to 6.53%) and mature within six months
.
6.4 These balances pertain to the foreign branches and are held with central banks of respective countries.
These include balances to meet the statutory and central banks' regulatory requirements.
6.5 These balances pertain to the foreign branches and are held with central banks of respective countries.
These include balances to meet the statutory and central bank regulatory requirements. These carry
mark-up at the rate of 4.5% to 5.05% per annum (2005: 3.63%).
7. BALANCES WITH OTHER BANKS

In Pakistan
On current account 194,771 -
On deposit account 165,208 176,386
Outside Pakistan
On current account 1,029,343 2,950,565
On deposit account 7.1 40,023,224 28,472,152
41,052,567 31,422,717
41,412,546 31,599,103
7.1 These includes various deposits with correspondent banks and carry mark-up rates ranging from 0.015% to 8%
per annum (2005:0.005% to 7% per annum).
8. LENDINGS TO FINANCIAL INSTITUTIONS

2006 2005
Call money lendings 8.2 8,165,350 6,463,604
Repurchase agreement lendings (Reverse Repo) 8.3 & 8.4 14,998,732 10,078,942
8.1 23,164,082 16,542,546
8.1 Particulars of lending

In foreign currencies - -
23,164,082 16,542,564
8.2 These carry mark-up at rates ranging from 10.05% to 11.25% per annum (2005:7.75% to 9.75% per annum).
8.3.1 Securities held as collateral against lendings to financial institutions.

2006 2005
Held by Further Total Held by Further Total
bank given as bank given as
collateral collateral
Rupees in ‘000
Market Treasury Bills 11,363,732 - 11,363,732 6,753,942 - 6,753,942

14,998,732 - 14,998,732 10,078,942 - 10,078,942
8.4 Market value of the securities under repurchase agreement lendings amount to Rs.14,868 million
(2005:Rs,10,276 million)
9. INVESTMENTS
9.1 INVESTMENTS BY TYPES:

2006 2005
Note
Held by Given as Total Held by Given as Total
bank collateral bank collateral
Rupees in ‘000
Held-for-trading securities
Ordinary shares of listed companies 405,201 - 405,201 243,444 - 243,444
Available -for-sale-securities
Ordinary shares of listed companies 1,426,566 - 1,426,566 1,232,195 - 1,232,195
Ordinary shares of unlisted companies 331,641 - 331,641 433,864 - 433,864
1,758,207 - 1,758,207 1,666,059 - 1,666,059
Market Treasury Bills 50,524,649 381,964 50,906,613 54,238,995 2,845,789 57,084,784

Preference shares 398,184 - 398,184 463,500 - 463,500
Pakistan investment bonds 3,154,718 - 3,154,718 7,923,813 - 7,923,813
Federal investment bonds 940,000 - 940,000 1,142,465 - 1,142,465
Debentures, Bonds, Participation term
Certificates and Term Finance Certificates 8,373,727 - 8,373,727 7,029,616 - 7,029,616
Investment in mutual funds 1,145,369 - 1,145,369 699,399 - 699,399
Investment outside Pakistan 463,295 - 463,295 463,295 - 463,295
National Investment Trust Units 5,667,018 - 5,667,018 5,060,656 - 5,060,656
Total available-for-sale securities 72,425,167 381,964 72,807,131 78,687,798 2,845,789 81,533,587

- -
Held-to-maturity securities - -
Government Compensation Bonds 2,331,182 - 2,331,182 2,477,200 - 2,477,200
Provincial Government Securities 36,513 - 36,513 36,513 - 36,513
Market Treasury Bills 381,473 - 381,473 - - -
GoP Foreign Currency Bonds 10,445,224 - 10,445,224 9,457,014 - 9,457,014
Foreign Government Securities 5,693,075 - 5,693,075 6,057,028 - 6,057,028
Debentures, Bonds, Participation term - - -
Certificates & Term Finance Certificates 9.7 4,595,963 - 4,595,963 6,000,021 - 6,000,021
Certificates of investment 9.16 3,172,000 - 3,172,000 - - -
Total Held to maturity securities 9.3 38,629,469 - 38,629,469 36,127,683 - 36,127,683
Investments in associates 9.9 1,132,790 - 1,132,790 1,157,776 - 1,157,776
Investments in joint ventures 9.10 1,950,628 - 1,950,628 1,578,961 - 1,578,961

Investments in subsidiaries 9.11 3,245 - 3,245 3,245 - 3,245
Investments at cost 114,546,500 381,964 114,928,464 117,798,907 2,845,789 120,644,696

Less: provision for diminution -
in value of investments 9.12.1 (1,255,785) - (1,255,785) (1,965,003) - (1,965,003)
investments (net of provisions) 113,290,715 381,964 113,672,679 115,833,904 2,845,789 118,679,693
Deficit on revaluation of
Held-for-trading securities 9.14 (4,463) - (4,463) (1,493) - (1,493)
Surplus/(deficit) on revaluation of
Available-for-sale securities 20.2 27,072,030 (179) 27,071,851 38,448,272 - 38,448,272
Total investments at market value 140,358,282 381,785 140,740,067 154,280,683 2,845,789 157,126,472
Note 2006 2005

Rupees in ‘000
9.2 Investment by segments
Market Treasury Bills 51,288,086 57,084,784

Pakistan Investment Bonds 9.4 15,128,757 20,023,720
Federal Investment Bonds 9.5 940,000 1,142,465
Others
- Government Compensation Bonds 9.15 2,331,182 2,477,200
- GoP Foreign Currency Bonds 10,445,224 9,457,014
80,133,249 90,185,183
Provincial Government Securities 36,513 36,513

Foreign Government Securities 5,693,075 6,057,028
Fully Paid Up Ordinary Shares

- Listed Companies 9.15 1,831,767 1,475,639
- Unlisted Companies 9.15 331,641 433,864
2,163,408 1,909,503
Investments in mutual funds 9.15 1,145,369 699,399

National Investment Trust Units 9.6 5,667,018 5,060,656
Preference Shares 9.15 398,184 463,500
Certificates of Investment 9.16 3,172,000 -

Certificates and Term Finance Certificates
- Listed 9.15 1,062,972 669,911
- Unlisted 9.7&9.15 11,906,718 12,359,726
12,969,690 13,029,637
Investment outside Pakistan 9.8 463,295 463,295

Investments in Associates 9.9 1,132,790 1,157,776
Investments in Joint Ventures 9.10 1,950,628 1,578,961
Investments in Subsidiaries 9.11 3,245 3,245
Total Investment at cost 114,928,464 120,644,696

Less: Provision for diminution in value of investments 9.12.1 (1,255,785) (1,965,003)
Investments (Net of Provisions) 113,672,679 118,679,693
Deficit on revaluation of held-for-trading securities 9.14 (4,463) (1,493)
Surplus on revaluation of Available-for-sale securities 20.2 27,071,851 38,448,272
Total investments at market value 140,740,067 157,126,472
9.3 Market value of held-to-maturity investments is Rs. 36,558 million (2005: Rs.33,358 million).
9.4 These include Pakistan Investment Bonds amounting to Rs.75 million (2005: Rs.75 million) against demand
loans and TT/DD discounting facilities.
9.5 These include Federal Investment Bonds amounting to Rs.940 million (2005: Rs.940 million) provided to
Payoff liabilities relating to former MBL.
9.6 NIT Units
Includes 365,284,216 NIT units in respect of which Government of Pakistan (GoP) issued a letter of comfort (LoC)
dated June 20, 2006 stating that on bank's willingness to continue holding the units upto June 30, 2007 from the
date of LoC, NIT will be facilitated to redeem the units at Rs.13.70 per unit. During 2005 on the directives of MoF,
the bank acquired 5,542,620 units from small sized LoC holders for a sum of Rs.205.077 million. In accordance
with SBP's concurrence vide their letter no. BSD/SU-15/503/1504/2005 dated March 16, 2005, these units have
been valued at market value (repurchase price) aggregating to Rs.16,632 million (2005: Rs.18,684 million). Also,
during 2005, the Privatisation Commission of the GoP offered all the NIT LoC holders, including the bank, the
following two options under the scheme of Privatisation of the Trust:
(a) Right to manage the fund represented by the respective LoC holder's portion of the assets / shares and pay for
the management rights as per the terms contained in the "Scheme" (scheme for the split-sell and settlement of
NIT under GoP's privatisation campaign); or
(b) The LoC holder's holding of NIT Units would continue to be managed by NIT as part of a separate split fund.
The bank has conveyed its concurrence to option (a).
9.6.1 Rating of NIT mutual fund is 4 Star by PACRA.
9.7 Term Finance Certificates, Debentures, Bonds and Participation Term Certificates include Rs.705 million (2005:
Rs.741 million) which are considered non-performing.
9.8 Bank Al-Jazira
The bank holds 6,562,500 (2005: 875,000) shares in Bank Al-Jazira incorporated in the Kingdom of Saudi Arabia,
being 5.83% (2005: 5.83%) holding in total equity. From 2005, in accordance with SBP's concurrence vide their
letter no. BSD/SU-13/331/685/2006 dated February 17, 2006, the investment has been valued at market value
using closing price as quoted on the Saudi Stock Exchange aggregating Rs. 13,957 million (2005: Rs. 22,111
million) (Rating: BBB + by Fitch rating).
Number of Percentage
9.9 Investments in associates holding Note 2006 2005
shares
Rupees in ‘000
Un-quoted
Pakistan Emerging Venture Limited 12,500,000 33.33 64,415 64,415
First Credit And Investment Bank Limited 5,979,085 50.00 224,777 214,508
Information System Associates Limited 2,300,000 28.07 1,719 1,719
National Fructose Company Limited 1,300,000 39.50 6,500 6,500
Pakistan Insulation Limited 494,500 24.79 695 695
Ali Textile (Jhang) Limited 719,500 25.21 7,195 9,265
Venture Capital Fund Management 33,333 33.33 - -
Ashraf Sugar Mills Limited 2,059,271 20.44 - -
Kamal Enterprises Limited 11,000 20.37 - -
Mehran Industries Limited 37,500 32.05 - -
Qurell Cassettes Limited 46,250 30.83 - -
Tharparkar Sugar Mills Limited 2,500,000 21.50 - -
Youth Investment Promotion Society 644,508 25.00 - -
Khushali Bank 400 23.45 400,000 400,000
Dadabhoy Energy Supply Company Limited 9,900,000 33.00 32,105 32,105
K-Agricole Limited 5,000 20.00 - -
New Pak Limited 200,000 20.00 - -
Pruduntial Fund Management 150,000 20.00 - -
737,406 729,207
Quoted
National Fibres Limited 17,119,476 20.19 - -
Asian Leasing Company Limited 2,863,600 27.39 - 3,866
Taha Spinning Mills Limited 833,800 20.59 2,501 2,501
Kohat Textile Mills Limited 2,906,900 33.03 9.9.3 - 29,069
Land Mark Spinning Mills Limited 3,970,960 32.75 39,710 39,710
S.G. Fibres Limited 3,754,900 25.03 218,535 218,535
Nina Industries Limited 4,906,000 20.27 49,060 49,060
First National Bank Modaraba 7,500,000 30.00 85,578 85,828
395,384 428,569
1,132,790 1,157,776
710,355 700,336
9.9.1 Market value of quoted associates amount to Rs. 305.327 million (2005: Rs.356.637 million).
9.9.2 Associates with zero carrying amount, represent the investment acquired from former NDFC which have negative
equity or whose operations are closed at the time of amalgamation.
9.9.3 During 2006, Kohat Textile Mills issued right shares which the bank did not subscribe. As a result the bank's holding
reduced from 33.03% to 13.98%. Accordingly investment has been classified in ordinary shares of listed
companies.
9.9.4 The details of break-up value based on latest available financial statements of un-quoted investment in associates
are as follows: Break-up
value of
bank’s share
Year ended Rs. in ‘000
Pakistan Emerging Venture Limited June 30, 2006 15,421
First Credit And Investment Bank Limited (FCIBL) December 31, 2006 258,247
Information System Associates Limited June 30, 2006 3,788
Pakistan Insulation Limited June 30,2001 2,630
Ali Textile (Jhang) Limited September 30, 2001 10,049
Ashraf Sugar Mills Limited September 30, 2004 (17,199)
Mehran Industries Limited June 30, 2001 5,681
Tharparkar Sugar Mills Limited September 30, 2001 (83,140)
Khushhali Bank December 31, 2005 410,372
Dadabhoy Energy Supply Company Limited June 30, 2006 79,318
2006 2005
9.10 Investment in joint ventures
United National Bank Limited (UNBL) 9.10.1 & 9.10.2 1,892,148 1,548,961
National Fullerton Asset Management (NAFA) 9.10.1 & 9.10.3 58,480 30,000
1,950,628 1,578,961
9.10.1 Movement Schedule for Associate and Joint Ventures
2006 2005
Associate Joint Ventures Associate Joint Ventures
FCIBL NAFA UNBL FCIBL NAFA UNBL
Opening Balance 214,508 30,000 1,548,961 204,369 - 1,428,413
Addition - 37,500 - - 30,000 -
Share of Profit/(loss)for the year 10,268 (9,020) 138,316 10,139 - 90,531
Exchange adjustment - - 204,871 - - 30,017
Closing Balance 224,776 58,480 1,892,148 214,508 30,000 1,548,961
9.10.2 Under a joint venture agreement, the bank holds 13.5 million ordinary shares (45%) and United Bank Limited
(UBL) holds 16.5 million ordinary shares (55%) in the venture. In addition to ordinary shares, four preference
shares categories as "A", "B", "C" and "D" have been issued and allotted. The "B" and "D" category shares are
held by the bank and category "A" and "C" are held by UBL. Dividends payable on "A" and "B" shares are related to
the ability of the venture to utilize tax losses that have been surrendered to it on transfer of business from the bank
or UBL as appropriate. Dividends payable on "C" and "D" shares are related to loans transferred to the venture by
the bank or UBL that have been written-off or provided for at the point of transfer and the ability of the venture to
realize in excess of such loan value. Upto December 31, 2006 the bank's share of undistributed profits amounts to
Rs.293.043 million (2005: Rs.142.349 million).
9.10.3 The company has been set up for the purpose of providing asset management services and investment advisory
services with a paid-up capital of Rs.250 million (2005: Rs.100 million) as a joint venture between the bank, NDLC-
IFIC Bank Limited and Alexandra Fund Management PTE Limited. The bank has 27% (2005: 30%) holding as at
December 31, 2006.
9.10.4 Investments of the Group in First Credit & Investment Bank Limited (the associated company), United National
Bank Limited and National Fullerton Assets Management (Joint Venture companies) has been accounted for
under equity method of accounting as at December 31, 2006 in accordance with the treatment specified in
International Accounting Standard 28 "Accounting for investments in Associates” and International Accounting
Standard 31 "Investment in Joint Venture". As per Khushhali Bank Ordinance, 2000, Khushhali Bank is not allowed
distribute its profits as dividends to its shareholders. Based on this fact, investment in Khushhali Bank (associated
company) is not accounted for using the equity method of accounting.
9.11 Investments in Subsidiaries

Percentage 2006 2005
holding Note Rupees in ‘000
National Agriculture & Storage Company Limited 100.00 2,000 2,000

Cast-N-Link Products Limited 76.51 1,245 1,245
3,245 3,245
- -
9.12 Particulars of provision for diminution in value of investments

2006 2005
Rupees in ‘000
Opening Balance 1,965,003 2,249,295

Reversals (709,461) (245,881)
(707,105) (245,881)
Amount written off (2,113) (38,411)
9.12.1 Particulars of provision in respect of type and segment

Available-for-sale securities
Ordinary Shares of unlisted companies 125,392 179,853
Certificates and Term Finance Certificates 704,713 1,324,465
Associates 9.9 422,435 457,440
Subsidiaries 9.11 3,245 3,245

1,255,785 1,965,003
9.13 Quality of Available-for-Sale Securities
Information relating to quality of available for sale securities is given in Annexure”I” and is an integral part of these
9.14 Unrealized loss on revaluation of

Investments classified as held-for-trading
Ordinary shares of listed companies (4,463) (1,493)
9.15 Information relating to investments in shares of listed and unlisted companies, redeemable capital and bonds
is given in Annexure “I” and is an integral part of these financial statements.
9.16 These carry mark-up at the rate from 11.25% to 14.33% (2005:Nil) per annum.
10. ADVANCES
Note 2006 2005
Rupees in ‘000
Loans, cash credits, running finances etc.
In Pakistan 10.9 304,164,016 262,095,537
Outside Pakistan 26,421,169 22,093,891
330,585,185 284,189,428
Net investment in finance lease
In Pakistan 10.2 558,883 204,243
Outside Pakistan - -
558,883 204,243
Bills discounted and purchased (excluding treasury bills)
Payable in Pakistan 2,502,819 2,387,740
Payable outside Pakistan 14,881,699 12,471,568
17,384,518 14,859,308
Margin Financing 10.8 187,266 68,039
Advances - gross 10.1 348,715,852 299,321,018

Less: provision for non-performing advances 10.4 (32,260,052) (30,584,032)
Advances - net of provision 316,455,800 268,736,986
10.1 Particulars of advances - gross
10.1.1 In local currency 307,412,984 264,755,559

In foreign currencies 41,302,868 34,565,459
348,715,852 299,321,018
10.1.2. Short term (for upto one year) 202,063,151 187,514,925

Long Term (for over one year) 146,652,701 111,806,093
348,715,852 299,321,018
10.2 Net investment in finance lease

2006 2005
Later than Later than
Not later one and Over Not later one and Over
than one less than five than one less than five
year five years year Total year five years year Total
Rupees in ‘000
Lease rentals receivable 218,927 350,936 - 569,863 64,870 144,367 - 209,237
Residual value - 95,212 - 95,212 - 38,948 - 38,948
Minimum lease payments 218,927 446,148 - 665,075 64,870 183,315 - 248,185
Financial charges for future
periods 57,154 49,038 - 106,192 19,417 24,525 - 43,942
Present value of minimum
lease payments 161,773 397,110 - 558,883 45,453 158,790 - 204,243
The leases executed are for a term of 3 to 5 years. Security deposit is generally obtained upto 10% of the cost of
leased assets at the time of disbursement. The Group requires the lessees to insure the leased assets in favour of
the Group and maintained financial ratios, as required under the SBP Prudential Regulations for Non-Banking
Finance Companies. Additional surcharge is charged on delayed rentals. The fixed return implicit in these ranges
from 10.75% to 18% and KIBOR + 2% (2005: 10.75% to 18% and KIBOR + 2%) per annum.
10.3 Advances include Rs.36,260 million (2005: 33,738 million )which have been placed under non-performing status
as detailed below:
2006 2006 2006
Classified Advances Provision Required Provision Held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
Rupees in ‘000
Category of Classification
Other Assets Especially Mentioned 396,998 - 396,998 - - - - -

Substandard 2,602,626 - 2,602,626 597,408 - 597,408 597,408 597,408
Doubtful 1,877,859 - 1,877,859 828,886 - 828,886 828,886 828,886
Loss 30,820,501 561,902 31,382,403 28,042,748 59,630 28,102,378 28,042,748 59,630 28,102,378
35,697,984 561,902 36,259,886 29,469,042 59,630 29,528,672 29,469,042 59,630 29,528,672
10.4 Particulars of provision against non-performing advances

2006 2005
Domestic Overseas Total Domestic Overseas Total
Opening Balance 28,388,730 2,195,302 30,584,032 28,372,354 678,424 29,050,778

Exchange adjustments 2,851 19,282 22,133 (140) (18,181) (18,321)
Charge for the year 5,225,418 622,648 5,848,066 3,115,568 1,535,059 4,650,627
Reversal during the year (2,772,343) - (2,772,343) (2,203,888) - (2,203,888)
2,453,075 622,648 3,075,723 911,680 1,535,059 2,446,739
Amounts written off 10.5 (705,125) - (705,125) (895,164) - (895,164)
Other movements (610,859) (105,852) (716,711) - - -
Closing balance 29,528,672 2,731,380 32,260,052 28,388,730 2,195,302 30,584,032
10.4.1 Particulars of provisions against non-performing advances:

2006 2005
Rupees in ‘000
In local currency 29,469,042 2,493,782 31,962,824 28,237,053 1,906,925 30,143,978
In foreign currencies 59,630 237,598 297,228 151,677 288,377 440,054
29,528,672 2,731,380 32,260,052 28,388,730 2,195,302 30,584,032
Note 2006 2005

Rupees in ‘000
10.5 Particulars of write offs:
10.5.1 Against Provisions 10.4 705,125 895,164

Directly charged to Profit & Loss account 5,284 23,069
710,409 918,233
10.5.2 Write Offs of Rs. 500,000 and above 10.6 687,167 896,526
Write Offs of Below Rs. 500,000 23,242 21,707
710,409 918,233
10.6 Details of loan write off of Rs. 500,000/- and above:
In terms of sub-section 3 of section 33A of the Banking Companies Ordinance, 1962 the statement in respect
of written-off loans or any other financial relief of Rs. 500,000 or above allowed to a person(s) during the year
ended December 31, 2006 is given in Annexure-II.
Note 2006 2005

Rupees in ‘000
10.7 Particulars of loans and advances to Directors, Associated Companies, etc.:

Debts due by directors, executives or officer & staff of the bank or any of
them either severally or jointly with any other persons
Repayments (426,118) (536,752)
Debts due by companies or firms in which the directors of the bank

are interested as directors, partners or in the case of private
companies as members
Balance at beginning of year 119,319 119,896
Loans granted during the year 222,759 -
Repayments (119,319) (577)
Balance at end of year 222,759 119,319
Debts due by controlled firms, managed

modarabas and other related parties
Loans granted during the year 38,755 698,845
Repayments (408,687) (402,855)
10.8 These are secured against shares of listed companies, market value of which amounted to Rs.214.359 million
(2005: Rs.195.537 million) at the balance sheet date. These carry mark-up at the rate of 3 months KIBOR +
4% and 6 months KIBOR + 3% (2005: 3 months KIBOR + 4%)
10.9 This includes Rs.138.187 million (2005: Rs.107.346 million) on account of discounting of negotiable instruments.
11. OPERATING FIXED ASSTES

Capital work-in-progress 11.1 378,917 319,051
Property and equipment 11.2 9,330,976 9,181,421
Intangible assets 11.4 30,045 21,382
9,739,938 9,521,854
11.1 Capital work-in-progress

Civil works 326,066 301,378
Equipments 4,419 -
Advances to suppliers and contractors 48,432 17,673
378,917 319,051
11.2 Property and equipment
Book
Rupees in ‘000
Owned
Land
- freehold 2,781,313 - - 2,781,313 - - - 2,781,313 Nil

-
- leasehold 2,766,782 - 31,404 2,798,186 - - - 2,798,186 Nil
-
Buildings on land:
Furniture and fixtures 1,137,620 - 94,707 1,229,608 760,639 49,048 808 ,080 421,528 10% to 30%on book
(2,719) (1, 607) value and 20% on
furnishing limit to
executives
equipments 1,063,803 - 22 1,328 1,285,023 825 ,203 12 8, 804 953,953 331,070 33.33% on cost
(108) (54)
Electrical & office
equipments 1,324,807 - 1 41,391 1,460,644 863 ,416 1 21,9 12 981,052 479,592 20% on book value
(5,554) (4, 276)
Vehicles 370,902 - 71,448 411,988 158,147 47, 708 186,560 225,428 20% on cost
(30,362) (1 9.295)
12,433,573 - 657,660* 1 3,052,490 3,323 ,448 4 71, 836 3,770,052 9,282,438

(38,743) (2 5,232)
Assets held under

finance lease
Vehicles 1 28,921 - 2,169 131,090 59,289 24,529 83,818 47,272
Office equipment 2,249 - - 2,249 585 398 983 1,266 20% on cost
2006 12,564,743 - 65 9,829 13,185,829 3,3 83 ,322 4 96, 763 3,854,853 9,330,976
(38,743) (2 5, 232)
* This includes fixed assets amounting to Rs. 5.615 million (2005: Nil) acquired from Corporate and Industrial Restructuring Corporation (CIRC),
consequent upon its dissolution with effect from September 22, 2006.
Book
Rupees in ‘000
Owned
Land
- freehold 2,781,313 - - 2,781,313 - - - 2,781,313 Nil

-
- leasehold 2,766,782 - - 2,766,782 - - - 2,766,782 Nil
-
Buildings on land:
- freehold 1,718,048 - 28,745 1,746,793 380,115 69, 423 449,5 38 1,297,255 5% on book value
- leasehold 1,224,160 - 1 7,393 1,241,553 213,495 53,010 266,505 975,048 5% on book value
Furniture and fixtures 1,038,823 - 103,732 1,137,620 719,720 45,895 760 ,639 376,981 10% to 30%on book
(4,935) (4976) value and 20% on
furnishing limit to
executives
Computer & peripheral
equipments 905,359 - 159,305 1,063,803 592,930 232,740 825,203 238,600 33.33% on cost
(861) ( 467)
Electrical & office
(2,384) (1,916)
Vehicles 227,035 - 170,713 370,902 119,034 63,830 158,147 212,755 20% on cost
(26,846) (24,717)
11,741,626 - 726,973* 12,433,573 2,781,657 573,867 3,323,448 9,110,125

(35,026) (32,076)
Under finance lease
Vehicles 120,235 - 20,350 128,921 65,538 1,190 59,289 69,632 20% on cost
(11,664) (7,439) -
Office equipment 2,249 - - 2,249 164 421 585 1,664
2005 11,864,110 - 747,323 12,564,743 2,847,359 575, 478 3,383,322 9,181,421

(46,690) ( 39,515)
11.3 In the year 2004, certain of the bank's properties were revalued by M/s Younus Mirza & Co. on the basis of market
value which resulted in net surplus of Rs.25.802 million over the book value of the assets.
In the year 2003, certain bank's properties were revalued by M/s Younus Mirza & Co. and M/s Iqbal A. Nanji & Co.
on the basis of market value which resulted in net surplus of Rs.547 million over the book value of the assets.
In the year 2002, the bank's properties were revalued by M/s Younus Mirza & Co. on the basis of market value
which resulted in net surplus of Rs.1,199.625 million over the book value of the assets.
11.4 Intangible assets Cost Accumulated amortisation

Book
At At At Charge for At Value at
January Additions/ December January the year/ December December Rate of
1, 2006 (deletions) 31, 2006 1, 2006 (deletions) 31, 2006 31. 2006 Amortisation
Rupees in ‘000
Computer Software 15,023 12,737 27,760 7,309 3,609 10,918 16,842 33.33% on Cost
Website 1,041 - 1,041 1,041 - 1,041 - 33.33% on Cost
Room & Membership Card 12,591 - 12,591 - - - 12,591
Others 2,601 - 2,601 1,524 465 1,989 612 20% on Cost
2006 31,256 12,737 43,993 9,874 4,074 13,948 30,045
Cost Accumulated amortisation

Book
At At At Charge for At Value at
January Additions/ December January the year/ December December Rate of
1, 2005 (deletions) 31, 2005 1, 2005 (deletions) 31, 2005 31. 2005 Amortisation
Rupees in ‘000
Computer Software 8,922 6,101 15,023 4,125 3,184 7,309 7,714 33.33% on Cost
Website 1,041 - 1,041 962 79 1,041 - 33.33% on Cost
Room & Membership Card 12,591 - 12,591 - - - 12,591
Others 2,601 - 2,601 1,262 262 1,524 1,077 20% on Cost
2005 25,155 6,101 31,256 6,349 3,525 9,874 21,382
11.5 Had the revaluation not been carried out, the net book value of the revalued assets at December 31,
2005 would have been as follows: Land Buildings on land Total
Freehold Leasehold Freehold Leasehold
Rupees in ‘000
284,179 369,986 109,917 107,715 871,797
11.6 Carrying amount of temporarily idle property and equipment as at December 31, 2006 is Rs. Nil
(2005: Rs. 400 million)
11.7 Details of disposals of fixed assets
Details of assets whose original cost or the book value exceeds rupees one million or two hundred fifty
thousand rupees, whichever is lower are given below:
Particulars of Original Book Sale Profit/ Mode of Particulars of Purchaser
assets cost value proceeds (loss) Disposal
Rupees in ‘000
As per
Motor Vehicle 939 751 751 - service rules Mr. Hanif Bux - EVP
on retirement
As per
Motor Vehicle 849 509 509 - service rules Mr. Raheemuddin - SVP
on retirement
As per
Motor Vehicle 849 396 396 - service rules Mr. S. Javed Ali Nosha - SVP
on retirement
As per
Motor Vehicle 849 679 679 - service rules Mr. Yousuf Hussain Jaffri - SVP
on retirement
As per
Motor Vehicle 849 580 580 - service rules Mr. Abid Mahmood - SVP
on retirement
Motor Vehicle 8,950 7,217 7,661 443 Negotiation Pakistan Transport Network
Motor Vehicle 1,003 651 865 213 Negotiation Mr. Agha Ashraf
Motor Vehicle 862 280 280 - Negotiation Mr. Amir Zaidi
Office equipment 2,069 353 800 447 Tender M/s Merin (pvt.) Ltd.
Other assets(having book

As per
value of less than service rules
Rs. 250,000 and cost of 21,524 1,741 9,649 7,907 on retirement/
Various
less than Rs. 1,000,000) Auction
38,743 13,157 22,170 9,010

12. OTHER ASSETS Note 2006 2005

Rupees in ‘000
Income/mark-up accrued in local currency 7,685,121 6,812,452

Income/mark-up accrued in foreign currencies 1,490,816 1,243,628
Advances, deposits, advance rent and other prepayments 804,086 717,859
Advance taxation (payments less provisions) 21.4.2 8,802,180 9,466,490
Receivable from CIRC 12.1 278,501 278,501
Assets acquired from CIRC 12.2 817,667 -
Branch Adjustment Account 128,552 -
Un-realized gain on forward foreign exchange contracts 126,371 137,520
Commission receivable 1,791,556 1,301,156
Stationary and stamps on hand 220,939 199,148
Barter trade balance 182,503 182,503
Receivable on account of Government transactions 12.3 323,172 323,172
Receivable from Government under VHS scheme 12.4 412,561 437,211
Less: amount charged / provision (412,561) (437,211)
Receivable from pension fund 34.1 2,951,933 2,523,668

Prize bonds on hand 320,023 297,755
Receivable from brokers - 616,218
Others 3,421,833 2,457,416
29,345,253 26,557,486
Less: Provision held against other assets
Income/mark-up accrued in local currency/foreign currencies 296,592 335,592

Stationary and stamps on hand 51,200 51,200
Receivable on account of Government Transactions 323,172 323,172
Others 918,140 900,408
12.5 1,771,607 1,792,875
Other assets (net of provision) 27,573,646 24,764,611
12.1 Upon dissolution of Corporate and Industrial Restructuring Corporation (CIRC), and take over by the bank with
effect from September 22, 2006 the said amount represents receivable from GoP.
12.2 During the year the bank has acquired non-performing assets from Corporate and Industrial Restructuring
Corporation (CIRC), consequent upon its dissolution with effect from September 22, 2006 vide Corporate and
Industrial Restructuring Corporation (Dissolution) Order 2006 dated September 11, 2006. The book value of non-
performing assets after adjustment of down payment of Rs 150 million shall be repayable in three annual
installments of Rs 222.555 million each upto September 2009. Further the bank under fiduciary duty shall collect
the sale proceeds of disposal of units, the sale proceed of which is approved between CIRC and obligors of non-
performing assets, amounting to Rs 471.307 million and transfer them to GoP on expiry of each quarter subject to
adjustments/ reimbursements for reasonable expenses incurred in relation to steps and legal action taken.
12.3 This represents amount receivable from Government of Pakistan on account of encashment of various
instruments handled by the bank for Government of Pakistan as an agent of SBP.
12.4 This represents payments made under the Voluntary Handshake Scheme (VHS), recoverable from Government
of Pakistan. Due to uncertainty about its recoverability, although a claim has been lodged, full amount has been
provided for.
Note 2006 2005

Rupees in ‘000
12.5 Provisions against other assets

Reversals (39,000) -
13. BILLS PAYABLE

In Pakistan 10,549,446 1,714,500
Outside Pakistan 56,216 26,656
10,605,662 1,741,156
14. BORROWINGS
In Pakistan 11,069,740 8,993,770

Outside Pakistan 1,612,672 348,326
12,682,412 9,342,096
14.1 Particulars of borrowings with respect to currencies

In foreign currencies 1,612,672 348,326
12,682,412 9,342,096
14.2 Details of borrowings Secured / Unsecured
Secured
Borrowings from State Bank of Pakistan
Under export refinance scheme / LTF * 7,580,045 4,034,703
Under locally Manufactured Machinery (LMM) scheme 1,160 3,408
Finance to payoff liabilities relating to former MBL 14.2.1 564,000 752,000
Others 66,907 66,907
8,212,112 4,857,018
Repurchase agreement borrowings 504,710 2,783,201

8,716,822 7,640,219
Unsecured
Call borrowings 3,441,005 998,326
Overdrawn nostro accounts 453,785 632,751
Others 70,800 70,800
3,965,590 1,701,877
12,682,412 9,342,096
14.2.1 This comprises of balance of loan of Rs.940 million extended in 1999. The loan is interest free and is
repayable in five equal annual installments after an initial grace period of five years.
14.2.2 Mark-up/interest rates and other terms are as follows:
- Export refinance loans from SBP are at the rate of 6.5% per annum (2005: 7.5% per annum).
- Locally Manufactured Machinery Loans from SBP are at the rate of 11% per annum (2005: 8% to 9.5%
per annum).
- Secured borrowings "Others" from SBP are interest free.
- Call borrowings carry interest ranging from 7.75% to 10.20% per annum (2005: 1.4% to 8.15% per annum)
- Overdrawn nostro accounts carry interest at the rate of 1% to 5% per annum (2005: 1% to 5% per annum).
* Long Term Financing under Export Oriented Project

- Repurchase agreement borrowings carry mark-up at the rate of 8.5% per annum (2005: 3% to 8.4%
per annum).
- Unsecured borrowings "Others" carry interest at the rate of 10% per annum (2005: 10% per annum).
14.2.3 The group has obtained facilities under repurchase agreements and call borrowings from other banks
amounting to Rs. 383.333 million. Against these borrowings carrying amounts of assets kept as collateral
are as follows:
Note 2006 2005
Rupees in ‘000
Charge on lease receivables 155,102 155,102

Promissory note 276,970 276,970
Term finance certificates 101,987 101,987
Pakistan Investment Bonds and certificates of investments 234,791 304,103
15. DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits 100,054,476 80,913,734

Savings deposits 170,234,938 165,514,570
Current accounts - Remunerative 54,352,618 54,497,426
Current accounts - Non- remunerative 119,604,794 102,492,003
444,246,826 403,417,733
Financial Institutions
Remunerative deposits 39,196,100 38,174,088

Non-remunerative deposits 18,573,785 21,604,526
57,769,885 59,778,614
15.1 502,016,711 463,196,347
15.1 Particulars of deposits

In foreign currencies [including deposits of foreign branches
of Rs. 86,816 million including vostro balances of Rs. 1,069 million
(2005:Rs. 81,124 million including vostro balances of Rs. 2,383 million)] 111,441,298 106,482,895
502,016,711 463,196,347
16. LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

2006 2005
Minimum Financial Principal Minimum Financial Principal

lease charges for outstanding lease charges for outstanding
payments future periods payments future periods
Rupees in ‘000
Not later than one year 9,314 1,260 8,054 9,799 1,856 7,943
Later than one year and
not later than five years 7,187 905 6,282 1,801 234 1,567
Over five years - - - 12,131 1,464 10,667
16,501 2,165 14,336 23,731 3,554 20,177
The group has entered into lease agreements with various leasing companies for lease of vehicles. Lease rentals
are payable in quarterly installments. Financial charges included in lease rentals are determined on the basis of
discount factors applied at the rates ranging from 12% to 16% and KIBOR plus 2%. (2005: 12% to 16% and KIBOR
plus 2%). At the end of lease term, the group has the option to acquire the assets subject to adjustment of security
deposits.
17. DEFERRED TAX LIABILITIES

Note 2006 2005
Deferred tax (assets) arising in respect of Rupees in ‘000
Provision for diminution in the value of investments (246,650) (463,563)

Provision against advances - general provisions (872,824) (667,424)
Other provision (103,806) (123,983)
Charge against defined benefits plans (291,768) (255,404)
Difference between accounting book value of fixed assets
and tax base (12,145) (95,643)
Provision against off-balance sheet obligation (115,222) (115,222)
Deferred tax liabilities arising in respect of (1,642,415) (1,721,239)
Excess of accounting book value of leased assets

over lease liabilities 2,026 972
Revaluation of securities 20.1 3,570,166 5,694,365
Revaluation of fixed assets 20.3 446,556 468,665
Others 273 9,329
4,019,021 6,173,331
Net deferred tax liabilities 2,376,606 4,452,092
18. OTHER LIABILITIES
Mark-up/ Return/ Interest payable in local currency 3,372,024 2,880,722

Mark-up/ Return/ Interest payable in foreign currencies 1,064,216 741,762
Unearned commission and income on bills discounted 72,207 52,965
Accrued expenses 1,543,832 976,982
Advance payments 105,062 55,801
Unclaimed dividends 8,259 5,632
Un-realized loss on forward foreign exchange contracts 35,500 -
Un-realized loss on derivative financial instruments 240,525 432,269
Provision against off-balance sheet obligations 18.1 425,824 425,824
Branch adjustment account - net - 815,417
Post retirement medical benefits 34.2 2,276,587 2,001,749
Compensated absences 34.3 1,639,708 1,521,326
Liabilities relating to:

Bangladesh (Former East Pakistan) 227,089 227,089
Barter trade agreements 8,660,061 8,505,559
Special separation packages 78,422 78,422
Benevolent fund 34.4 802,937 729,725
Gratuity Scheme 34.5 33,409 -
Staff welfare fund 686,401 748,795
10,488,319 10,289,590
Payable to GoP for NDFC amalgamation - 57,351
Payable to GOP for acquisition of assets from CIRC 12.2 673,282
Payable on account of Government transactions 34,246 73,805
Payable to brokers 89,665 72,050
Others [(including provision of Rs.178 million (2005: Rs.178 million)
for contingencies)] 5,117,034 4,001,936
27,186,290 24,405,181
2006 2005
Rupees in ‘000
18.1 Opening balance 425,824 425,824

Closing balance 425,824 425,824
18.1.1 This represents provision against non-funded exposure of borrowers where the bank feels the borrower will
not be able to meet its contractual obligations at the time of amount becoming due.
19. SHARE CAPITAL
19.1 Authorized Capital

2005 2006 Note 2006 2005
Number of Shares Rupees in ‘000
19.2 Issued, subscribed and paid up

450,504,700 568,683,295 Fully paid in Cash 5,686,832 4,505,047
590,892,700 709,071,295 Issued as fully paid bonus shares 7,090,712 5,908,927
20. SURPLUS ON REVALUATION OF ASSETS
20.1 Surplus on revaluation of fixed assets - net of tax 20.3 5,368,099 5,409,159
20.2 Surplus on revaluation of available-for-sale securities - net of tax
Federal Government Securities 47,663 32,539

Term Finance Certificates 60,310 4,128
Quoted Shares 1,748,937 2,732,396
NIT Units 11,721,554 14,031,893
Bank Al-Jazira 13,493,387 21,647,316
27,071,851 38,448,272
Deferred tax liability recognised 17 (3,570,166) (5,694,365)
28,869,784 38,163,066
20.3 Movement in surplus on revaluation of fixed assets Note 2006 2005

Rupees in ‘000
Surplus on revaluation on January 1, 5,877,824 5,944,318
net surplus on revaluation of bank’s properties during the year - -
Transferred to unappropriated profit in respect of incremental

depreciation charged during the year - net of deferred tax (41,060) (43,221)
Related deferred tax liability (22,109) (23,273)

(63,169) (66,494)
5,814,655 5,877,824
Less: Related deferred tax liability on:
Revaluation as at January 1, 468,665 491,938

Revaluation of bank’s properties during the year - -
Incremental depreciation charged during the year
transferred to profit and loss account (22,109) (23,273)
17 446,556 468,665
Surplus on revaluation of fixed assets on December 31 5,368,099 5,409,159

21. CONTIGENCIES AND COMMITMENTS
21.1 Direct credit substitutes

Includes general guarantees of indebtedness, bank acceptance
guarantees and standby letters, of credit serving as financial
guarantees for loans and securities in favor of:
345,847 2,269,358
- Government
4,885,235 504,595
- Financial institutions
24,807,965 13,012,983
- Others
30,039,047 15,786,936
21.2 Transaction-related contingent liabilities
Includes performace bonds, bid bonds, warranties, advance
payment guarantees, shipping guarantees and standby letters of credit related
To particular transactions in favor of:
- Government 18,138,591 12,488,526
- Financial institutions 30,735 -
- Others 5,484,271 9,971,136
23,653,597 22,459,662
21.3 Trade-related contingent liabilities
Letters of credit
Issued in favor of
- Government 128,295,046 69,418,144
- Financial institutions 522,542 8,121,679
- Others 31,725,396 26,211,138
160,542,984 103,750,961
21.4 Other Contingencies
Claims against the bank not acknowledged as debts [including SBP
liabilities on Bangladesh borrowing and interest thereon amounting
to Rs. 164 million (2005: Rs. 158 million) and claims relating to former
MBL amounting to Rs. 1,053 million (2005: Rs. 1,117 million)] 11,544,592 13,271,740
21.4.1 Taxation
The income tax assessments of the bank for global operations as well as Azad Kashmir have been finalized upto
and including the tax year 2005 (accounting year ended December 31, 2004). The income tax returns for the tax
year 2006 (accounting year ended December 31, 2005) have been filed for global operations and Azad Kashmir
and the same are deemed to be assessment order under the provisions of section 120 of the Income Tax
Ordinance, 2001, unless amended otherwise. Appeals filed by the bank and tax department for certain
assessment year including tax year 2005 are pending before various appellate forum / court of law. The major
issues involved include taxability of interest credited to suspense account and disallowances of cost incurred in
respect of employees’ special separation scheme. While amending the assessment order for the Tax Year 2005,
the Taxation Officer has disallowed / added provision against bad & doubtful debts as certified by SBP, allocation of
expenses relating to exempt income and revaluation loss of barter trade agreements, the tax impact of which
amounting to Rs. 941 million.
In the event that the appeals are decided against the bank, a further tax liability of Rs. 8,721 million (2005:
Rs. 7,780 million) may arise in addition to amount already provided.
Contingencies in respect of tax amounting to Rs.28.670 million (2005: Rs.29.084 million) relates to subsidiaries.
These mainly pertains to disallowed expenses and additional tax.
No provision has been made in these accounts for the above as the management, based on the opinion of tax
lawyers and consultants, considers that provision is not necessary because the Group is subjected to tax
exceeding its normal tax liability and will get relief in the appeals process.
21.4.2 Provident Fund
In 1977, in accordance with the GoP policy, the bank's employees benefits were changed from the Provident
Fund to an enhanced Pension Scheme and an option was given to the employees either to opt for the new
scheme or retain the existing benefits. Almost all employees opted for the new scheme. The bank considered t h a t
in accordance with the policy decision of the Banking Council and Finance Division of GoP, the balance of
bank's contribution lying in the members' account in the Provident Fund upto that date should have been
transferred to the Pension Fund to partially cover the additional cost of the enhanced benefits.
Subsequently, three employees filed a writ petition in 1980 before a Single Bench of Lahore High Court claiming
the balance lying in their Provident Fund Account. This petition was dismissed by the Single Bench in July, 1982.
Against this petition of the Single Bench, the aggrieved employees filed Intra Court Appeal before the High Court
which was heard by a Division Bench of the Lahore High Court on a number of dates, extending over 16 years.
Appeal against the Order of Single Bench was finally dismissed by the Division Bench vide Order dated July 31,
1998. One employee filed an appeal in the Supreme Court against the judgment of the Lahore High Court. In
2003, such appeals were finally decided by the Supreme Court of Pakistan against the bank. The Supreme
Court directed the bank that the employees shall be paid contribution made by the bank together with the
Interest upto the date of payment. The bank in accordance with the legal opinion obtained, has commenced
settlement of dues of eligible employees who had joined service of the bank prior to 1977. For the purpose of
settlement, interest has been calculated in accordance with Rule 12 of the Provident Fund Rules at average
redemption yield through the year of Central Government Rupee Loans of twenty years maturity or thereabout and
such interest has been calculated in accordance with Rule 19 i.e. to ex-employees upto the date of retirement or
death and to date in case of serving employees.
During 2004, certain employees have filed a contempt of court application before the Supreme Court, pointing
out the issue of rate of interest and date of payment. The bank filed a reply and submitted before the
Honourable Court the rate of interest which the petitioner are claiming is not admissible as payment on the said
account is covered by Provident Fund Rules.
On one of the dates of hearing the Court had already observed that the contempt proceedings are not meant to
cover the amount, if according to petitioners the amount falls short of their expectations. Under contempt
proceedings their jurisdiction is only confined to punishing for dies-obedience of the order. The Court also put a
direct question to the council for the petitioners to pinpoint the portion of the Order of Supreme Court which
according to him, was disobeyed. The learned Council was unable to do so. The Court therefore expressed the
view that proceedings of contempt were not competent. However, the matter is still awaiting the decision of
Honorable Supreme Court of Pakistan.
Pending outcome of the said application, the bank has decided not to claim excess fund lying in the Provident Fund
account although the management is confident that the payments being made are in accordance with the
Supreme Court's decision. The additional liability which may arise in case of different interpretation of the Supreme
Court's decision cannot be estimated until such interpretation is made.
Note 2006 2005

21.5 Commitments in respect of forward lending Rupees in ‘000
Forward call lending 1,000,000 -
21.6 Commitments in respect of forward exchange contracts

Purchase 33,055,235 36,816,486
Sale 15,352,480 15,623,954
21.7 Commitments in respect of trading of government securities

Sale 22,500 500,000
Purchase 10,000,000 -
21.8 Commitments for the acquisition of operating fixed assets

590,073 56,085
22. DERIVATIVE INSTRUMENTS
22.1 Product Analysis
Interest Rate Swaps Forward rate Agreements FX Options

Counterparties No. of Notional No. of Notional No. of Notional
Contracts Principal Contracts Principal Contracts Principal
With Banks for
Hedging - - - - - -
Market Making 6 4,400,000 - - - -
With FIs other than banks
Hedging - - - - - -
Market Making - - - - - -
With other entities for
Hedging - - - - - -
Market Making 7 4,505,000 - - - -
Total
Hedging - - - - - -
Market Making 13 8,905,000 - - - -
13 8,905,000 - - - -
22.2 Maturity Analysis
Interest Rate Swaps
Remaining No. of Notional Mark to Market

Maturity Contracts Principal Negative Positive Net
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 Year
1 to 2 Year 13 8,905,000 249,498 8,973 240,525
2 to 3 Years
3 to 5 Years
5 to 10 years
Above 10 Years
The scope of derivatives activities range from zero cost plain vanilla to more complex structured products such as
barrier options, participatory forwards etc.. The bank is involved in derivative transactions for trading as well as
hedging purpose.
The management is committed to managing risk and to controlling business and financial activities in a manner
which enables it to maximize profitable business opportunities, avoid or reduce risks, which can cause loss or
reputation damage, ensure compliance with applicable laws and regulations and resilience to external events.
The bank's business is conducted within a developed control framework, underpinned by written policies and
procedures duly approved by the Board of Directors. The management has developed a structure that clearly
defines roles, responsibilities and reporting lines. Delegated authorities and responsibilities are documented and
communicated.
The Asset Liability Committee regularly reviews the bank's risk profile. The performance of the bank's businesses
is reported regularly to senior line management as well as the Board of Directors. Performance trends, forecasts,
as well as actual performance against budgets and prior periods are closely monitored. Operations procedures
and controls have been established to facilitate complete, accurate and timely processing of transactions and
derivative activities. These controls include appropriate segregation of duties, regular reconciliation of accounts,
and the valuation of assets and positions. The management regularly reviews the effectiveness of the bank's
internal control system. The bank has established trading limits, allocation process, operating controls and
reporting requirements that are specifically designed to control risk of aggregate positions, assure compliance
with accounting and regulatory standards and provide accurate management information regarding these
activities.
Accounting policies in respect of derivative financial instruments are described in note 5.8.
23. MARK-UP/RETURN/INTEREST EARNED 2006 2005

Rupees in ‘000
On loans and advances to:
Customers and financial institutions 29,414,512 21,048,976
On Investments in:
Available-for-sale securities 5,471,554 5,794,870
Held-to-maturity securities 3,840,682 3,064,074
9,312,236 8,858,944
On deposits with financial institutions 4,042,198 3,014,591
On securities purchased under resale agreements 1,029,828 812,791
On interest rate SWAP 215,430 58,930
44,014,204 33,794,232
24. MARK-UP/RETURN/INTEREST EXPENSED

2006 2005
Deposits 13,038,151 9,805,954

Securities sold under repurchase agreements 299,551 158,233
Short-term borrowings 150,733 86,927
Long-term borrowings 19,791 2,442
Interest rates SWAP 215,430 330,194
13,723,656 10,383,750
25 GAIN / (LOSS) ON SALE OF SECURITIES

Market Treasury Bills (2,341) 66
Pakistan Investment Bonds (2,307) (34,803)
(4,648) (34,737)
Share -Listed 855,221 1,399,304
- Unlisted 25.1 344,676 -
1,199,897 1,399,304
Term Finance Certificates - Unlisted - 10,927
1,195,249 1,375,494
25.1 This includes gain of Rs. 296.443 million (2005: Nil) on disposal of shares of Investment Corporation of
Pakistan
26. OTHER INCOME

Rent on property 24,974 22,531
Net profit on sale of property and equipment 9,010 17,174
Reversal for voluntary handshake scheme - 28,635
Others 26.1 595,561 170,061
629,545 238,401
26.1 Other income includes Rs. 498 million (2005: Nil) on account of reversal of exchange equalisation of Cairo
Branch which was closed during the year ended December 31, 2005.
2006 2005
27. ADMINISTRATIVE EXPENSES

Salaries and allowances, etc. 8,341,775 6,650,366
One time special award to staff 259,180 -
Non-executive directors' fee, allowances and other expenses 35 1,795 881
Rent, taxes, insurance, electricity, etc. 703,690 695,894
Legal and professional charges 127,968 98,333
Communications 289,006 229,612
Repairs and maintenance 237,001 229,619
Finance charges on leased assets 1,994 2,571
Stationery and printing 302,746 297,126
Advertisement and publicity 210,716 94,297
Donations 27.1 1,850 108,419
Auditors' remuneration 27.2 55,368 55,507
Depreciation 11.2 496,763 575,478
Amortization 11.4 4,074 3,525
Conveyance 83,312 75,399
Entertainment 30,807 26,968
Travelling 239,385 160,268
Security services 515,958 440,972
Staff welfare fund 27.3 300,000 300,000
Others 725,295 503,679
13,645,699 11,401,026
27.1 Donations include following amounts exceeding Rs. 0.1 million
President’s Earthquake Releif Fund - 100,000

Supply of relief goods to earthquake affected areas - 2,436
Zindagi Trust - 5,983
Layton Rehmatullah Benevolent Trust 1,000 -
Auj International Karachi 200 -
Institute of Technology Pakistan Aeronautical Complex Kamra 500 -
1,700 108,419
None of the directors/executives or their spouses have any interest in the donee.
27.2 Auditors’ Remuneration M. Yousuf Adil Ford Rhodes 2006 2005

Saleem & Co. Sidat Hyder & Co. Total Total
Rupees in ‘000
Audit fee - Annual 2,378 2,378 4,756 3,756
- Interim 1,320 1,320 2,640 2,640
Fee for audit of domestic branches 2,492 2,492 4,984 4,984
Fee for special certifications and sundry advisory services 1,555 1,036 2,591 1,824
Fee for audit of overseas branches including advisory
services and out-of-pocket expenses - - 34,173 37,485
Fee for audit of subsidiaries - - 2,264 2,302
Fee for audit of pension and other funds - - 1,185 -
Out-of-pocket expenses 1,420 1,355 2,775 2,516
9,165 8,581 55,368 55,507
27.3 The charge for staff welfare fund is based on estimated payments to be made out of current year’s profits
2006 2005
28. OTHER CHARGES

Penalties imposed by SBP 208,327 63,206
29. TAXATION
For the year
Current 8,721,386 7,165,385

Deferred 61,981 299,879
29.1 8,783,367 7,465,264
For prior year(s)
Current 530,652 (1,098,709)

Deferred - -
530,652 (1,098,709)
9,314,019 6,366,555
Current taxation includes Rs.504 million (2005: Rs.490 million) of overseas branches.
The tax provision for 2006 has been made on estimated taxable income after charging provision against non-
performing advances for which certificates from SBP, as required by the taxation authorities, are yet to be
received.
29.1 Relationship between tax expense and accounting profit
Accounting profit before tax 26,568,736 19,208,945
Income tax at statutory rate @ 35% (2005: 38%) 9,299,058 7,299,399
Increase/(decrease) in taxes resulting from:
Inadmissible differences 222,751 525,074

Income taxed at reduced rate (219,312) (166,647)
Income exempt from tax (1,069,228) (895,574)
Provisions no longer considered as temporary differences - 539,010
Overseas taxation 550,098 164,002
Tax charge for current year 8,783,367 7,465,264
30. BASIC EARNINGS PER SHARE
Profit attributable to shareholders of the holding company Rupees '000 17,242,767 12,825,013
Weighted average number of ordinary shares Numbers '000 709,071 709,071
Basic earnings per share Rupees 24.32 18.09

31. DILUTED EARNINGS PER SHARE
Basic and diluted earnings per share are same.

Note 2006 2005
32. CASH AND CASH EQUIVALENTS Rupees in ‘000
Cash and balances with treasury banks 78,862,625 71,352,128

Balances with other banks 41,412,546 31,599,103
Overdrawn nostro accounts (453,785) (632,751)
119,821,386 102,318,480
33. STAFF STRENGTH 2006 2005

Numbers
Permanent 13,434 13,406

Temporary/on contractual basis 775 592
Group’s own staff strength at the end of the year 14,209 13,998
Outsourced 1,362 1,377
Total Staff Strength 15,571 15,375
34. DEFINED BENEFIT PLANS
National Bank of Pakistan
General description
General description of the type of defined benefit plan and accounting policy for recognising actuarial gains
and losses is disclosed in note 5.14 to the financial statements.
Principal actuarial assumptions
The financial assumptions used in actuarial valuation at December 31, 2006 of pension fund, post retirement
medical benefits, non-encashable leaves, leave encashment, benevolent fund and gratuity schemes are as
follows:
Note 2006 2005
Rupees in ‘000
Salary increase 9% per annum 9% per annum

Discount rate 9% per annum 9% per annum
Expected rate of return on plan assets 9% per annum 9% per annum
Pension indexation rate 5% per annum 5% per annum
Rate of inflation in the cost of medical benefits 7% per annum 7% per annum
Number of employees covered under retirement benefit plan 13,084 13,050
34.1 Reconciliation of (recoverable from) pension fund

Fair value of any plan assets (17,333,982) (13,615,308)
Net actuarial gains or losses not recognized 2,312,800 1,006,568
12 (2,951,933) (2,523,668)
The recognized amount has been restricted to present value of any economic benefits available in the form of
refunds from the plan or reduction in future contribution to the plan.
34.1.1 Included herein is a sum of Rs. 3.078 million (2005: Rs. 2,598 million) placed under deposit maintained with
the bank.
Note 2006 2005

Rupees in ‘000
Movement in (recoverable from) pension fund
Opening net assets (2,523,668) (2,047,859)

Contribution to the fund made during the year (4,30,131) (613,330)
Closing balance 12 (2,951,933) (2,523,668)
Charge for pension fund

Expected return on plan assets (1,225,378) (876,252)
Actuarial (gains)/losses recognized - -
1,866 137,521
Actual return on plan assets 1,454,739 1,139,733
34.1.2 Reconciliation of (recoverable from) pension fund for the five years are as follows:
2006 2005 2004 2003 2002

Rupees ‘000
Present value of defined benefit obligations 12,069,249 10,085,072 8,889,166 7,721,627 5,923,230
Fair value of plan assets (17,333,982) (13,615,308) (10,953,151) (10,900,651) (7,779,927)
Net actuarial gains not recognized 2,312,800 1,006,568 16,126 1,506,095 458,722
(2,951,933) (2,523,668) (2,047,859) (1,672,929) (1,397,975)
2006 2005
34.2 Reconciliation of payable to medical benefit plan

Fair value of plan assets - -
Net actuarial losses not recognized (318,705) (301,957)
18 2,276,586 2,001,749

Benefits paid (14,631) (61,799)
2,276,587 2,001,749
2006 2005
Charge for medical benefit plan

Actuarial (gains)/losses recognized 8,948 24,350
289,469 291,650
34.3 Movement in net liability recognized for compensated absences

18 1,639,708 1,521,326
34.4 Movement in net liability recognized for benevolent fund
Opening net assets 729,725 733,572

Benefits paid (55,973) (60,089)
18 802,937 729,725
Charged for benevolent fund

Actuarial losses / (gains) recognized 44,103 (22,906)
129,185 56,242
34.5 Reconciliation of payable to gratuity benefit plan
Present value of defined benefit obligations 58,205 -

Net actuarial losses not recognized (2,635) -
Unrecognized Past Service Cost (22,161) -
18 33,409 -
Opening liability - -
Benefits paid - -
33,409 -
Charge for gratuity benefit plan
Current service cost 7,272 -

Interest cost 2,080 -
Past service cost to be recognized 24,057 -
33,409 -
34.6 Actual return on plan assets 15,181 33,578

35. COMPENSATION OF DIRECTORS AND EXECUTIVES

President Directors Executives
2006 2005 2006 2005 2006 2005
Rupees in ‘000
Fees - - 1,116 769 - -

Managerial remuneration 6,600 3,600 - - 122,997 117,231
Charge for defined benefit plan - - - - 48,467 17,823
Rent and house maintenance 3,192 3,490 - - 58,424 52,936
Utilities 598 578 - - 12,227 10,381
Medical 1,631 1,356 - - 1,302 10,018
Conveyance - - - - 24,709 35,091
Leave fare assistance 3,000 2,250 - - - -
Bonus & others 17,369 7,978 - - 53,474 27,909
32,390 19,252 1,116 769 321,600 271,389
Number of persons 1 1 7 7 135 131
The president and certain executives are also provided with free use of the bank's cars, household
equipments and free membership of clubs.
The particulars in the note do not include particulars of Chief Executive and Executives employed by the
subsidiaries.
36. FAIR VALUE OF FINANCIAL INSTRUMENTS
36.1 On-balance sheet financial instruments

2006 2005
Book Fair Book Fair
Value Value Value Value
Rupees in ‘000
Assets
Cash and balances with treasury banks 78,862,625 78,862,625 71,352,128 71,352,128
Balances with other banks 41,412,546 41,412,546 31,599,103 31,599,103
Lendings to financial institutions 23,164,082 23,164,082 16,542,546 16,542,546
Investments 140,740,067 138,758,810 157,126,472 155,410,686
Advances 316,455,800 316,455,800 268,736,986 268,736,986
Other assets 14,712,257 14,712,257 12,774,453 12,774,453
615,347,377 613,366,120 558,131,688 556,415,902
Liabilities
Bills payable 10,605,662 10,605,662 1,741,156 1,741,156
Borrowings 12,682,412 12,682,412 9,342,096 9,342,096
Deposits and other accounts 502,016,711 502,016,711 463,196,347 463,196,347
Liabilities against assets subject to finance lease 14,336 14,336 20,177 20,177
Other liabilities 20,919,030 20,919,030 19,403,586 19,403,586
546,238,151 546,238,151 493,703,362 493,703,362
36.2 Off-balance sheet financial instruments
Forward purchase of foreign exchange 33,055,235 33,147,690 36,816,486 36,954,006
Forward sale of foreign exchange 15,352,480 15,354,064 15,623,954 15,761,474
Coupon swap and quanta interest rate swaps 4,505,000 4,264,475 4,557,500 4,125,307
Equity futures sold 339,816 339,017 - -
Forward call lending 1,000,000 1,000,000 - -
Forward purchases of trading in government securities 10,000,000 10,000,000 - -
Forward sale of trading in government securities 22,500 22,500 500,000 500,000
All quoted investments have been stated at their market values. All un-quoted investments have been stated at
lower of cost or realisable value, being their estimated fair values.
Fair value of loans and advances cannot be determined with reasonable accuracy due to absence of current and
active market. Loans and advances are repriced frequently on market rates and are reduced for any impairment
against non-performing advances determined in accordance with Prudential Regulations.
Fair value of all other assets and liabilities including long-term deposits cannot be calculated with sufficient
accuracy as active market does not exist for these instruments. In the opinion of the management, fair value of
these assets and liabilities are not significantly different from their carrying values since assets and liabilities are
either short term in nature or in the case of deposits are frequently repriced.
37. Segment Details with respect to Business Activities
The segment analysis with respect to business activity is as follows:-
Corporate Trading & Retail Commercial Payment & Agency Assets Retail Others
Finance Sales Banking Banking Settlement Services Management Brokerage
Rupees in ‘000
2006
Total income 168,813 11,521,284 11,707,918 16,138,851 592,940 2,554,070 - 95,503 -

Total expenses 1,439 (359,089) 7,221,922 6,277,953 504,351 2,503,560 - 60,503 -
Net income (Loss) 167,374 11,880,373 4,485,996 9,860,898 88,589 50,510 - 35,000 -
Segment Assets (Gross) - 272,897,093 93,292,013 305,717,946 - - - 623,379 -
Segment Non Performing Loans - - 1,458,278 34,801,608 - - - - -
Segment Liabilities - 8,518,257 128,818,479 417,138,461 - - - 406,369 -
Segment Return on net Assets (ROA) (%) 0.00% 4.49% 3.48% 2.36% 0.00% 0.00% 0.00% 16.13% 0.00%
Segment Cost of funds (%) 0.00% 0.00% 1.07% 3.19% 0.00% 0.00% 0.00% 0.00% 0.00%
2005
Total income 91,014 11,822,774 7,377,702 11,430,012 418,028 1,833,121 - 121,320 -

Total expenses 861 796,018 5,892,934 4,285,774 391,488 2,448,545 - 69,846 -
Net income (Loss) 90,153 11,026,756 1,484,768 7,144,238 26,540 (615,424) - 51,474 -
Segment Assets (Gross) - 272,293,987 76,103,560 264,188,719 - - - 1,048,193 -
Segment Non Performing Loans - - 799,435 32,938,336 - - - - -
Segment Liabilities - 10,224,874 103,297,032 388,803,623 - - - 842,258 -
Segment Return on net Assets (ROA) (%) 0.00% 4.21% 1.44% 1.84% 0.00% 0.00% 0.00% 25.00% 0.00%
Segment Cost of funds (%) 0.00% 0.00% 1.18% 2.32% 0.00% 0.00% 0.00% 0.00% 0.00%
38. TRUST ACTIVITIES
38.1 National Investment Trust (NIT)
Under a trust deed, the bank provides services, as a trustee to NIT and is performing functions of sale/purchase of
NIT units, safe custody and maintaining unit holders accounts. The bank is keeping approximately 1.3 billion
shares with market value of Rs.72,832 million (2005: Rs.77,724 million) in safe custody/Central Depository
Company on behalf of NIT.
38.2 Long Term Credit Fund (LTCF)
Consequent upon the NDFC amalgamation, the bank manages on behalf of the GoP, LTCF established from the
proceeds of loans disbursed by various international funding agencies for financing private sector energy
development projects. Fund assets are accounted for separately from those of the bank and amounted to Rs.38
billion (2005: Rs.41 billion). Administrative fee relating to the management of LTCF is accounted for on receipt
basis. However, the bank is in process of negotiating the charge of fee in consideration of administrative services
to the LTCF.
38.3 Qarz-e-Hasna Fund
The work relating to Qarz-e-Hasna Scheme was attended by Pakistan Banking Council (PBC) since inception.
PBC was dissolved in January 1997. In order to fill the void created by the dissolution of PBC and in order to
continue the scheme, SBP decided to entrust all funds and transfer all record relating to Qarz-e-Hasna scheme for
education to the bank with the instructions to perform all work relating to the Fund.
Till December 31, 2006 SBP had transferred Rs.244 million (2005: Rs.244 million) to the bank. Assets and
Liabilities relating to the Fund have been treated as off-balance sheet item in the financial statements.
39. RELATED PARTY TRANSACTIONS
The group has related party relationship with its associated undertakings, joint ventures, employee benefit plans,
and its key management personnel (including their associates). The details of investments in subsidiary
companies and associated undertakings are stated in note 9 to these financial statements.
Transactions between the group and its related parties are carried out under normal course of business except
employee staff loans, provident fund and loan given to NBP Exchange Company Limited, that are as per
agreement.
Detail of loan and advances to the companies or firms, in which the directors of the bank are interested as directors,
partners or in case of private companies as members, are given in note 10.7 to these financial statements. There
are no transactions with key management personnel other than under their terms of employment. Contributions to
an approval in respect of staff retirement and other benefit plans as disclosed in note 34 to these financial
statements. Remuneration to the executive and disposal of vehicles are disclosed in notes 35 and 11.7 to the
2006 2005
Rupees in ‘000
Balance outstanding at year end
Advances to:
Associates 1,600,070 1,970,002
Key management executives * 65,225 52,117
Debts due by company in which a director of the bank is interested

as director 222,759 119,319
Placements with:
Investments with associates 27,331 27,331
* This includes loans extended to certain key management executives in accordance with the terms of
employment.
Deposits from:
Pension fund
Received during the year - net 478,178 903,424
Provident fund
Received during the year - net 732,235 1,738,162
Income for the year

On advances placements with:
Associates 46,105 58,199
Joint ventures 9,619 5,309
Debts due by company in which director of the
bank is interested as director 9,102 4,341
Commission received from associates - 1,824
Interest on money market transaction from associates 16,520 15,394
Expenses for the year

Remuneration to key management executives 66,157 54,997
Finance cost paid to associates 1,867 2,940
On deposits of
Provident fund ** 976,870 730,385
Gratuity fund 981 922
Other receivables 23,284 32,111
Other payables 144 -
** Had the interest on deposits from provident fund paid at the average rate of twenty years Government paper,
interest would have been lower by Rs.306 million.
39.1 Although the Federal Government and the SBP held about 75.60% shares of the bank (2005: 75.60%), the
transactions with these entities have not been treated as related party transactions for the purpose of this
disclosure.
40. CAPITAL ADEQUACY
The risk weighted assets to capital ratio, calculated in accordance with the State Bank’s guidelines on capital
adequacy was as follows:-
Regulatory Capital Base
Tier I Capital
Shareholders Capital 7,090,712 5,908,927
Reserves 10,575,787 8,873,552
Unappropriated profit 32,623,507 19,700,932
Minority interest 97,827 85,877
Total Tier I Capital 50,387,833 34,569,288
Tier II Capital
Subordinated Debt (upto 50% of total Tier I Capital) - -
General Provisions subject to 1.25% of Total Risk Weighted Assets 2,162,008 -
Exchange equalization reserve 3,809,070 3,754,297
Revaluation Reserve (upto 50%) 14,395,186 19,069,172
Total Tier II Capital 20,366,264 22,823,469
Eligible Tier III Capital - -

Total Regulatory Capital (a) 70,754,097 57,392,75 7
Risk-Weighted Exposures 2006 2005

Risk Adjusted Risk Adjusted
Credit Risk Book Value Value Book Value Value
Balance Sheet Items:- Rupees in ‘000
Cash and other liquid Assets 120,275,171 8,282,509 102,951,231 6,319,706
Money at call 23,164,082 1,796,270 16,542,546 1,505,350
Investments 140,740,067 49,364,989 157,126,472 51,866,574
Loans and Advances 312,418,520 244,527,684 266,317,945 203,725,105
Fixed Assets 9,739,938 9,739,938 9,521,854 9,521,854
Other Assets 27,573,646 18,077,586 24,764,611 14,255,982
633,911,424 331,788,976 577,224,659 287,194,571
Off Balance Sheet items
Loan Repayment Guarantees 30,039,047 15,510,825 15,786,936 10,993,521
Purchase and Resale Agreements - - - -
Performance Bonds etc 23,653,597 8,340,146 22,459,662 7,094,877
Revolving underwriting Commitments - - - -
Stand By Letters of Credit 160,542,984 16,745,802 103,750,961 15,559,035
Outstanding Foreign Exchange Contracts
- Purchase 33,055,235 232,166 36,816,486 174,123
- Sale 15,352,480 131,394 15,623,954 160,319
Single currency Interest Rate SWAP 4,505,000 36,040 4,557,500 22,788
267,148,343 40,996,373 198,995,499 34,004,663
Credit risk-weighted exposures 372,785,349 321,199,234
Market Risk
General market risk 43,220,066 41,298,613
Specific market Risk 405,201 482,225
Market risk-weighted exposures 43,625,267 41,780,838
Total Risk-Weighted exposures (b) 416,410,616 362,980,072
Capital Adequacy Ratio [ (a) / (b) x 100)] 16.99 15.81

41. RISK MANAGEMENT
41.1 Credit risk
Credit risk exposure in respect of earning assets and off-balance sheet financial instruments represents carrying
values of assets and contingencies which could be impacted as a result of failure by the Group's counter-parties to
discharge their obligations under financial instruments and cause the Group to incur financial loss.
Concentration of credit risk arises from exposures to customers having similar characteristics in terms of industry
in which they are engaged, geographical location in which they operate such that their ability to discharge
contractual obligations may be similarly affected by change in political, economical and other conditions.
Significant concentrations of bank's risk assets by industrial and geographical sectors are set out below.
Credit risk is managed in terms of lending policy, approved by the board of directors and other laid down
procedures outlined in the Standard Procedures Manual and related circulars. Credit limits are established for all
counter-parties after a careful assessment of their credit worthiness. An effective credit granting procedure, which
requires pre-sanction evaluation of credit proposal, adequacy of security and pre-disbursement examination of
charge documents has been established and managed by Credit Management Group (CMG) at Head Office.
Where possible, all loans and advances are secured by acceptable form of collateral to mitigate credit risk. The
CMG is also responsible for continuing review and monitoring of borrowers' accounts and effective compliance of
Prudential Regulations.
The Group maintains a sound advances portfolio diversified in nature to counter the risk of credit concentration
and further limits risk through diversification of its assets by geographical and industrial sector.
Cross border exposures are controlled by the Group by considering country/sovereign risk and these are updated
on regular basis.
Special Assets Management Group (SAMG) of the bank is responsible for monitoring the stuck up advances. It
negotiates with the borrowers and takes legal actions against the delinquent borrowers.
41.1.1 SEGMENTAL INFORMATION
Segmental Information is presented in respect of the class of business and geographical distribution of Advances,
Deposits, Contingencies and Commitments.
41.1.1.1 Segments by class of business

2006
Contingencies &
‘000 % ‘000 % ‘000 %
Chemical and pharmaceuticals 4,693,230 1.35 461,974 0.09 2,431,576 1.14

Agribusiness 20,268,072 5.81 12,054,588 2.40 162,534 0.08
Textile 56,452,813 16.19 1,640,154 0.33 8,169,668 3.81
Cement 11,369,161 3.26 304,041 0.06 1,844,936 0.86
Sugar 6,509,554 1.87 202,139 0.04 48,562 0.02
Flour 907,409 0.26 86,439 0.02 - -
Rice processing 7,082,252 2.03 1,574,744 0.31 6,656 0.00
Shoes & leather garments 1,103,387 0.32 197,288 0.04 32,004 0.01
Automobile and
transportation equipment 4,549,772 1.30 331,255 0.07 451,410 0.21
Financial 12,883,678 3.69 54,779,487 10.91 6,680,552 3.12
Insurance 6,521 0.00 1,001,831 0.20 - -
Transportation 6,936,637 1.99 1,549,778 0.31 191,911 0.09
Real Estate Construction 3,002,214 0.86 1,519,324 0.30 467,788 0.22
appliances 4,568,911 1.31 479,109 0.10 1,502,778 0.70
Production and transmission
of energy 13,141,297 3.77 2,254,106 0.45 18,954,713 8.85
Food and tobacco 2,409,530 0.69 483,804 0.10 17,604 0.01
Fertilizer 2,538,269 0.73 380,349 0.08 60,705 0.03
Metal products 5,266,100 1.51 114,790 0.02 897,844 0.42
Oil, gas, petroleum
and energy 24,136,167 6.92 14,068,691 2.80 9,735,568 4.54
Telecommunication 7,677,171 2.20 18,653,001 3.72 4,897,886 2.29
Hotel and services 2,962,337 0.85 5,808,852 1.16 511,459 0.24
Public sector commodity
operations 20,272,868 5.81 5,689,310 1.13 468,784 0.22
Individuals 79,171,657 22.70 188,168,759 37.48 1,474,146 0.69
General traders 11,447,551 3.28 16,312,828 3.25 1,496,007 0.70
Others 39,359,293 11.29 173,900,071 34.64 153,730,537 71.76
348,715,852 100.00 502,016,711 100.00 214,235,628 100.00
41.1.1.2 Segment by sector

2006
Contingencies &
‘000 % ‘000 % ‘000 %
Public/ Government 63,218,048 18.13 171,696,101 34.20 151,780,179 70.85

Private 285,497,804 81.87 330,320,610 65.80 62,455,449 29.15
348,715,852 100.00 501,016,711 100.00 214,235,628 100.00
41.1.1.3 Details of non-performing advances and specific provisions by class of business segment
2006 2005
Specific Specific
Classified Provisions Classified Provisions
Advances Held Advances Held
Rupees in ‘000
Chemical and pharmaceuticals 1,553,889 1,484,888 1,498,584 1,448,439

Agribusiness 1,102,793 263,248 514,785 147,503
Textile 11,883,548 10,067,133 9,939,566 8,549,330
Cement 2,182,965 1,479,413 2,314,712 1,479,041
Sugar 1,523,504 1,256,677 1,630,832 1,350,595
Flour 102,895 80,434 134,903 122,787
Rice processing 321,257 180,805 268,661 175,625
Shoes & leather garments 178,190 154,602 157,719 135,256
Automobile and
transportation equipment 317,633 273,066 116,883 78,849
Financial 66,404 39,019 184,905 184,905
Transportation 223,215 223,215 546,766 546,266
Real Estate Construction 138,071 105,164 103,245 98,443
appliances 146,289 142,543 240,440 236,103
Food and tobacco 1,073,901 1,020,411 1,215,606 1,156,445
Fertilizer 190,795 160,680 184,699 164,861
Metal products 1,922,181 1,578,470 2,931,249 2,488,943
Oil, gas, petroleum
and energy 978,385 626,507 973,885 655,297
Hotel and services 9,306 9,306 13,324 4,949
Individuals 355,485 210,654 284,650 105,614
General traders 3,880,361 3,429,779 4,786,751 4,215,035
Others 8,108,819 6,742,658 5,695,606 5,044,444
36,259,886 29,528,672 33,737,771 28,388,730
41.1.1.4 Details of non-performing advances and specific provision by sector
Public/ Government 1,137,579 926,431 1,924,409 1,713,261

Private 35,122,307 28,602,241 31,813,362 26,675,469
36,259,886 29,528,672 33,737,771 28,388,730
41.1.1.5 Geographical Segment Analysis 2006

Contingencies
Profit before Total assets Net assets &
taxation employed employed Commitments
Rupees in ‘000
Pakistan 25,126,948 513,872,043 73,876,220 200,983,175
Asia Pacific (including South Asia) 576,096 24,866,196 5,471,265 2,793,186
Europe (21,339) 6,975,050 1,648,668 2,426,621
United States of America and Canada 286,209 14,452,914 1,403,386 8,025,098
Middle East 600,822 77,782,501 667,148 7,548
26,568,736 637,948,704 83,066,687 214,235,628
41.2 Market Risk

Market risk refers to the risk to an institution resulting from movements in market variables, in particular, changes in
interest rates, foreign exchange rates, and equity and commodity prices.
Market risk management strategy states the risk tolerance level, which the institution is prepared to assume, and
the business goals it plan to achieve. NBP market risk office makes sure that Bank's Market risk exposure, i.e.
exposure in Money Market, Foreign Exchange Market and Equity Market, adheres with the risk tolerance level and
matches with overall business goals set by Board of Directors (BOD), Risk Management Committee (RMC) and
Assets & Liability Committee (ALCO). Various risk management reports are generated e.g. 'Exception reports',
'Limit reports', 'Stress Testing reports', 'Money market and FX Gap reports', 'Counterparty limit report', 'CRR', and
'SLR' etc for the purpose of market risk measurement and monitoring. Market risk is in the process of setting up
Asset & Liability Management (ALM) system that will assist ALCO in monitoring overall Bank's Asset & Liability
portfolio.
41.2.1 Foreign Exchange Risk

2006
Net foreign
Off-balance currency
Assets Liabilities sheet items exposure
Rupees in ‘000
Pakistan Rupee 481,115,939 430,005,064 (17,303,401) 33,807,474
United States Dollar 117,514,679 99,539,765 13,066,227 31,041,141
Great Britain Pound 3,032,881 3,148,852 2,334,984 2,219,013
Euro
7,872,208 4,558,165 2,202,155 5,516,198
Japanese Yen
Other currencies 4,067,857 3,808,732 (269,550) (10,425)
24,345,140 13,821,439 (30,415) 10,493,286
156,832,765 124,976,953 17,303,401 49,259,213
637,948,704 554,882,017 - 83,066,687
Currency risk arises where the value of financial instrument changes due to changes in foreign exchange rates. In
order to manage currency risk exposure the bank enters into ready, spot, forward and swap transactions with the
SBP and in the inter bank market.
The bank's foreign exchange exposure comprises of forward contracts, purchases of foreign bills, foreign
currencies cash in hand, balances with banks abroad, foreign placements with SBP and foreign currencies assets
and liabilities. The net open position is managed within the statutory limits, as fixed by the SBP. Counter-parties
limits are also fixed to limit risk concentration. Appropriate segregation of duties exist between the front and back
office functions while compliance with the net open position limit is independently monitored on an ongoing basis.
The liabilities in foreign currencies include a sum of Rs.787 million (2005: Rs.1,011 million) being deposits in
foreign currencies of local branches against which the bank has obtained forward cover through SBP.
41.2.2 Equity Position Risk
Investments in equities are generally regarded as riskier relative to Fixed Income Securities owing to the inherent
volatility of stock market prices. The risk from various factors that include, but are not limited to:
- Changes in business cycle affecting the business of the company in which the investment is made.
Change in business circumstances (i.e. fundamentals) of the company, its business sector, industry and /or
economy in general.
- Mismanagement of the investee company, third party liability whether through class action or otherwise or
occurrence of other events such as strikes, fraud, etc. in the company in which investment is made.
- Fluctuation in the shares prices resulting from their dependence on market sentiment, speculative activity,
supply and demand of shares and liquidity in the market.
- The possibility of defaults by participant or failure of the stock exchanges, the depositories, the settlement or
the clearing system in discharging their fiduciary responsibilities.
- Any government or court order restraining payment of dividend by a company to its shareholders.
The bank mitigates the aforesaid risk as follows:
- Through diversification and capping maximum exposure in a single sector/company. Additionally continuous
follow up of these sectors and companies through self monitoring and fundamentals research from reputable
brokerage houses.
- Compliance with SECP Corporate Governance Rules by the investee company besides employing prudent
investing practices (focus on dividend payout history).
- The bank will refrain from speculative trading and the investment will be made as per the guidelines on liquidity
and growth as per investment policy manual or set by the Board of Directors.
- The bank follows a Delivery versus Payment settlement system thereby minimizing risk available in relation to
settlement risk.
41.2.3 Mismatch of interest rate sensitive assets and liabilities
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest rates. The Group is exposed
to interest/mark-up rate risk as a result of mismatches or gaps in the amount of interest/mark-up based assets and liabilities that mature or re-
price in a given period. The Group manages this risk by matching/re-pricing of assets and liabilities. The Group is not excessively exposed to
interest/mark-up rate risk as its assets and liabilities are re-priced frequently. The Assets and Liabilities Committee (ALCO) of the Group monitors
and manages the interest rate risk with the objective of limiting the potential adverse effects on the profitability of the Group.
2006
Effective Non-interest
Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Interest Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above financial
rate Total Month Months Months Year Year Year Year Year 10 years instruments
Rupees in ‘000
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks 3.05% 78,862,625 5,328,059 18,265,650 13,212,181 - - - - 724 - 42,056,011
Balances with other banks 5.43% 41,412,546 31,493,350 5,844,885 2,391,174 470,287 119 - - - - 1,212,731
Lending to financial institutions 5.07% 23,164,082 - 3,797,529 16,747,792 2,618,761 - - - - - -
Investments 8.56% 140,740,067 5,722,061 35,704,315 52,610,720 13,577,494 6,264,525 15,132,315 2,274,244 8,794,060 574,707 85,626
Advances 10.08% 316,455,800 62,590,392 52,488,983 97,332,079 48,669,198 46,882,213 158,300 2,055,574 1,541,900 4,736,285 876
Other assets 0.00% 14,712,257 - 16,694 - 1,876 - - 522 - - 14,693,165
615,347,377 105,133,862 116,118,056 182,293,946 65,337,616 53,146,857 15,290,615 4,330,340 10,336,684 5,310992 58,048,409
Liabilities
Bills payable 0.00% 10,605,662 - - - - - - - 10,605,662
Borrowings 3.78% 12,682,412 1,610,623 9,706,697 109,600 66,666 - - 204,133 - - 984,693
Deposits and other accounts 2.73% 502,016,711 277,664,090 57,459,492 26,417,526 2,326,660 - - - - - 138,148,943
Liabilities against assets subject to finance lease 14,336 116 879 13,238 103 - - -
Other liabilities 20,919,030 - 19,946 - 23,030 - - 95,212 - - 20,780,842
0.00% 546,238,151 279,274,829 67,186,135 26,528,005 2,416,356 - 13,238 299,448 - - 170,520,140
On-balance sheet gap 69,109,226 (174,140,967) (48,931,921) 155,765,941 62,921,260 53,146,857 15,277,377 4,030,892 10,336,684 5,310,992 (112,471,731)
Off-balance sheet financial instruments
Forward purchase of foreign exchange 33,055,235 5,210,218 6,954,697 10,168,736 10,721,548 - - - - - -
Forward sale of foreign exchange 15,352,480 4,011,439 2,532,404 3,510,552 5,298,085 - - - - - -
Coupon swap and quanta interest rate swap 4,505,000 - - - - 4,505,000 - - - - -
Equity futures sold 339,816, - - 339,186 - - - - - - -
Farward call lending 1,000,000 1,000,000 - - - - - - - - -
Forward Purchase of trading in government securities 10,000,000 10,000,000 - - - - - - - - -
Forward Sales of trading in government securities 22,500 22,500 - - - - - - - - -
Off-balance sheet gap 64,275,031 20,244,157 9,487,101 14,01 9,104 16,019,669 4,505,000 - - - - -
Total Yield/Interest Risk Sensitivity Gap 133,384,257 (153,896,810) 58,419,022 169,785,045 78,940,929 57,651,857 15,277,377 4,030,892 10,336,684 5,310,992 (112,471,731)
Cumulative Yield/Interest Risk Sensitivity Gap - (153,896,810) (95,477,788) 74,307,257 153,248,186 210,900,043 226,177,420 230,208,312 240,544,996 245,855,988 133,384,257
42.3 Liquidity Risk
Liquidity risk is the risk that the Group will be unable to meet its liability when they fail due. To limit this risk, management has arranged diversified
funded sources, manages assets with liquidity in mind and monitors liquidity on daily basis. In addition, the Group maintain statutory deposits with
central banks inside and outside Pakistan.
42.3.1 Maturities of Assets and Liabilities

2006
Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5

Upto 1 to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 Above
Total Month Months Months Year Year Year Year Year 10 years
Rupees in ‘000
Assets
Cash and balances with treasury banks 78,862,625 47,149,657 18,265,650 13,209,920 236,674 - - - 724 -
Balances with other banks 41,412,546 32,434,384 5,541,734 2,391,174 1,045,135 119 - - - -
Lending to financial institutions 23,164,082 - 3,797,529 16,747,792 2,618,761 - - - - -
Investments 140,740,067 3,854,699 31,219,315 9,280,763 30,698,923 21,737,459 20,723,117 8,782,231 11,369,974 3,073,586
Advances 316,455,800 42,973,488 38,541,582 46,047,045 74,401,036 29,867,599 30,681,841 39,197,210 14,127,166 518,833
Operating fixed assets 9,736,938 - - - - - - 20,858 9,719,080 -
Other assets 27,573,646 5,127,879 6,188,713 3,500,789 497,050 3,033,699 8,896,418 329,098 - -
637,948,704 131,540,107 103,654,523 91,177,483 109,497,579 54,638,876 60,301,376 48,329,397 35,216,944 3,592,419
Liabilities
Bills payable 10,605,662 10,605,662 - - - - - - - -
Borrowings 12,682,412 2,064,408 9,794,689 109,600 254,666 254,907 - 204,133 - -
Deposits and other accounts 502,016,711 391,728,528 69,631,553 14,454,044 7,796,143 4,055,681 2,386,141 2,954,218 4,081,889 4,928,514
Liabilities against assets subject to finance lease 14,336 - 116 - 886 - 13,231 103 - -
Deferred tax liabilities 2,376,606 - - - 30 - - 2,823,131 (446,555) -
Other liabilities 27,186,290 8,492,615 728,728 3,714,835 465,207 10,322,820 - 2,079,689 - 1,382,396
554,882,017 412,891,213 80,155,095 18,278,479 8,516,932 14,633,408 2,399,372 8,061,274 3,635,334 6,310,910
No assets 83,066,687 (281,351,107) 23,499,428 72,899,004 100,980,647 40,005,468 57,902,004 40,268,123 31,581,610 (2,718,491)
Share capital 7,090,712

Reserves 14,384,857
Unappropriated profit 32,623,507
Minority interest 97,827
Surplus on revaluation of assets 28,869,784
83,066,687
Savings and current deposits have been classified as due upto one months. However, the bank does not expect these deposits to fall below their current level
42.4 Operational Risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and system or
from external events
In terms of Road map set forth by the National Regulators all banks in Pakistan are mandated to implement BII
Basic Indicator approach for Operational Risk for calculation of Minimum Capital Requirement (MCR) from
January 1, 2008. Parallel run for which has started from July 1, 2006. However AMA approach is not being offered
by SBP for the time being. With the strengthening of operational Risk management department the bank plans to
move towards standardized approach for Operational Risk Management. Time lines for adopting this
approach shall be determined once the bank's road map of BII is finalized. The bank has thus embarked upon
Basic Indicator Approach for the time being.
The bank is in the process of setting up separate operational Risk management unit that will analyze the existing
data for developing key risk indicators, assess additional data required for testing and strengthening controls. The
bank is already working on Business continuity and disaster recovery plan under the supervision of Operations
Group.
43. SUBSEQUENT EVENT
The Board of Directors of the holding company has proposed a cash dividend of Rs.4 per share (2005: Rs. 2.5 per
share) amounting to Rs. 2,836 million (2005: Rs. 1,477 million) and bonus shares in the proportion of 15 ordinary
shares per 100 ordinary shares held (2005: 20) amounting to Rs. 1,064 million (2005: Rs. 1,182 million) in its
meeting held on February 24, 2007 for approval of the members at the Annual General Meeting to be held on
April 2, 2007. These financial statements do not reflect this appropriation as explained in note 5.1.
44. GENERAL
44.1 These accounts have been prepared in accordance with the revised forms of annual financial statements of the
banks issued by the State Bank of Pakistan through its BSD Circular No. 04 dated February 17, 2006.
44.2 Figures have been rounded off to the nearest thousand rupees.
44.3 Comparative figures have been reclassified and re-arranged to facilitate comparison as per revised form of annual
financial statement.
45. DATE OF AUTHORIZATION FOR ISSUE
The consolidated financial statements were authorized for issue on February 24, 2007 by the Board of Directors of
the holding company.
Annexure “I”
Referred to in Note 9.13 & 9.15
Details of Investment as at December 31, 2006 to the financial statements
1.1 Government Compensation Bonds
Principal Interest Interest % Cost
Rupees in ‘000
Govt. Bond (Public Sector Enterprises) 1-Jun-09 Annually 6% 755,859 755,859

Govt. Bond (Heavy Mechanical Complex) 1-Mar-09 Annually 6% 385,996 385,996
Govt. Bond (Shahnawaz Bhutto Sugar Mills) 30-Sep-09 Annually 6% 56,364 56,364
Govt. Bond (Public Sector Enterprises) 1-Jul-10 Annually 9% 1,132,963 1,132,963
6 months average of
Govt. Bond (Pakistan Engineering Company) Semi-annually Semi-annually weighted average yield of - 92,806
Govt. Bond (Pakistan Engineering Company) Semi-annually Semi-annually T.Bills ('8.5614%) - 53,212
2,331,182 2,477,200
1.2 Particulars of investments held in listed companies and Modarabas
1.2.1 Ordinary Shares

Market Value
2006 2005 2006 2005
Rupees in ‘000
Held-for-trading
Askari Commercial Bank 200,000 - 21,000 -

Azgard Nine - 28,000 - 1,302
Bank Al - Falah 250,000 - 10,462 -
Bank of Punjab 723,500 - 73,269 -
Callmate Telips Tellcom - 50,000 - 3,983
DG Khan Cement 56,990 90,000 3,598 9,594
Dewan Farooq Motors - 50,000 - 1,670
Fauji Fertilizer Bin Qasim 100,000 - 2,860 -
Faysal Bank 200,000 - 12,110
Hub Power Company Limited 1,297,000 498,500 35,029 11,964
ICI Pakistan - 50,000 - 7,025
Lucky Cement 65,500 - 3,933
MCB Bank 130,000 - 32,008
Nishat (Chunian) - 36,900 - 3,151
Oil & Gas Development Corporation 150,000 - 17,220
Pakistan Oil Fields 100,000 119,200 34,985 51,017
Pakistan Petroleum Limited 95,000 100,000 22,050 21,025
Pakistan State Oil 180,000 170,000 52,930 70,865
Pakistan Telecommunication Company Limited 150,000 - 6,655
Others* 72,629 60,355
* These include Rs. 73 million (2005 Rs. 60 million) of equity investments purchased and 400,738 241,951
simultaneously sold in future market with a view to generate a spread on the transaction.
Rating
Available-for-sale JCR-VIS PACRA
Al-Ghazi Tractors Limited Unrated Unrated 32,900 33,000 7,189 6,501

Al-Noor Sugar Mills Limited Unrated Unrated 43,300 255,300 1,310 5,042
Askari Leasing Limited Unrated A+ 8,500 44,350 230 1,464
Allied Bank Ltd A+ Unrated 25,000 - 2,338 -
Attock Cement Pakistan Ltd Unrated Unrated 100,000 - 6,610 -
Attock Petrolium Ltd Unrated Unrated 178,000 - 69,055 -
Baig Spinning Mills Limited Unrated Unrated 662,050 662,050 2,350 6,289
Bank Al Habib Unrated AA - 19,000 - 1
Bank Al Falah Ltd Unrated AA 1,354,033 - 56,599 -
Bankislami Pakistan Ltd Unrated Unrated 1,900,700 - 19,577 -
Bawany Sugar Mills Ltd Unrated Unrated 35,200 - - -
BOC Pakistan Unrated Unrated 61,957 25,486 8,745 4,473
Bolan Casting Limited Unrated Unrated 714,300 714,500 51,430 50,015
Brother Textile Mills Ltd Unrated Unrated 134,146 - 335 -
Cherat Cement Unrated Unrated 28,750 - 1,179 -
Chenab Limited Unrated Unrated - 736,000 - 15,456
Cherat Papersack Limited Unrated Unrated 190,800 190,800 8,157 12,593
Colony Textile Mills Unrated Unrated 1,451,166 - 12,625 -
Clariant Pakistan Limited 36,498 107,470 7,373 20,366
Cynamid (Wyeth Pakistan)
(Face value: Rs.100 each) Unrated Unrated - 1,544 - 3,026
Dandot Cement Limited Unrated Unrated 160,000 160,000 1,936 -
Dadabhoy Cement Industries Unrated Unrated 137,400 - 824 -
Dewan Automotive Engg. formerly:
Allied Motors Limited Unrated Unrated 1,001,333 - - -

2006 2005 2006 2005

Dewan Hattar Cement Limited
(formerly Saadi Cement Limited) Unrated Unrated 254,000 354,000 2,540 5,717
Dewan Cement Unrated A 1,502,000 1,000 15,771 18
Dewan Salman Fibres Limited Unrated Unrated 1,300,000 9,644 9,945 154
Escort Investment Bank Limited A Unrated 1,184,092 1,050,000 16,104 16,958
Faran Sugar Mills Limited Unrated Unrated - 267,500 - 4,227
Fauji Fertilizer Company Limited Unrated Unrated 4,619,908 5,897,260 487,631 807,925
Fauji Cement Industries Ltd Unrated Unrated 41,691 - 630 -
FFC Bin Qasim Unrated Unrated 477 - 14 -
Frontier Ceramics Limited Unrated Unrated 1,371,000 1,370,600 4,456 8,361
Faysal Bank Ltd AA AA 367,355 - 22,225 -
First Dawood Investment Bank Limited
(formerly: General Leasing Modaraba 1st.) Unrated A+ 2,507 17,437 40 425
First National Equity BBB Unrated 1,400,000 - 53,900 -
Glaxosmithkline (Glaxo Welcome) Unrated Unrated 103,683 108,848 16,366 20,273
Guardian Leasing Modaraba BBB+ Unrated 631,300 631,300 5,050 5,461
Ghribwal Cement Unrated Unrated 1,339,000 - 13,524 -
Habib Bank Modaraba 1st. Unrated Unrated 265,420 265,420 2,256 2,893
Haji Mohammad Ismail Mills Unrated Unrated 1,683,150 1,683,150 5,049 11,445
Hala Spinning Mills Limited Unrated Unrated 1,639,500 1,639,500 - -
Harum Textile Unrated Unrated 128,000 138,000 - -
Hub Power Company Limited Unrated Unrated 9,891,005 10,639,000 267,057 255,336
Honda Atlas Cars Unrated Unrated - 1,000 - 114
Inter Asia Leasing Company Limited Unrated Unrated 50,000 50,000 - 83
Junaid Cotton Mills Limited Unrated Unrated 32,800 32,800 - -
Kaisar Arts & Krafts Unrated Unrated 850,000 850,000 - 468
KASB Bank Limited Unrated BBB+ 760 760 12 11
Khairpur Sugar Mills Limited Unrated Unrated 3,088,000 3,088,000 - -
Kohinoor Mills Ltd Unrated Unrated 374,727 - 9,012 -
Khurshed Spinning Mills Unrated Unrated 60,400 - -
Kohinoor Weaving Mills Limited Unrated Unrated - 350,661 - 13,592
Kohinoor Textile Mills Limited Unrated Unrated 306,900 - 6,997 -
Kohinoor Industries Ltd Unrated Unrated 88,558 - 961
Kohat Cement Unrated A 280,500 - 8,920 -
Kohat Textile Mills Unrated Unrated 2,906,900 - 10,756 -
Kot Addu Power Co Unrated Unrated 494,100 - 20,110 -
Lucky Cement Unrated Unrated 58,449 - 3,501 -
Libaas Textile Limited Unrated Unrated 250,000 250,000 - -
Mehran Modaraba 1st. Unrated Unrated 1,000 1,000 2 2
Mehran Sugar Mills Limited Unrated Unrated - - - -
(Face value: Rs.5 each) Unrated Unrated 500 35,500 12 632
Millat Tractors Limited Unrated Unrated 407,160 339,300 114,819 100,263
Mirza Sugar Mills Limited Unrated Unrated 627,740 900,000 1,789 3,015
Modaraba Al-Mali Unrated A- - 23,004 - 213
Mohib Textile Unrated Unrated 425,600 425,600 - -
MCB Bank Unrated AA+ 89,491 - 22,024 -
Muhammad Farooq Textile Unrated Unrated 41,008 - 232 -
National Refinery Limited Unrated AAA - - - -
NIB (NDLC-IFI Bank) Unrated A+ 174,373 174,373 4,255 6,077
Nishat Mills Unrated A+ 400,180 50,000 35,136 5,675
Nishat Chunian Unrated Unrated 332,000 - 12,666 -
Oil & Gas Development Corporation Unrated Unrated 185,655 1,529,318 21,295 180,460
Orix Leasing Pakistan Limited AA(p) AA+ 182,735 182,735 4,477 5,336
Packages Limited Unrated AA 168,167 153,167 35,315 30,940
Pakistan Engineering Company Limited Unrated Unrated 135,240 135,240 13,254 12,983
Pakistan Oilfields Limited Unrated Unrated - 220,500 - 94,374
Pakistan Reinsurance Unrated Unrated - 27,500 - 2,393
Pakistan Synthetic Unrated Unrated 22,500 - 158 -
PTA Pakistan Limited Unrated Unrated 70,296 - 344 -
Pakistan State Oil Company Limited Unrated AAA 161,567 320,969 47,501 133,796
Pakistan Petrolium Unrated Unrated 25,472 - 5,910 -
Pangrio Sugar Unrated Unrated 800 600,400 - -
Parke Davis Company Limited Unrated Unrated - - - -
Pakistan International Airlines Corporation 20,122,813 20,260,813 141,866 249,208
"A-class" Unrated Unrated
Pakistan National Shipping Corporation Unrated Unrated 399,636 386,236 16,625 37,195
Pakistan Telecommuniction Company Limited Unrated Unrated 1,966,240 3,532,300 87,104 231,012
Punjab Oil Mills Limited Unrated Unrated 307,850 307,850 8,081 7,542
Balance carried forward 1,813,554 1,892,936


2006 2005 2006 2005
Balance brought forward 1,813,554 1,892,936
Prime Commercial Bank Unrated A+ 56,562 - 2,746 -

Redco Textile Mills Limited Unrated Unrated 1,300 1,300 - -
Saif Textile Mills Limited A- Unrated 6,000 6,308 93 170
Sahrish Textile Ltd Unrated Unrated 107,543 - -
Sakrand Sugar Mills Limited Unrated Unrated 3,896,000 3,801,600 12,272 15,967
Saudi Pak Commercial Bank Limited A- Unrated 20,410 - 346 -
Searle Pakistan Limited BBB Unrated 76,909 129,780 1,969 5,386
Shahmurad Sugar Mills Limited Unrated Unrated - -
(Face value: Rs.5000 each) Unrated Unrated - 47,300 - 473
Shell Pakistan Limited Unrated Unrated 257,202 272,562 102,379 215,869
Siemens (Pakistan) Engineering Company Ltd. Unrated Unrated 200,000 200,000 220,000 175,000
Sitara Chemicals Industries Limited Unrated Unrated 118,894 118,894 12,722 16,823
Soneri Bank Limited Unrated AA- - - - -
Southern Electric power Unrated Unrated 111,148 - 661 -
Standard Chartered Modarba Ist Unrated AA+ 1,268,956 1,153,597 19,288 24,918
Sui Northern Gas Pipeline Company Limited Unrated AA- 6,426,429 5,842,209 420,931 397,270
Sui Southern Gas Pipeline Company Limited Unrated Unrated - 758,694 - 20,295
Sunshine Cloth Mills Unrated Unrated 150,000 150,000 - -
Sunshine Cotton Mills Limited Unrated Unrated 281,250 281,250 - -
SME Leasing BBB+ Unrated 1,230,477 - 13,535 -
Taj Textile Mills Limited Unrated Unrated 44,775 375 123 1
TRG Pakistan Limited Unrated Unrated - 6,773,000 - 89,742
Twakkal Garments Industries Limited Unrated Unrated 112,500 112,500 - -
Unilever (Pakistan) Limited Unrated Unrated
(Face value: Rs.50 each) Unrated Unrated 139,740 140,000 279,478 248,500
Unity Modaraba Unrated Unrated 1,000,000 100,000 - -
World Call Telecom Unrated A+ 1,081,259 - 11,624 -
Yousuf Weaving Mills Unrated Unrated 21,711 - 119 -
Total 2,911,840 3,590,217
3,312,578 3,832,168
Cost of the above held-for-trading and available-for-sale investments amounted to Rs.399 million (2005: Rs.243 million) and Rs. 1,426 (2005: Rs. 1,306
` million) respectively.
1.2.2 Particulars of Investment hled in un-listed companies
1.2.2.1 Ordinary Shares - Holding 10%

Percentage No. of Cont of Investment Break-up Based on Name of
Investee of holding Rating Shares 2006 2005 value of accounts Chief Executive
JCRVIS PACRA held Rupees in ‘000 investment as at
Avari Hotel Limited 12.7% Unrated Unrated 9,459,200 - 94,592 (6,338) June 30,2000 Mr. Byram D Avari
Digri Sugar Mills Limited 19.1% Unrated Unrated 2,000,000 4,063 4,063 8,126 Sep 30,1999 Mr. Naveed Ahmad Javeri
Engine System 16.5% Unrated Unrated 788,500 - - (10,132) June 30,1998 Mr. Javed Burki
First Women Bank Limited 10.6% Unrated Unrated 2,532,000 21,100 21,100 62,667 Dec. 31, 2005 Ms. Zareen Aziz
Gelcaps Pakistan Limited 14.6% Unrated Unrated 2,000,000 4,665 4,665 25,340 30-Jun-06 Mr. Sadruddin Hashwani
Intech International 18.6% Unrated Unrated 275,000 - - Not Available Mr. Hassan Zaidi
Investment Corporation of Pakistan
(Face value: Rs.100 each) 19.9% Unrated Unrated 398,000 - 36,337 262,317 June 30,2005 Mr. Tariq Iqbal Khan
Pakistan Agriculture Storage Service Corp.
(Face value: Rs.1,000 each) 18.3% Unrated Unrated 5,500 5,500 5,500 109,831 March 31,2003 Maj. Gen. Fahim Akhter Khan
Precision Engineering 16.8% Unrated Unrated 15,100 - - Not Available Mr. Zaheer Hussain
Resources and Engineering Management 10.0% Unrated Unrated 66,125 - - (484,696) June 30,2005 Mr. Shafaat Ahmed
Corporation
Safa Rice Mills Limited 15.8% Unrated Unrated 450,000 - -

Not Available Mr. Pervaiz Alam
Sigma Knitting Mills 14.1% Unrated Unrated 500,000 - - (6,793) June 30,1999 Mr. Nasir Sadruddin
Pakistan Textile City Unrated Unrated 5,000,000 50,000 50,000 50,650 June 30,2006
85,328 216,257
1.2.2.2 Ordinary Shares - Holding below 10%

Rating No. of Cont of Investment Break-up Based on Name of
Investee JCRVIS PACRA Shares 2006 2005 value of accounts Chief Executive
held Rupees in ‘000 investment as at
Al Ameen Textile Unrated Unrated 32,800 328 328 Not available

Al Zamin Modarba Management A- Unrated 140,000 1,000 1,000 2,048 June 30, 2006 Mr. Bashir A. Chaudhry
Arabian Sea Country Club Unrated Unrated 650,000 - - 4,067 June 30, 2002 Mr. Aslam Mohsin ali
Attock Textile Mills Limited Unrated Unrated 100,000 948 1,000 (1,412) Sept. 30, 1998 Mr. Arshad Ali Chaudhry
Brikks Pvt Limited Unrated Unrated 39,050 - - Not available
Equity Participation Fund Unrated Unrated 28,000 2,800 2,800 15,410 June 30, 2006 Mr. Muhammad Akhter
F.T.C. Management Unrated Unrated 50,000 250 250 366 June 30, 2005 Mr. Rehan-ul Ambia Riaz
Fauji Oil Terminals Unrated Unrated 1,088,600 10,886 10,886 22,541 June 30, 2006 Col ( R) Ali Abbas
Fortune Securities Limited Unrated Unrated 500,000 5,000 5,000 4,917 June 30, 2006 Mr. Kamran Ahmed Khalili
Frontier Textile Mills Limited Unrated Unrated 50,000 500 500 272 Sep. 30, 2002 Not available
Gulistan Power Generation Limited Unrated Unrated 220,000 2,200 2,200 8,096 June 30, 2000 Mr. Abdul Shakoor
Hazara Woolen Mills Limited Unrated Unrated 20,000 200 200 Not available
Insecta Pakistan Limited Unrated Unrated 50,000 - - 315 June 30,1997 Mr. Syed Tauqeer Haider
Indus Sugar Unrated Unrated 594,807 5,948 5,948 (4,829) Sep 30,2003 Not available
Kashmir Textile Unrated Unrated 82,500 825 - Not available
Kronos Corporation Unrated Unrated - - - Not available
Kaytex Mills Limited Unrated Unrated 377,800 3,778 3,778 Not available
Mohib Textile Mills Limited Unrated Unrated 125,600 - - Not available
Muslim Ghee Mills Limited Unrated Unrated 181,000 1,810 - Not available
Myfip Video Industries Unrated Unrated 537,300 5,373 - Not available
National Construction Limited Unrated Unrated 50,000 250 - 597 June 30, 2005 Mr. Ali Mohammad Shaikh
National Fulltraton Asset Management Co. Ltd Unrated Unrated - - - Not available
National Institute of Banking and Finance Unrated Unrated 200,000 20,000 - 3,481 June 30, 2006 Mr. Kazi Abdul Muktadir
National Film Development Corporation Limited Unrated Unrated 10,000 - - (1,827) June 30, 2000 Mr. Sajjad Haider
National Industry Cooperative Bank of Gujrat Unrated Unrated 10 - - Not available
National Institution of Facilitation Technology (Pvt) Ltd Unrated Unrated 353,029 1,526 1,526 19,867 June 30, 2006 Mr. M. M. Khan
National Investment Trust Unrated Unrated 52,800 100 100 130,081 June 30, 2006 Mr. Tariq Iqbal Khan
National Woolen Mills Limited Unrated Unrated 18,300 183 183 Not available
Newyork Poly Clinic of Karachi Unrated Unrated 220,133 - - (241) June 30,1998 Mr. Akhter Aziz khan
Nowshehra Engineering Works Limited Unrated Unrated 4,950 41 41 Not available
Pakistan Paper Corporation Limited Unrated Unrated 37,250 373 373 Not available
Pakistan Tourism Development Corporation Unrated Unrated 100,000 100 100 24,983 June 30,1996 Not available
Pakistan Export Finance Guarantee Agency Limited Unrated Unrated 1,152,938 11,529 11,529 79,281 2004
People Steel Mills Limited Unrated Unrated 1,076,880 3,276 3,276 Not available
Phalia Sugar Mills Limited Unrated Unrated 1,087,949 - 3,111 Not available
Qadri Textile Mills Limited Unrated Unrated 50,000 500 - Not available
Refrigerator Manufacturing Company Limited Unrated Unrated 45,737 4,589 4,589 Not available
Rousch Power Pakistan Limited Unrated Unrated 39,729,000 132,888 132,888 5,799 June 30,2006 Mr. Naseem Akhter
Ruby Rice and General Mills Limited Unrated Unrated 75,000 750 750 Not available
SARF Unrated Unrated 5,000 287 287 Not available
Shoaib Capital Unrated Unrated 100,000 272 272 544 Dec 31,04 Mr. Kandia Balendra
SME Bank Limited BBB Unrated 4,590,936 26,950 26,950 72,032 June 30,2000 Not available
Star Salica Industries Limited Unrated Unrated 26,650 267 267 June 30, 2006 Mr. Mansur Khan
Sunshine Cloth Mills Unrated Unrated 150,000 - - Not available
Transmobile Limited Unrated Unrated 644,508 - - (44) June 30,1997 Mr. Javed Burki
Zafar Textiles Mills Ltd. Unrated Unrated 247,100 256 256 Not available
Zulsham Engineering Works Limited Unrated Unrated 3,300 330 330 Not available
246,313 217,607
331,641 433,864
All shares have a face value of Rs.10 unless otherwise mentioned.

1.3 Particulars of Investments held in units of mutual funds

Rating
No. of shares/certifcates held
Market Value/Cost
JCRVIS PACRA 2006 2005 2006 2005
Listed: Rupees in ‘000
ABAMCO Composite Fund Unrated Unrated - 2,500,000 - 23,875

ABAMCO Stock Market Fund Unrated Unrated - 131,003 - 2,103
AKD Index Tracker Fund Unrated Unrated 4,159,350 4,159,350 41,178 38,058
AMZ Plus Income Fund A(f) Unrated
(nominal value: Rs. 100 each) 141,423 - 15,019 -
Askari Income Fund Unrated Unrated 495,540 - 52,616 -
Atlas Fund of Funds Unrated 5-Star 1,159,500 84,000 9,276 748
Atlas Income Fund
(nominal value: Rs. 500 each) Unrated 5-Star 500,000 117,013 26,220 61,541
Atlas Islamic Fund Unrated Unrated 100,000 - 50,000 -
Atlas Stock Market Fund Unrated 5-Star 100,000 - 55,288 -
BSJS Balanced Fund Unrated 5-Star 1,237,500 1,237,500 14,108 16,706
Dawood Money Market Fund Unrated 5-Star
(nominal value: Rs.100 each) 190,518 234,254 20,085 24,526
Faysal Balance Growth Fund
(nominal value: Rs.100 each) 3-Star Unrated 792,354 500,000 79,546 63,175
Faysal Income and Growth Fund
(nominal value: Rs.100 each) A+(f) Unrated 46,874 - 4,985 -
First Dawood Mutual Fund Unrated 4-Star 5,842,809 5,080,704 37,102 47,505
Meezan Balanced Fund Unrated 4-Star 5,928,500 - 50,985 -
Meezan Islamic Fund-Type-A Series
(nominal value: Rs.50 each) 5-Star 5-Star 1,475,772 1,000,400 89,638 75,300
NAFA Cash Fund 5(f) Unrated 12,500,000 - 131,500 -
NAFA Multi Asset Fund Unrated Unrated 7,500,000 - 75,000 -
NAFA Stock Fund Unrated Unrated 7,500,000 - 75,000 -
NAMCO Balanced Fund Unrated Unrated 2,000,000 - 20,000 -
Pakistan Capital Market Fund Unrated 3-Star 4,628,163 4,575,500 52,992 67,854
Pakistan International Element Islamic Fund Unrated Unrated 300,000 - 14,361 -
Pakistan Premier Fund Unrated 4-Star 416,025 - 4,999
Pakistan Strategic Allocation Fund Unrated 4-Star 4,500,000 4,500,000 38,250 52,650
PICIC Energy Fund Unrated Unrated 1,380,520 1,500,000 10,630 -
PICIC Growth Fund
(formerly: Investment Corporation of Pakistan - SEMF) 4-Star Unrated 7,703,051 7,168,875 216,841 355,576
PICIC Income Fund Unrated Unrated 524,500 - 7,605 -
PICIC Investment Fund 3-Star Unrated 137,277 - 1,991 -
Reliance Income Fund Unrated Unrated 300,000 - 15,312 -
UTP Growth Fund Unrated Unrated 352,754 - 4,586 -
UTP Large Capital Fund Unrated 4-Star 3,466,500 2,090,500 27,732 19,96400
J.S. ABAMCO Limited (Formerly UTP ABAMCO Limited)
(nominal value: Rs.5,000 each) Unrated AM 2+ 26,427 15,000 194,687 121,860
1,437,532 971,441
Cost of the above investment amounted to Rs. 1,145 million (2005: Rs. 688 million)
Unlisted:
Atlas Stock Market Fund Unrated 5-Star 100,000 - 62,882

Meezan Balanced Fund Unrated 4-Star 5,000,000 - 48,750
- 111,632
1,437,532 1,083,073
All certificate have a nominal value of Rs. 10 per unit unless otherwise mentioned
1.4 Particulars of Investments held in Preference shares
Rating
Cumulative Rate No. of certificate held
non- Market Value / Cost
JCRVIS PACRA 2006 2005 2006 2005
cummlative
Rupees in ‘000
Listed:
Chenab Limited Unrated Unrated Cumulative 9.25% 10,000,000 10,000,000 71,500 90,700
Cost of the above investment

amounted to Rs.100 million
(2005: Rs.100 million)
Unlisted:
Dalda Food Unrated Unrated Cumulative 8.75% 9,300,000 9,300,000 93,000 93,000
Jamshoro Joint Venture limited Unrated Unrated Cumulative 15.00% 2,500,000 2,500,000 25,000 25,000
Pak Elektron Limited Unrated Unrated Cumulative 9.50% 13,000,000 13,000,000 130,000 130,000
South Asia Regional Fund
(Face value: USD 1 each) Unrated Unrated Cumulative 8.00% 3 1,093 184 65,500
Masood Textile Mills Unrated Unrated Floating 12.65% 10,000,000 10,000,000 50,000 50,000
298,184 363,500
369,684 454,200
1.5 Debentures, Bonds, Participation Term Certificates and Term finance certificate
1.5.1 Term finance certificate

Investee Rate of Profit Maturity Long Term No. of certificate held Market Value
Interest Payment Rating
2006 2005 2006 2005
Al - Zamin Leasing Modoraba * 9.5% Half yearly 2.06.2008 BBB+ 1,902 1,902 9,510 9,510
Al-Zamin Leasing Modarba * 12.65% Yearly 31.05.2010 BBB+ 1,903 1,903 9,515 9,515
Azgard Nine Ltd * 11.45% Half yearly 17.8.2012 A 20,000 20,000 99,960 100,000
6 month Kibor - 2.4%
Azgard Nine Ltd * 2.40% above Half yearly 20.09.2012 A 4,000 4,000 19,992 20,000
6 month Kibor 39,984 39,984
Bank Al-Habib Limited * 10.55% Half yearly 28.06.2012 AA 199,840 199,920
6 month Kibor + 1.5 % 3,000 3,000
Bank Al-Habib Limited * 0.65% above cut of yield of last Half yearly 15.07.2012 AA 14,988 14,994
successful five years PIBS with 4.5 % as floor & 9.5% as ceiling 1,030 1,030
Crescent leasing corporation limited -2nd issue* 2.00% above the cut of yeild of last SBP Half yearly 05.09.2007 A- 5,272 5,273
auction of 5 years PIBS with 12% as floor & 15.75% as ceiling
Sui Southern Gas Company Limited * 13.00% Half yearly 26.05.2006 Unrated - 4,540 - 24,288
3-5 year discount rate 9% + 1.1%
Soneri Bank Limited * 10.65% Half yearly 31.3.2013 AA 26,995 26,995 134,919 134,973
Tele Card Limited * 3.75% above 6 month KIBOR Half yearly 22.04.2011 BBB 7,000 7,000 32,799 34,993
Trust Leasing Limited * 2% above SBP discount rate with 9% as Half yearly 03.06.2008 AA 2,379 2,379 9,097 11,443
floor and 14.00% as ceiling
Trust Leasing Limited -2nd issue * 2% above 6 month KIBOR with Half yearly - AA - 1,807 - 9,035
no floor and ceiling
United Bank Limited * 10.39% Half yearly 16.06.2012 AA 16,903 16,903 84,480 84,513
8 year PIB Reuter Page PKRV@8.62%
Sitara Chemical Industries Limited SUKUK * 12.07% Quarterly 30.06.2011 AA- 80,000 - 456,000 -
3 month Kibor + 2.5%
Sitara Chemical Industries Limited * 12% Half yearly 20.06.2007 AA- 1 1 2 4
*
Sui Southern Gas Company Limited -2nd issue 1.10% above SBPs discount rate with Half yearly 04.06.2007 Unrated 5,001 5,001 4,658 13,990
11.50, as floor and 16.00 as ceiling
World Call Telecom * 2.75% above 6 months KIBOR Half yearly 28.11.2011 AA- 3,000 - 17,250 -
12.65%
Financial Receivable Securitization Co. Ltd. 6 month KIBOR + 2% Half yearly 27.12.2013 AA- 5,000 - 25,000 -
All term finance certificate have a face value of Rs. 5,000 each unless otherwise mentioned 1,123,282 672,451
Term finance certificate - Unlisted Rate of Profit Maturity Long Term No. of certificate held
Interest Payment Rating Market Value/cost
2006 2005 2006 2005
Investee
Rupees in ‘000
Ados Pakistan Limited - - - Unrated - - - -

Agro Dairies Limited 22.00% Overdue Overdue Unrated 20 20 4,237 4,237
Al-Azhar Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 5,168 5,168
Al-Faham Textile Mills Limited 22.00% Overdue Overdue Unrated - 14 - 1,907
Al-Qaim Textile Mills Limited 22.00% Overdue Overdue Unrated 16 16 357 357
Apex Fabrics Limited 22.00% Overdue Overdue Unrated 16 16 2,640 2,640
Aqma Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 4,160 4,466
Aruj Textile Mills Limited 22.00% Overdue Overdue Unrated 5 5 - 493
Aswan Tentage & Canvas Mills Limited 22.00% Overdue Overdue Unrated 1 1 3,643 3,643
Atlas Investment Bank Limited - 2nd Issue 15.00% Half Yearly 15.08.2006 Unrated - 1 - 2
Azeem Tapes (Pvt) Limited 22.00% Overdue Overdue Unrated 34 34 2,279 2,582
Bachani Sugar Mills Limited 22.00% Overdue Overdue Unrated 28 28 35,896 35,896
Baluchistan Cotres Limited 22.00% Overdue Overdue Unrated 22 22 2,745 2,745
Bank Al-Falah Limited 1.35% above cutt-off yield of the Half Yearly 19.12.2008 AA- 6,422 6,422 33,880 34,680
Last SBP auction of five year PIBS
Bankers Equity Limited 22.00% Overdue Overdue Unrated 10 10 104,449 104,449
Bela Chemical Limited * 22.00% Overdue Overdue Unrated 24 24 24,595 24,595
Bentonite Pak Limited 22.00% Overdue Overdue Unrated 31 31 3,417 3,417
Blue Star Spinning Mills Limited 22.00% Overdue Overdue Unrated 17 17 2,252 2,252
Bosicor Pakistan Ltd 13.00% Half yearly 12.2.2010 Unrated 20 20 86,190 100,000
6 month Kibor + 6.79 % - -
Brother Steel Limited 22.00% Overdue Overdue Unrated 17 17 3,094 3,094
Cast-N-Link Product Limited 22.00% Overdue Overdue Unrated 16 16 2,549 2,549
Crescent Commercial Banbk Limited (Formerly 3.00% above weigthed average yield of last Half Yearly 23.10.2006 Unrated - 11,000 - 27,539
Mashriq Bank Pakistan Limited) three cut off of thee years PIBS
Crescent Standard Investment Bank Limited * 2.00% above SBPs discount rate Half Yearly 08.07.2007 Unrated 1,000 1,000 2,356 3,332
(Formerly First Standard Investment Bank Limited)
Chaudhry Wire Rope Industries Limited 22.00% Overdue Overdue Unrated 14 14 1,565 1,565
Chiniot Textile Mills Limited 22.00% Overdue Overdue Unrated 6 6 1,185 1,185
Chiragh Sun Engg Limited 22.00% Overdue Overdue Unrated 6 6 1,865 2,486
Dadabhoy Cement Limited - - - Unrated - - - -
Danneman Fabrics Limited * 22.00% Overdue Overdue Unrated 14 14 3,283 4,584
Dawood Leasing Company Limited 10.75% Half Yearly 07.09.2006 Unrated - 5,000 - 25,000
Discount Rate 9% + 1.75% - -
Development Securitisation Trust 4.00% above 90 days average of ASK rates of Quarterly 18.03.2007 BBB- 3,000 3,000 3,406 7,935
six months KIBOR for first semi annual
payment, subsequently 30 days average of three
Faruki Pulp Mills Limited 22.00% Overdue Overdue Unrated 14 14 17,550 17,550
Frontier Ceramics Limited * 22.00% Overdue Overdue Unrated 46 46 3,517 3,563
First Dawood Investment Bank Limited -2nd Issue1.75% above SBPs discount rate with 12.25% Half yearly 27.07.2007 AA- 1,000 1,000 5,011 5,041
(Formerly Dawood Leasing Co. Ltd.) * as floor and 16.25% as cealing
First Dawood Investment Bank Limited - 1st* Issue1.75% above SBPs discount rate with 13.50% Half yearly 12.06.2006 Unrated - 615 - 3,120
(Formerly Dawood Leasing Co. Ltd) as floor and 17.50 as cealing
First International Investment Bank 2.25% above six month KIBOR Overdue 11.07.2011 Unrated 1,190 - 6,000 -
General Diaries & Food Limited 22.00% Overdue Overdue Unrated 6 6 1,350 1,350
Glorex Textile Mills Limited 22.00% Overdue Overdue Unrated 1 1 927 924
Grays Leasing Limited 3.75% above Government Treasury Bills cut-off Half yearly 13.01.2008 A- 4000 4000 7,500 12,500
rate of last one year
Gulistan Textile Mills Limited 14.00% Half Yearly 29.08.2006 Unrated - 3,331 - 16,653
SBP Discount Rate + 2% - -
Gulistan Textile Mills Limited - 1st issue 2.00% above SBP’s discount rate Half Yearly 05.09.2006 Unrated - 1 - 3
Gypsum Corporation Limited 22.00% Overdue Overdue Unrated 10 10 900 900
Hospitex International Limited 22.00% Overdue Overdue Unrated 16 16 511 511
Hub Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 - 3,887
Indus Sugar Mills 22.00% Overdue Overdue Unrated - - 1,015 10,390
Jamshoro Joint Venture - -
(Face value of Rs. 5,000,000) 9.94% Half Yearly 15.4.2009 Unrated 9 9 28,125 39,375
PIB 5 year latest cut off yield - -
Jahangir Siddiqui & Company Limited 10.55% Half Yearly 17.05.2014 AB+ 39,960 39,976 199,800 199,880
Javedan Cement Ltd. 13.15% Half Yearly 22.08.2011 Unrated - - 1,400,000 -
Kamal Ghee & Allied Industries Limited 22.00% Overdue Overdue Unrated 14 14 4,238 4,238
Kashmir Polytex Limited 22.00% Overdue Overdue Unrated 16 16 1,483 1,483
Khairpur Sugar Mills Limited 22.00% Overdue Overdue Unrated 28 28 5,128 5,128
Kiran Sugar Mills Limited 22.00% Overdue Overdue Unrated 24 24 8,706 10,914
Larr Sugar Mills Limited 22.00% Overdue Overdue Unrated 14 14 9,929 12,688
Latif Bawany Textile Mills Limited 22.00% Overdue Overdue Unrated 38 38 2,380 2,380
Balance carried forward 2,039,281 765,276
Term finance certificate - unlisted
Profit Maturity Long Term No. of certificate held
Rate of
Payment Rating Market Value/cost
Interest
2006 2005 2006 2005
Investee Rupees in ‘000
Balance forward 2,039,281 765,276

Malik Food Industries Limited 22.00% Overdue Overdue Unrated 11 11 2,472 2,472
Minaco Fabrics Limited 22.00% Overdue Overdue Unrated 14 14 7,350 7,350
Munalisa Fruit Juices - - - Unrated 2 14 1,500 -
Mumtaz Shahbaz Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 - 1500
Munawar Engineering Company Limited 22.00% Overdue Overdue Unrated 28 28 2,043 2,043
Munro & Millar Mills Limited 22.00% Overdue Overdue Unrated 20 20 1,113 1,113
National Fructose Company Limited 22.00% Overdue Overdue Unrated 14 14 1,450 1,450
National Tiles & Ceramics Limited 22.00% Overdue Overdue Unrated 16 16 - 941
National Tiles & Ceramics Limited 22.00%
Nishat Mills Limited * 9.84% Half yearly 29.08.2008 Unrated 149,880 149,940 599,400 749,400
Weighted Average of last 3 cut off rate
6 month T-Bills 8.1388% + 1.7%
Novelty Fabric Processing Limited 22.00% Overdue Overdue Unrated 38 38 12,896 13,870
Orix Leasing Pakistan Limited - 2nd Issue 2.00% above SBPs discount rate Half Yearly 25.06.2006 Unrated - 1000 - 5,550
Pak Pattan Dairies Limited 22.00% Overdue Overdue Unrated 14 14 2,954 3,146
Pakistan International Airlines Corp. Ltd * 10.00% Half yearly 26.02.2011 Unrated 647,424 682,473 3,237,371 3,412,364
SBP Discount Rate + 50 bps
Pakistan International Airlines Corp. Ltd * SBP Discount rate + 50 bps Half Yearly 20.02.2011 Unrated 25,000 25,000 115,112 121,870
Pakistan Mobile Communication (Private) Ltd.2.00% above average of the last Half yearly 16.09.2008 AA- 5,000 5,000 21,006 24,603
three six monthTreasury bill cut-off-yeilds
Pakistan Laminates Limited 22.00% Overdue Overdue Unrated 1 1 95 95
Pakistan Services Limited * 11.75% Half Yearly 16.09.2008 A 19,074 28,611 95,371 143,057
BR + 2.5% SBP Discount Rate 9%
Pakistan Services Limited 2.25% above SBPs discount rate Half Yearly 12.11.2008 A 3,318 3,318 9,895 13,787
Dewan Cement (Pakland Cement) * 11.55% Half yearly 15.07.2013 Unrated 26 26 261,172 313,052
Pangrio Sugar Mills Limited 22.00% Overdue Overdue Unrated 16 16 1,683 2,057
Pirjee Weaving Mills Limited 22.00% Overdue Overdue Unrated 16 16 403 857
Prime Commercial Bank Limited * 12.55% Half Yearly 08.12.2012 A+ 21,991 21,996 109,956 109,978
Pak Kuwait Investment Ltd. F * 11.82% Quarterly 22.02.2011 AAA 150,000 - 750,000 -
Pak Kuwait Investment Ltd. G * 11.82% Quarterly 22.02.2011 AAA 100,000 - 500,000 -
Prometals Limited 22.00% Overdue Overdue Unrated 20 20 - 763
Qand Ghar (Pvt) Limited 22.00% Overdue Overdue Unrated 2 2 2,706 2,706
Qand Ghar Sugar Mills Limited 22.00% Overdue Overdue Unrated 14 14 7,915 7,915
Rai Textile Mills Limited 22.00% Overdue Overdue Unrated 6 6 - 510
Raja Weaving Mills Limited Overdue Overdue Unrated 14 14 3,831 3,831
Regency Textile Mills Limited 22.00% Overdue Overdue Unrated 24 24 6,081 6,081
Rehman Sharif Textile Mills Limited 22.00% Overdue Overdue Unrated 14 14 702 973
Reliance Pak Arab fartilizar Co.Ltd * 13.15% Half yearly 13.7.2013 Unrated 120 - 1,200,000 1,200,000
(Face value of Rs. 10,000,000) 6 month Kibor + 2.5 %
Reliance Weaving Mills Limited 2.25% above SBPs discount rate Half yearly 07.02.2007 A- - 1 - 3
Dewan Hattar Cement (Saadi Cement) * 11.55% Half yearly 15.7.2013 A 26 26 810,461 972,037
Sarela Cement Limited 22.00% Overdue Overdue Unrated 32 32 6,749 6,748
Scan Recycling (Pak) Limited 22.00% Overdue Overdue Unrated 17 17 774 774
Seri Sugar Mills Limited 22.00% Overdue Overdue Unrated 24 24 5,423 5,423
Shah Jewana Textile Mills Limited 22.00% Overdue Overdue Unrated 26 26 104 104
Shazeb Industries Limited 22.00% Overdue Overdue Unrated 14 14 2,202 2,202
Sialkot Dairies 22.00% Overdue Overdue Unrated 13 13 2,320 2,320
Silverland Textile Mills Limited 22.00% Overdue Overdue Unrated 6 6 1,650 1,650
Sind Textile Industries 22.00% Overdue Overdue Unrated 15 15 7,445 7,445
Sinsas Enterprises Limited 22.00% Overdue Overdue Unrated 2 2 4,302 4,302
Star Silica International 22.00% Overdue Overdue Unrated 16 16 1,799 1,799
Sui Southern Gas Company Limited - 1st issue 1.10% above SBPs discount rate with Half Yearly 01.06.2006 Unrated - 273 - 262
14.15% as floor and 18.00% as ceiling for the first two
years and thereafter a floor of 13.00% and a
cooling of 18.00%
22.00%
Sunflo Juices Limited 22.00% Overdue Overdue Unrated 28 28 748 7,686
Taj Syringes (Pvt) Limited 22.00% Overdue Overdue Unrated 36 36 4,917 5,606
Tanocraft Limited 22.00% Overdue Overdue Unrated 22 22 1,315 1,315
Tawakkal Garments Industries Limited 22.00% Overdue Overdue Unrated 16 16 759 759
Tharparkar Sugar Mills Limited 3.75% above Government Treasury Bills Overdue Overdue Unrated 5 5 23,332 23,332
Transport Securitisation Trust cut-off rate of last one year Quarterly 28.01.2007 Unrated 2000 2000 833 3,769
22.00%
Trubo Tubes Limited 22.00% Overdue Overdue Unrated 2 2 122 122
Ultra Engineering Industries Limited 22.00% Overdue Overdue Unrated 16 16 1,211 1,211
Waleed Leather Industries Limited 22.00% Overdue Overdue Unrated 38 38 2,196 2,196
Zamir Textile Mills Limited 13.90% Overdue Overdue Unrated 14 14 7,516 7,516
Zaver Petroleum Ltd. 6 month kibor + 3.25% - -
Half yearly 10.07.2011 10,000 - 50,000 -
9,929,936 7,977,192
* Cost of the above TFCs amounted to Rs. 10,457 million (2005: rs. 6,786 million)
1.5.2 Debentures

Rupees in ‘000
Investee
Aaj Textile Mills Limited Outstanding Outstanding 14% 1,005 1,005

Aaj Textile Mills Limited Outstanding Outstanding 12.5% 270 270
Ajax Industries Limited Overdue Overdue 11% 1,397 1,397
Ajax Industries Limited Overdue Overdue 14% 269 269
Ali Asbestose Industries Limited Overdue Overdue 14% 175 175
Ali Asbestose Industries Limited Overdue Overdue 11% 1,510 1,510
Alleey Hosiery Mills Limited - - - - -
Allied Ghee Industries Limited Overdue Overdue 14% 1,141 1,141
Allied Ghee Industries Limited Overdue Overdue Interest free 572 572
Allied Marbles Industries Overdue Overdue 14% 23 23
Allied Marbles Industries Overdue Overdue Interest free 15 15
*
Aslo Electrical Industries Outstanding Outstanding 11% 2,270 2,270
Aslo Electrical Industries Outstanding Outstanding 14% 6 6
Attock Textile Mills Limited Regular Regular 14% - 432
Azad Kashmir Mineral Development Corporation Overdue Overdue 12.5% 2,336 2,336
*
Chillya Corrugated Board Overdue Overdue 14% 318 318
Colony Textile Mills Limited Outstanding Outstanding Interest free - 184
Consolidated Spinning & Textile Mills Limited Overdue Overdue 14% 180 180
Consolidated Sugar Mills * Overdue Overdue 14% 1,875 1,875
Daaman Oil Mills Overdue Overdue 14% 204 204
Effef Industries Limited Overdue Overdue 14% 1,799 1,799
Effef Industries Limited Overdue Not Applicable Interest free 3,828 3,828
Electric Lamp Manufacturing Outstanding Outstanding 11% 75 75
Electric Lamp Manufacturing Overdue Overdue 14% 150 150
*
Hassan Tanneries Limited Outstanding Outstanding 14% 437 437
Hassan Tanneries Limited * Outstanding Outstanding 12.5% 58 58
Hazara Woolen Mills. * Overdue Overdue 14% 1,148 1,148
Junaid Cotton Mills Limited Overdue Overdue 12.5% 165 165
Junaid Cotton Mills Limited Overdue Overdue 14% 470 990
Karachi Development Authority Overdue Overdue 12.5% 156,034 156,034
Khyber Textile Mills Limited Overdue Overdue 14% 1,000 1,000
Lahore Dyeing & Printing Mill Outstanding Outstanding 11% 1,013 1,013
Lahore Engineering Foundary Works Regular Regular 5% - 1,160
Mansoor Textile Mills Overdue Overdue 14% 510 510
National Woolen Mills Overdue Overdue 14% 66 134
Pakistan Paper Corporation Overdue Overdue 11% 506 506
Pakistan Polypropylene Packages Limited Outstanding Outstanding 14% - 2
Progressive Tobacco Co. Overdue Overdue 14% 144 144
Qadri Textile Mills Limited Overdue Overdue 14% 489 489
Regal Ceramics Limited Overdue Overdue 14% 105 105
Rising Sun Knitwear Industries Overdue Overdue 14% 57 57
Rose Textile Mills Limited Overdue Overdue 14% 740 740
Saleem Tanneries Project 1 Overdue Overdue 12.5% 1,302 1,302

Rupees in ‘000
Investee
Balance brought 190,837 193,204

SDA-A/C Cold Storage Haripur -1 Overdue Overdue 12% 955 955
SDA-A/C Cold Storage Haripur -2 Overdue Overdue 12.5% 1,170 1,170
SDA-A/C Cold Storage Mardan -1 Regular Regular 12% 204 1,278
SDA-A/C Cold Storage Mardan -2 Regular Regular 12.5% 108 878
Shahdin Limited Overdue Overdue 14% 163 163
Shahyar Textile Mills Limited Overdue Overdue 14% 280 280
Spinzer Towel Industries Limited Oustanding Oustanding 12.5% 200 200
Spinzer Towel Industries Limited Oustanding Oustanding 14% 175 175
Sun Publications Limited Overdue Overdue 13.5% 178 178
Zulsham Engineering Works Limited Overdue Overdue 14% 236 236
194,956 199,168
1.5.3 Participation Term Certificate

Rupees
Rupees in ‘000
Investee
Ali Paper Industries Limited 13 17% 261,000 3,393 3,393
Alipure Jute Mills Limited 53 17% 172,113 7,081 7,081
American Marbals Limited 12 17% 104,167 1,250 1,250
Azmat Oil Industries Limited 1 17% 226,000 226 226
Annis Garments Limited 12 17% 32,917 395 395
Bhawalpur Board Mills Limited 14 17% 137,000 1,918 1,918
Balochistan Clay Products 17 17% 227,176 2,504 2,504
Bela Chemicals limited 1 17% 10,500,000 10,500 10,500
Bela Ghee Mills Limited 14 17% 191,214 1,066 1,066
Calcium Limited 1 17% 300,000 300 300
Cotex Industries Limited 14 17% 16,357 229 229
Crystal Chemicals Limited 15 17% 259,800 3,897 3,897
Dadabhoy Cement Limited 1 17% 11,601,000 10,863 11,601
Delta Tyre & Rubber Co. 7 17% 268,714 1,881 1,881
Frontier Ceramics Limited 10 17% 226,200 2,262 2,262
Gem Industries Limited 12 17% 126,417 1,518 1,517
Gypsum Corporation Limited 32 17% 32,594 1,043 1,043
Ittehad Industries Limited 1 17% 600,000 451 451
Jubilee Paper Board Mills 16 17% 431,938 6,761 6,761
Kamal Enterprises Limited 17 17% 64,294 1,093 1,093
Khalil Jute Mills Limited 16 17% 138,875 0 577
Khattak Edible Oil Limited 15 17% 82,467 1,237 1,237
Leatherite Limited 14 17% 69,643 727 727
Mass Dairies Limited 11 17% 229,364 2,523 2,523
Meditex International Limited 15 17% 87,800 508 508
Morgah Valley Limited 16 17% 29,250 468 468
National Fructose Limited 11 17% 550,818 6,060 6,060
Pak Belt Industries Limited 13 17% 94,692 757 757
Pangrio Sugar Mills Limited 29 17% 442,586 11,551 12,835
Punjab Building Products 12 17% 121,500 1,458 1,458
Punjab Cables Mills Limited 12 17% 388,667 3,833 3,833
Rainbow Packages Limited 23 17% 122,174 2,223 2,223
Balance Carried forward 89,976 92,571
Participation Term Certificate

Rupees
Rupees in ‘000
Investee
Balance brought forward 11 17% 89,976 92,571
Sampak Paper Board Mills 35 17% 14,909 165 165
Sarela Cement Limited 15 17% 406,629 14,232 14,232
Sethi Industries Limited 11 17% 240,667 3,260 3,522
Shafi Woolen Industries Limited 17 17% 89,455 490 489
Sindh Glass Industries Limited 15 17% 598,765 9,457 9,457
Star Silica Industries Limited 13 17% 137,467 1,803 1,803
Suhail Jute Mills Limited 15 17% 80,769 673 673
United Wood (Veener) Limited 13 17% 51,000 727 727
Waziristan Oil Industries Limited 11 17% 88,385 1,094 1,094
Zafar Oil Industries Limited 65,455 720 720
122,597 125,458
1.5.4 Government of Pakistan-Guaranteed bonds

Rupees in ‘000
WAPDA Bonds (9th issue) Bi-annual Bi-annual 11.00% - 720,003

WAPDA Bonds (10th issue) Bi-Annual Bi-annual 9.25% 100,000 100,000
Rice Export Corporation of Pakistan - Bonds Annual Bi-annual Average of last six 575,420 918,861
Ghee Corporation of Pakistan - Bonds Annual Bi-annual Average of last six 380,000 570,000
Trading Corporation of Pakistan - Bonds Annual Bi-annual Average of last six 309,153 463,775
Saindak Metals Limited - Bonds Annual Bi-annual 15% 254,485 508,969
Saindak Metals Limited - Bonds Annual Bi-annual Average of last six - 725,972
months KIBOR rates
Shahnawaz Bhutto Sugar Mills Lumpsum Lumpsum 6% 16,762 15,813
Public Sector Enterprizes Lumpsum Lumpsum 11% 12,167 23,272
1,647,987 4,046,665
11,895,476 12,348,488
1.5.5 OTHER GOVERNMENT BOND INVESTMENT

Rupees in ‘000
CIRC Bond Regular Regular Six months T Bill 11,242 11,242

auction rate on
the day precceding
the date of
payment of return
8.8142%
11,242 11,242
STATEMENT SHOWING WRITTEN-OFF LOANS OR ANY OTHER
FINANCIAL RELIEF OF FIVE HUNDRED THOUSAND RUPEES OR Annexure - II as referred
ABOVE PROVIDED DURING THE PERIOD 01.01.2006 TO 31.12.2006 to in Note 10.6 to the Financial Statements
(Rupees in Million)
No. the borrower Individuals/Partners/ Name Principle Interest/ Others Total written off. Mark-up relief/waiver provided (9+10+11)
1 2 3 4 5 6 7 8 9 10 Waier Reversal 12
1 Yasrab Cotton Syed Abdul Aziz Shah Abdul Ghafoor Shah 1.950 0.350 0.000 2.300 0.000 2.606 1.271 0.000 3.877
Factory * 31202-3635490-9
Jhangiwali Road, M. Tahir Aziz Shah Abdul Aziz
Bahawalpur 31202-3625895-9
Irfan Aziz Shah Abdul Aziz
31202-0250777-9
Tahira Aziz, Mrs. W/o Wasim A. Qureshi
31202-3028767-0
Kanwal Aziz, M/s W/o Syed Amjad Bashir
31202-0939512-4
Manzoor Ahmed
31202-0258446-1
Ayyaz Mehmood S. M. Manzoor Ahmed
31202-3968731-5
2 Popular Textile M. Hussain Virik . Noor Muhammad 1.252 0.851 0.000 2.103 0.413 0.000 0.417 0.434 1.264
Industries (Pvt) Ltd, * 42101-6489751-7.
Chak No.211/RB, Suleman Ahmad Virik M. Hussain Virik
Humayun-Abad 42101-0521832-3.
Jaranwala Road Fsd. Imran Ahmad Virik M. Hussain Virik
261-Panaroma 42101-4263704-7.
Center, Fatima Jinnah
Road, Karachi.
3 Bhatti Brotheran Abdul Sattar Shahrah Bhatti 1.752 2.721 0.177 4.650 0.289 0.182 2.222 0.494 3.187
Cotton Ginning 33106-4224145-9
Pressing & Oil Muhammad Yar Shahrah Bhatti
Factory*
514/GB Teh: Mst. Zohra W/o Shahrah Bhatti
Tandianwala
Distt: Faisalabad
4 Kamal-ud-Din Kamal-ud-Din Muhammad Din 0.809 0.000 0.000 0.809 0.421 0.000 1.252 0.000 1.673
H.No.1020, St. No.67, 101-85-372838
G-9/4, Islamabad
5 Muhammad Safeer M. Safeer Khan Fazal Din 0.372 0.235 0.000 0.607 0.372 0.067 0.168 0.000 0.607
Khan 82203-0482867-3
6 F.F CANS (PVT)LTD.* Fazal ur Rehman 19.024 28.102 0.690 47.816 16.781 2.662 22.557 0.000 42.000
42201-3946610-7
7 DAWN ENGG.* Mirza Pervaiz Baig Mirza Nawab Baig 3.280 2.750 0.063 6.093 1.925 0.00 0.063 0.000 1.988
42000-0380827-5
8 Lal Din Rishi & Sons Tariq Masood Rishi Lal Din Rishi 1.593 1.427 0.000 3.020 1.210 0.000 0.000 3.485 4.695
Railway Road, Gujrat Mrs.Qamar Tariq W/o Tariq Masood
Tahir Masood Rishi Lal Din Rishi
Mrs.Robina Tahir W/o Tahir Masood
Tahawar Masood Rishi Lal Din Rishi
Mrs.Yasmin Tahawar W/o Tahawar Masood
Talat Masood Rishi Lal Din Rishi
Mst.Nadia Talat Lal Din Rishi
9 National Engineering M. Aslam Bhatti 0.376 0.919 0.000 1.295 0.000 0.000 0.000 3.812 3.812
Co.* M. Akram Bhatti
M. Anwar Bhatti
Farhat D/o Muhammad Anwar
10 Fateh Sports Ltd*. Rauf Alam Janah Alam 0.090 0.000 0.028 0.118 0.000 0.000 0.000 1.807 1.807
41304-2303231-9
Aftab Alam Janah Alam
41304-9857401-9
41304-2303234-3
Faraz Alam Rauf Alam
41304-8084349-7
Jamila Alam Janah Alam
41304-4730956-6
Mohammad Mohsin Roshan Ali
41304-2303244-7
Muhammad Naveed Roshan Ali
41304-2303981-7
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
11 Fateh Finisher Ltd.* Rauf Alam Janah Alam 0.296 0.000 0.034 0.330 0.000 0.000 0.000 1.828 1.828
41304-2303231-9
41304-2303234-3
Roshan Ali Abbas Bhai
41304-23036243-1
12 Shahan Oil Saeed Khan Kamal Khan 3.200 0.503 0.104 3.807 2.109 0.643 0.000 9.396 12.148
44203-487846-1
44203-1272236-7
484-44-018908
484-85-031582
13 Saeed Khan* Saeed Khan Kamal Khan 7.181 0.000 0.199 7.380 3.690 1.578 0.000 18.938 24.206
44203-487846-1
44203-1272236-7
484-44-018908
484-85-031582
14 Qazi Enterprises Zardar Malik Mir Abdullah 0.200 0.044 0.002 0.246 0.194 0.002 0.048 0.558 0.802
B-67 Block-13
Fb Area Karachi
15 Sind Textiles* Syed Ali Azhar Naqvi S. Sharif Hussain Naqvi 9.435 1.547 0.360 11.342 6.745 0.360 3.877 31.602 42.584
C-41 Block-6 PECHS 101-46-323623
Dr. M. Hassan Road Mrs.Hameeda A Naqvi W/o Syed Ali Azhar Naqvi
Karachi 518-46-332608
Syed Ali Athar Naqvi S. Sharif Hussain Naqvi
514-86-136964
Syed Ali Akber Naqvi S. Sharif Hussain Naqvi
501-35-342742
Dr. M.Hassan Rd. Khi.
16 M. Azam Khan M. Azam Khan M. Akram Khan 0.496 0.531 0.011 1.038 0.496 0.011 0.052 0.479 1.038
B-29 Mebar Mabzil 42301-2352731-9
Bl-1 Scheme-5 Clifton
Karachi
17 Muhammad Sadiq Muhammad Sadiq Noor Muhammad 0.300 0.435 0.000 0.735 0.300 0.000 0.000 0.435 0.735
F#.B2 Nd Fl LSC 519-89-186252
(St-5 Row No 5 Bl-6
Gulshan Iqbal Kcy
18 Raees Ahmed Raees Ahmed Zaheeruddin 0.267 0.528 0.023 0.818 0.267 0.005 0.193 0.353 0.818
H.No.D-85, D17, 42301-1053091-1
Mehmoodabad,
No.5, Karachi
19 HPL Pharma (Pvt) M. Ziaul Hassan M. Zafarul Hassan 6.428 1.515 0.094 8.037 6.503 0.094 1.421 4.566 12.584
Ltd.*S 42301-6965562-3 Farooqui
20/2, Sec. 6/A, North M. Ehsan Farooqui
Karachi Industrial 91594-976473-3
Area, Karachi M. Sohail Hassan
20 SAK Garments* A. H. Kazim Habib Ali Khan 21.171 7.424 6.346 34.941 29.124 10.210 11.590 9.831 60.755
Plot #DP.6A, Sec.12-D, 42101-7568292-3
North Karachi Industrial
Area, Karachi
21 Classic Garments* Nazimuddin Baboo Khan 1.825 1.955 0.156 3.936 1.489 0.156 4.555 0.000 6.200
St.#8, Shah Baig 503-056-008468
Gabol Town, Block-22,
F.B. Industrial Area,
Karachi
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
22 Adamjee Garments* Abdul Ghaffar Adamjee Akbar Adamjee 74.636 30.666 0.000 105.302 61.645 24.921 5.745 146.721 239.032
House, I.I. Chundrigar Akbar Adamjee Abdul Ghaffar Adamjee
Road, Karachi 514-85-014028
Zakia Adamjee Abdul Ghaffar Adamjee
42301-3005068-7
Adamjee Int’l* Aziz Fazal Fazal Abdullah

Road, Karachi
Golden Velly
Trading Co.*
9th Floor, Adamjee
Road, Karachi
23 M.M. Traders* Syed Saeed Raza Zaidi Syed Saghir Raza Zaidi 2.563 0.964 0.000 3.752 1.988 9.204 0.000 0.000 11.192
B-266, Block-10, 42201-3590115-3
Gul-e-Iqbal, Karachi Syeda Saeeda Bano W/o S.M.Hassan Haider
42201-8790937-2
Sajda Bano W/o Syed Mehtab Raza
42201-5280141-6
Syed Tahir Raza Zaidi Syed Saghir Raza Zaidi
42201-3593001-3
S.M. Raza Zaidi Syed Saghir Raza Zaidi
42201-0782612-1
Ali Raza Zaidi Syed Saghir Raza Zaidi
42201-3599115-2
24 Dress Leathers* Rahat Ali, Mrs. W/o Rahat Ali Chaudhry 6.101 1.059 0.960 8.120 3.214 21.321 0.000 0.960 25.495
D-105, Zubaida 42201-5579946-2
Garden, Shah Maqsood Ahmed
Faisal Colony, Karachi Sardar Mohammad
Zareena Sarfraz, Mrs.
Razia Ahmed, Mrs.
M. Ibrahim
42201-7502820-5
25 Tropex Enterprises Ehsan Ahmed Khan Ghulam Sarwar Khan 3.500 0.678 0.000 4.178 2.429 0.000 2.050 0.000 4.479
(Pvt) Ltd. 37405-4817695-9
1012 Business Centre,
10th Floor, Mumtaz
Hassan Road, Karachi
26 Ghazi Constructions* Tanveer Hussain Hadi Hassan 0.343 0.303 0.054 0.700 0.000 1.481 0.000 0.000 1.481
C-105, Off: Kh-e- Frah Kazmi, Mst. Iqbal Kazmi
Etehad, 11th Jami Moeen Akhtar
Comm. Street,
Near Askari Comm.
Bank, Ph-VII, DHA,
Karachi .
27 Javed Iqbal Javed Iqbal Ch. Ghulam Rasool 0.227 0.944 0.000 1.171 0.227 0.000 0.944 0.000 1.171
1730/767, Mustufa 503-88-235956
Colony, Baldia Town,
Karachi
28 Bahr-Ul-Hidayat Bahr-Ul-Hidayat Abdul Bari 0.000 0.939 0.000 0.939 0.000 0.000 0.939 0.000 0.939
42201-4311881-9
29 Abdul Qudoos Abdul Qudoos Ghulam Ahmed Khan 0.389 3.024 0.417 3.830 0.000 0.417 3.024 0.000 3.441
123-25-221725
30 Al-Ahmed Kafil Ahmed Abdul Rehmen 0.000 0.939 0.000 0.939 0.000 0.000 0.504 0.435 0.939
Enterprises
31 Al-Misri Coach Ghulam Hussain Yar Hussain 0.000 2.007 0.000 2.007 0.000 0.000 2.007 0.000 2.007
42501-6313499-3
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
32 Shamsi Packages Rashid Saleem Shamsi M. Saleemuddin Shamsi 0.000 0.558 0.000 0.558 0.000 0.000 0.558 0.000 0.558
42101-5630588-3
33 Qasim Khalil Qasim Khalil Khalil Ahmed 0.283 0.478 0.031 0.792 0.283 0.031 0.478 0.000 0.792
515-91-015107
34 Misbahul Islam Misbahul Islam

515-89-049456 Abdul Majeed 0.208 0.355 0.043 0.606 0.208 0.043 0.355 0.000 0.606
35 Ali Computer Services* Syed Tahir Khurshid Syed Sarwar Hussain 0.067 0.395 0.120 0.582 0.000 0.394 0.120 0.514 1.028
25-Bahawalpur Road, 35202-2863903-3
Lahore
Muhammad Ashraf Khan 6.365 11.624 0.027 18.016 0.281 0.000 12.169 29.200 41.650
36 Ashraf Steel Pvt.Ltd.* M.Akram Khan
16-K.M.SKP. Road 35202-1740949-7 2
Lahore. M.Azam Khan Muhammad Ashraf Khan
35202-5731213-5 3
M.Akmal Khan Muhammad Ashraf Khan
35202-7542358-3
37 Maj. Muhammad Maj.Muhammad Rafique Sher Ahmed 0.129 0.374 0.080 0.583 0.129 0.047 0.407 0.000 0.583
Rafique 760-46-017817
41-SD House Badian
Road Lahore
38 M.Tehseen Butt M.Tehseen Butt Muhammad Yasin 0.614 0.655 0.041 1.310 0.252 0.041 0.614 0.000 0.907
H.No.12,ST No.10 35202-0372355-3
Nisbat Road Lahore.
39 Kashmir Chemical M. Aslam Qureshi Jalal Din 0.500 0.099 0.069 0.668 0.000 0.000 0.000 0.800 0.800
401-Circular Road Lhr. Shazia Aslam M. Aslam Qureshi
35202-4901684-9
Fazalur Rehman 1.268 7.541 0.297 9.106 1.162 0.000 7.838 0.000 9.000
40 Muslim Ghee Mills Ltd.* Muhammad Imran
Qadirabad, Distt. 35201-6517426-5
Sahiwal. Kh.Rahat Latif Kh..Abdul Latif
35201-8248179-1
Faiz Ur Rehman Fazalur Rehman Malik
35201-1520355-5
41 Rehmat Transport Allah Wasaia Hashmi Mian Sher M. Hashmi. 0.000 1.115 0.000 1.115 0.000 1.115 0.000 1.115 2.230
Services 309-38-306715
127-A DHA Amir Shahbaz Hashmi Allah Wasaia Hashmi
Lahore 309-85-306718
Mst.Tahira Fahima Khuad Bux Farooqi
271-48-121009
42 Unitec Paper Products Nusrat Hussain Siddique Iqbal Hussain 5.701 1.975 0.247 7.923 3.914 0.960 1.262 3.933 10.069
Pvt.Ltd.* 35202-2320155-1
127-A, DHA
Lahore.
43 Rehman Spezial Asad Shafiq Sh.Muhammad Shafique 1.921 2.338 0.043 4.302 1.422 0.008 2.381 3.756 7.567
Paper Products* 35201-5972183-1
Chughtai Manzil 72
Beadon Road Lahore.
44 Sana Electrodes (Pvt.) Syed Burhan Ahmed Syed Hafiz Ahmad 9.620 2.096 1.314 13.030 9.620 17.748 0.987 28.355 56.710
Ltd. 285-88-371856
R.N.9,2nd Floor Davis Muhammad Aslam Abdul Wahab
Hytes 38-Davis Road 518-49-086743
Lahore. Muhammad Akhtar Hussain Mian Qazi
502-50-640016
45 A.S. Plastic Industries Kh. Muhammad Saleem Kh. Anwar Hussain 0.325 0.109 0.017
0.451 0.325 0.000 0.000 0.521 0.846
Muslim Street No.1, 35202-7968615-9
Misri Shah, Lahore
46 M. Iftikhar Bhatty Shahid Mehmod Anayatullah Akhtar Bhatty 1.305 0.305 0.051 1.661 0.000 0.051 1.559 .0313 1.610
H. No.82, College 273-91-119801
Block Allama Iqbal
Town,Lahore
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
47 Shahid Mehmood Shahid Mehmood Muhammad Tufail 0.271 0.430 0.044 0.745 0.271 0.000 0.464 0.313 1.048
H.No.114, St. # 48, 273-91-119801
Lower Mall Behind
M.A.O. College, LHR
48 Osprey International Shahid Zafar Abbasi M. Yousaf Abasi 5.964 1.827 0 7.791 0.922 0.303 0.000 4.835 6.060
(Pvt) Ltd.* 35201-9078198-5
Mauza Gujju Matta, Mrs. Yasmin Ch. Shahid Zafar Abbasi
20 k.m. Off: Ferozepur 35201-8282134-8
Road, Lahore
49 Shalimar Engineering Mirza M. Ahmed Baig Mirza M. Usman Baig 0.450 0.346 0.047 0.843 0.000 0.000 0.000 2.284 2.284
Works 269-32-299092
406- E.G.T. Road, Mirza Shafqat Mehmood Mirza Mahmood A. Baig
Lahore 264-57-299894
50 Awais Bilal Industries Sh. Muhamamd Younas Sheikh Chiragh Din 2.888 1.030 0.355 4.273 1.761 0.000 0.000 2.212 3.973
17 k.m. Lahore 273-92-273361
Sheikhupura Road,
Lahore
51 Ali Brothers Cotton Faqir Muhammad Noor Muhammad 1.753 0.518 0.215 2.486 0.000 0.000 1.072 3.001 4.073
Factory 36601-6090247-5
Multan Road Burewala Muhammad Arshad Noor Muhammad
324-58-626461
Muhammad Akhtar Noor Muhammad
324-62-214588
Muhammad Anwar Ali Muhammad
253-45-0705509
52 New Trend Fabrics* Akhtar Hussain Ghulam Mustafa 17.386 1.826 1.182 20.394 4.494 7.531 1.755 5.233 19.013
Chak # 14/15-LVehari 36104-9906444-1
Road Mian Channu Muhammad Saleem Muhammad Sadiq
35302-1856965-1
53 Ch. Mukhtar & Sons Ch.Khushi Muhammad Aziz Ud Din 1.148 0.480 0.288 1.916 0.000 0.222 1.768 0.000 1.990
Cotton Ginners 36104-3806531-7
Chak # 121/15-L , Arfan Aziz Ch. Khushi Muhammad
Mian Channu 36104-3900486-7
Mst.Sajida Aziz D/o Khushi Muhammad
35201-9606141-6
Mst Jamila Begum W/o Khushi Muhammad
329-46-54106562
54 Rahim Textile Mills Abdul Rahim Mushtaq Ahmad 5.643 0.635 2.698 8.976 4.063 0.719 2.607 0.389 7.778
Dehli Gate Multan
55 M.H.Textile Inds.* Muhammad Anwar Ch.Muhammad Ali 0.955 0.629 0.193 1.777 0.322 0.670 0.485 1.057 2.534
Mouza Faizwah 36603-7495795-9
15 Km, Hasilpur Mst.Shahnaz Anwar W/o Muhammad Anwar
Rd. Vehari. 36603-9580703-6
56 Taj Solvex (Pvt)* Ltd. M.Islam Khokhar Rehmatullah Khokhar 25.491 7.987 1.216 34.694 21.979 4.395 4.808 28.212 59.394
Gopalpur, Bahawalpur 36302-7016300-5
Road, Multan M.Iqbal Khokhar Rehmatullah Khokhar
322-85-034974
M.Arif Khokhr Rehmatullah Khokar
36302-5865738-3
57 National Wood Tariq Iqbal Khalid Iqbal Ahmed Qureshi 7.414 11.664 4.452 23.530 2.657 0.000 11.439 4.452 18.548
Industries * 36302-0997112-5
Mouza Jungle Faizpur Zubair Iqbal Ahmed Qureshi
Bahawalpur Rd. Multan 36302-8172881-522
58 Nasir Paper Mills Muhammad Ahsan Khan Fazal Ahmad Khan 3.896 1.434 0.335 5.665 2.388 1.197 1.056 4.200 8.841
(Pvt) Ltd. * 35201-3824545-5
Chak-9/14-L, Aisha Ahsan Khan W/o M. Ahsan Khan
Chichawatni 35201-5741350-0
59 Hasina Bibi, Mst. Hasina Bibi, Mst. Saeed Ahmed Malik 0.656 0.689 0.000 1.345 0.656 0.000 0.689 0.000 1.345
St.#12, Hadieria Road, 322-59-530877
Gulgasht, Multan
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
60 M. Saleem Khan M. Saleem Khan Haji Inayatullah Khan 1.253 1.662 0.168 3.083 1.084 0.168 1.662 0.000 2.914
Khakwani House, 322-92-909929
Katchery Road, Multan
61 Muzamil Traders Muhammad Hussain Nabi Bux 4.528 0.361 0.332 5.221 3.836 0.266 0.550 5.199 9.851
(Pvt) Ltd. 325-40-417949
Karampur Road, Mailsi Muhammad Nasir Khurshid Ali
36602-1000704-3
62 Al-Tawakal Industries Haji Muhammad Yousuf Mian Nanak 0.624 0.521 0.241 1.386 0.000 0.158 0.521 0.000 0.679
Anser Colony, Multan 322-16-466230
Khushi Muhammad Haji Muhammad Yousuf
322-45-70052
Muhammad Suleman Haji Muhammad Yousuf
322-55-466232
Muhammad Saleem Haji Muhammad Yousuf
322-58-466235
63 Shakoor Industries Rao Bu Ali Qalandar Rao M. Abdul Shakoor 7.422 3.205 0.647 11.274 6.079 2.807 1.267 0.000 10.153
(Pvt) Ltd. 36602-9857508-7
10-KM Karampur Road, Rao M. Abdul Shakoor Haji Abdul Ghafoor
Mailsi, Distt: Vehari 36602-0994557-7
Rao Walliyullah Rao M. Abdul Shakoor
36602-4729292-5
64 Saeed Ahmad Malik Saeed Ahmad Malik Malik Hussain Bux 0.642 0.671 0.440 1.753 0.202 0.440 0.671 0.000 1.313
H.No.524/1, Haidria 36302-8833058-5
Road, Gali No.2,
New Gulgasht Colony,
Multan
65 Abbas Enterprises Gulrez Ahmad Awan Mukhtar Ahmad Awan 3.793 1.830 0.177 5.800 0.000 0.000 7.382 0.000 7.382
(Pvt) Ltd. 36302-9734477-3
Mouza Kothey Wala Abdul Haq Mohkam Din
Budhla Sant Road, 323-14-023259
Multan Rehana Fatima Mukhtar Ahmad Awan
36302-5716250-8
Saima Awan Zubair Ahmad
36302-0268235-8
66 Capital Packages Haji Abdul Latif Sh. Shamsuddin 6.258 3.403 0.378 10.039 5.348 0.773 2.768 8.949 17.838
Industries * 36302-0354181-7
Mouza Sujjanpur Zafar Iqbal Abdul Aziz
Khanewal Road, 322-49-423136
Multan M. Tahir Nadeem Muhammad Yaqoob
247-55-151912
67 Mangol Industries S. Rizwan-ul-Azeem Mohammad Ahmed 7.720 4.294 0.708 12.722 3.938 2.768 2.114 0.000 8.820
(Pvt) Ltd. * 36302-1932546-9
355-B Gulgasht, Iffat Jabeen W/o S. Rizwan-ul-Azam
Multan Saima Naz
S. Raza-ul-Kabir
Tahira Ahmad
68 Naeem Weaving Naeem Saif Saif Ali 1.358 0.145 0.067 1.570 1.156 0.319 0.313 2.444 4.232
Industries (Pvt) Ltd. * Mrs. Naseem Akhtar Saif Ali
Seetal Mari, Budhla Shoukat Ali Amir Ahmad
Road, Multan Arshad Ali Amir Ahmad
69 Shaheen Cotton Muhammad Yaqoob Khan Muhammad Khan 1.105 0.872 0.373 2.350 0.000 0.000 0.000 0.000 0.000
Indusries * 325-48-055330
Mauza Ojla, Multan Safdar Abbas Khan M. Yaqoob Khan
Road Mailsi Distt. 325-64-055332
Vehari Zaighum Abbas Khan M. Yaqoob Khan
325-65-055333
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
70 Madina Jute Mills Ltd. Haji Miraj Din Wahid Bux 8.233 13.625 0.219 22.077 0.000 0.000 0.000 0.000 0.000
14-Km Muzaffargarh 36302-5851964-9
M.M. Road, Khanpur Haji M. Siddique Wahid Bux
Baghasher 36302-0481976-9
Haji Wahid Bukhsh Haji Meraj Din
Muhammad Farooq
36302-0361963-5 Haji Meraj Din
Muhammad Anwar
Muhammad Hussain Hashimuddin Qureshi
36302-0482010-7
Naseeruddin Qureshi
36302-9810473-7
Muhammad Iqbal
71 Quality Weaving Sh. Abdul Hakeem Sh. Abdul Rehman 28.415 21.723 0.130 50.268 18.511 0.000 50.791 0.000 69.302
Mills Ltd. 36302-3354549-1
36-A, Industrial Estate, Sh. Abdul Hadeem Sh. Abdul Rehman
Multan 36302-0784439-1
Hakim-un-Nisa Sh. Abdul Rehman
36302-8877734-4
Bilquse Abdul Hakeem Sh. Abdul Hakeem
36302-6648015-2
Nasir Hameed Sh. Abdul Hameed
36302-7013384-0
Tahira Fahim Fahimuddin
54400-2443240-0
Najma Shafqat Shafqat Hussain
54400-3769995-2
72 Janjua Textile Mills Mian Maqbool Ahmed Mian Ghulam Nabi 4.109 0.145 0.288 4.542 3.149 0.000 0.000 0.000 3.149
(Pvt) Ltd. Mian Muhammad Saeed Mian Ghulam Nabi
Mouza 36302-8025350-5
Bakhsheeshgarh, Mian Iqbal Waheed Mian Ghulam Nabi
Mattital Road, Multan Muhammad Fayyaz Faiz Buksh
73 Indo Saigon Chullari Niranjan N.A. 2.352 0.000 0.000 2.352 2.365 0.000 0.000 0.000 2.365
Enterprises Kishanchand
Gold Coast Phase-I,
Tower2, 20th Floor,
Suite-B, 1 Castle Peak
Road, Tuen Mun New
Territories, Hong Kong
74 Nick Fung Textile Co. Nick Tsui Tak Shing 85.715 0.000 0.000 85.715 85.713 0.000 0.000 0.000 85.713
E-2/F, Far East
Mansion, 5-6, Middle
Road,TST Kowloon,
Hong Kong
75 Jani's (Pvt) Ltd. Muhammad Yousuf Rahim Buksh 0.000 1.099 0.043 1.142 0.000 0.000 0.000 0.742 0.742
Jani Plaza, Khyber 136-89-036915
Super Market, Asif Yousuf Mohd. Yousuf
Peshawar Cantt. 136-89-113200
Anwar Sultana W/o Mohd. Yousuf
136-44-036916
Shahzia Asif D/o Amir Bashir
136-89-123259
76 Sughra Begum Sughra Begum Ghulam Mustafa 0.000 0.558 0.000 0.558 0.000 0.000 0.000 0.558 0.558
135-24-12330
77 Abdul Qadir Abdul Qadir Juma Khan 0.739 1.371 0.000 2.110 0.000 0.000 1.371 0.486 1.857
H.No.5/14, Block #5, 54400-8840521-3
Satellite Town, Quetta
78 Abdul Kabbir Aslam Abdul Kabbir Aslam Kashmir Khan 0.000 0.630 0.000 0.630 0.000 0.000 0.630 0.000 0.630
Goods, Transport Co. 601-41-071422
Sirki Road, Quetta
79 Abdul Ali Abdul Ali Shair Muhammad 0.000 0.570 0.082 0.652 0.000 0.000 0.570 0.082 0.652
Killi Qasim Pishin 602-46-328869
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
80 Nasrullah Nasrullah Niaz Muhammad 0.000 0.596 0.128 0.724 0.000 0.000 0.596 0.128 0.724
H.No.2/31/22, Quetta 601-91-201360
81 Afzal Gichki Afzal Gichki Abdullah Khan 0.000 0.445 0.066 0.511 0.000 0.000 0.445 0.066 0.511
Tehsil Tumb, Distt: 632-89-005850
Turbat
82 Electronic Waqar Azim Muhammad Azim 20.25 47.474 0.979 68.703 14.260 47.474 0.000 0.979 62.713
Information & 101-87-396243
Engergy System * Sajjad Azim Muhammad Azim
Industrial Triangle 514-30-007756
Kahuta Road, Nusrat Azim Muhammad Azim
Islamabad 514-28-123692
Shaukat Azim Muhammad Azim
514-32-123691
Sardar Imtiaz Sardar Nawazish Ali
Ahmed Khan
Begum Sureya Waqar W/O Waqar Azim
Saulat Azim Nusrat Azim
83 Sheikh Jamil & Co. Sheikh Jamil Ahmed Sh Muhammad Rafique 2.125 0.573 0.152 2.850 0.969 0.000 0.000 7.921 8.890
Cotton Ginners, (Deceased)
Wool Merchant NIC # 330-51-132297
Grain Market Sahiwal
84 Nisar & Co. Cotton Abdul Ghani Ali Ahmed 2.339 1.551 0.016 3.906 0.000 0.000 0.000 1.141 1.141
Ginners Abdul Sattar Ali Ahmed
Grain Market Branch, Abdul Jabbar Ali Ahmed
Chichawatni Nisar Ahmed Ali Ahmed
Habib-ur-Rehman Abdul Sattar
Dildar Hussain Akbar Ali
Mst Iqbal Bibi D/o Ali Muhammad
Mst Farzana Shaheen Abdul Ghani
Mst Rasoolan Bibi Abdul Jabbar
Mst Amna Bibi W/o Muhammad Jameel
85 Rizwan Brothers Mian Naved A. Bhatti 4.278 6.031 0.109 10.418 2.778 3.467 0.000 2.673 8.918
(Pvt) Ltd. * 31101-8017979-9
Chest Branch, Mian Muhammad Yasin Mian Badar Din
Haroonabad 31101-7973807-7
Rizwan-ul-Azim Mian Muhammad Yasin
31104-4408943-9
Mrs. Saiqa Hamayoun Hamayoun Bashir
31202-3804215-8
86 Mian Ghulam Mian Ghulam Hussain Rakhan Din 0.990 0.277 0.094 1.361 0.000 0.295 0.000 2.314 2.609
Hussain & Co. Neik Muhammad
Grain Market, Sahiwal 36502-7511338-7
(Sahiwal City) Muhammad Jamil Mian Ghulam Hussain
Mst. Razia Begum Sh. Muhammad Chohan
36502-2022307-4 Sh. Muhammad Chohan
Mst. Rabia Begum Muhammad Saleem
36502-1304949-0
87 Progressive Engineer Manzoor Javed Muhammad Saleem 0.330 0.461 0.017 0.808 0.000 0.230 0.000 0.342 0.572
Bahawalnagar 354-49-164843
88 Wahid Corporation Haji Abdul Wahid Ch. Pir Muhammad 1.920 0.000 0.550 2.470 0.000 0.000 0.000 0.518 0.518
Railway Road, 36402-0816654-9
Pakpattan
89 Akbar Enterprises Aleem Ahmad Khan Tauqeer Ahmad Khan 31.401 5.226 0.000 36.627 26.182 3.592 1.905 0.000 31.679
Ltd. * 35202-2514455-3
128/4, Industrial Mrs.Samuna Tauqeer Tauqeer Ahmad Khan
EstaeTownship Lahore 35202-5727103-6
Mrs.Samina Tanveer Tauqeer Ahmad Khan
35202-2454790-6
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
90 Kamran Steel Anis Gul Gul Muhammad 21.928 48.152 0.000 70.080 0.000 0.000 20.667 0.000 20.667
Re-Rolling * 35202-5831094-5
7/83, Shahrah-e-Qaid- Masoor Gul Gul Muhammad
e-Azam, Lahore 35202-9677320-3
Nabila Masood Gul Masood Gul
35202-2333459-8
Razia Begum Gul Muhammad
35202-9125486-6
91 Sidra Rice Mills Syed Nazim Hussain Sh. Syed Shaukat Ali Shah 32.593 32.445 0.606 65.644 29.826 0.606 32.520 3.284 66.236
(Pvt) Ltd.* 35202-8726846-3
Syeda Tahawar Shahzadi S. Nazim Hussain Shah
3520-5626269-0
92 Ch. Electrods Ch. Muhammad Qasim Ch. Sirajuddin 33.872 2.427 0.000 36.299 17.872 0.000 2.427 16.727 37.026
(Pvt) Ltd. * 35202-2937694-1
29-Kilometer, Lahore Mrs.Salamat Qasim Ch. Muhammad Qasim
Sheikhupura Road 35202-4471323-2
35202-7154990-9
35202-4519175-1
Ahmad Faheem Qasim Ch. Muhamamad Qasim
35202-4932463-3
Nuzhar Faheem Ahmad Fahim Qasim
35202-9662840-6
93 Mumtaz Shahbaz Mirza Iftikhar Baig Mirza Mumtaz Baig 56.706 5.667 0.000 62.373 56.683 0.000 44.060 0.000 100.743
Textile Mills Ltd. * 35202-2379853-5
Mumtaz Centre, Mirza Mumtaz Baig Mirza Niaz Baig
15 Shahrah-e-Fatima 35202-4330287-5
Jinnah, Lahore Mirza Mukhtar Baig Mirza Mumtaz Baig
35202-2317316-1
94 Shaheen Wood Tahir Hussain, Tayab Hussain Qureshi 1.336 0.000 0.144 1.480 0.091 1.784 0.000 0.144 2.019
Works & Furniture 61101-4758309-1
Ind. Hooran, Miss
Azra, Miss
Sub Total NBP 645.611 360.882 30.277 1036.770 478.982 176.542 293.000 415.213 1363.737
95 Siraj Steels Limited * Ch. Muhammad Qasim Ch. Sirajuddin 335.625 195.575 108.136 639.336 180.506 0.000 1124.020 108.136 1412.662
Mouza Rakh Bawli 35202-2937694-1
Jamandar, G.T. Road, Mrs.Salamat Qasim Ch. Muhammad Qasim
Monooabad, Muredke 35202-4471323-2
35202-7154990-9
35202-4519175-1
96 Hasan Spinning Mrs.Nazish Umar Shah Syed Umar Shah 13.283 6.082 14.694 38.059 4.976 0.000 20.777 0.000 25.753
Mills Ltd. * 33100-8480315-2
5th floor, MCB Building, Mrs.Ayesha Rehman Asif-ur-Rehman
Circular Road, 42301-0938338-0
Faisalabad
97 Hill Park General Azizur Rehman Munshi Ahmed Khan 3.362 0.000 5.58 8.942 0.000 0.000 0.000 4.511 4.511
Hospital & Trauma 601-25-024225
Centre * Inamur Rehman Azizur Rehman
(Former New York 601-72-024231
Poly Clinic)
S.N.C.C. 3/4 Block-3,
shaheed-e-Millat Road,
Karachi
98 Haji Muhammad Mushtaq Ahmed Vohra Haji Muhammad Ismail 18.048 0.000 21.803 39.851 17.487 0.000 0.000 21.803 39.290
Ismail Mills Ltd. * 517-93-219564
408 Commerce Gulshad Begum W/o Mushtaq A. Vohra
Centre,Hasrat Mohani 517-92-109025
Road, Karachi Nasir Mushtaq Vohra Mushtaq Ahmed
517-92-219545
Misrah Nisar W/o Nasir Ahmed Vohra
270-66-042184
(Rupees in Million)
1 2 3 4 5 6 7 8 9 10 Waiver Reversal 12
99 Jet Era Textile Abdul Hameed Khan Haji Muhammad Khan 6.467 13.486 0.070 20.023 0.000 0.000 10.277 0.000 10.277
Mills Ltd. 35201-7693230-3
7-Larechs Housing Razia Hameed Abdul Hameed Khan
Society, Lahore 35201-6432074-0
Muhammad Arif Abdul Habib
42000-0441087-3
Sub-Total Ex-NDFC 376.785 215.143 150.283 742.211 202.969 0.000 1155.074 134.450 1492.493
100 Fateh Weaving M. Habib Abbas Bhai 16.893 0.701 2.028 19.622 0.139 20.247 2.028 0.000 22.414
Mills Ltd. * 41304-6497882-3
4th Floor, Sarwar M. Sharif Abbas Bhai
Shaheed Road, 41304-4220853-7
Karachi M. Ashfaq Abbas Bhai
42201-0771559-5
41303-7481833-7
41303-4804521-2
41304-4346680-4
41303-2929820-4
101 Fateh Apparel * M. Habib Abbas Bhai 4.583 0.434 0.000 5.017 2.317 6.441 0.117 0.000 8.875
4th Floor, Sarwar 41304-6497882-3
Karachi 41304-4220853-7
42201-0771559-5
41303-7481833-7
Sumera Waheed Abdul Waheed
41303-2929820-4
41303-4804521-2
41304-4346680-4
102 Nephew & Nephew* M. Habib Abbas Bhai 4.713 0.297 0.120 5.130 2.448 6.518 0.120 0.000 9.086
4th Floor, Sarwar 41304-6497882-3
Karachi 41304-4220853-7
42201-0771559-5
41303-7481833-7
41303-4804521-2
Rukhsana Sharif, Mrs. M Sharif
41304-4346680-4
41303-2929820-4
103 Admani * Corporation Ayaz Admani Sattar Ahmed 0.471 0.000 0.010 0.481 0.312 0.002 0.010 0.000 0.324
Bill Apartment Flat#14, 42301-0762274-1
Mc-Neil Road, Frear
Town,
P.O. Box No.15523,
Karachi
Sub Total EX-MBL 26.660 1.432 2.158 30.250 5.216 33.208 2.275 0.000 40.699
TOTAL 1049.056 577.457 182.718 1809.231 687.167 209.750 1450.349 549.663 2896.929
* Accounts settled under SBP Circular No. 29 dated 15-10-2002

Islamic Banking Business Annexure III
The bank is operating 1 Islamic banking branch at the end of current year as compared to nil Islamic banking
Branches at the end of Prior year.
2006 2005
ASSETS Rupees in ‘000
Cash and balances with treasury banks 4,724 -

Balances with and Due from Financial Institutions 99,000 -
Investments - -
Financing and Receivables - -
-Murahaba - -
-Ijara -
- -
-Musharaka
-Diminishing Musharaka - -
-Salam - -
-Other Islamic Modes - -
Other assets - -
103,724 -
LIABILITIES
Bills payable 800 -

Due to Financial Institutions - -
Deposits and other accounts -
- Current Accounts 2,911 -
- Saving Accounts - -
- Term Deposits - -
- Others - -
- Deposit from Financial Institutions -Remunerative - -
- Deposits from Financial Institutions-Non-Remunerative - -
Due to Head Office - -
Other liabilities 11 -
3,722 -
100,002 -
REPRESENTED BY
Islamic Banking Fund 100,000 -

Reserves - -
Unappropriated/unremitted profit 2 -
100,002 -
Surplus /(Deficit) on revaluation of assets - -
100,002 -
Remuneration to Shariah Advisor/Board - -
CHARITY FUND
Opening Balance - -
Additions during the period - -
Payments/Utilization during the period - -
Closing Balance - -
One Card
Does it all
* Subject to the availability of subsidy from Gop
ATM + Debit Card

Use it as an ATM in any of the ATM’s in Pakistan
Use it as Debit Card in any of the outlets with ORIX POS machine
Cash withdrawal upto Rs. 20,000 per day
Account Balance Enquiry
Mini Statement (Only at NBP ATM)
PIN Change facility (Only at NBP ATM)
0800-80080
your
Helpline
Call Center
Product Information
& Complaint Resolution Centre
For all NBP Products
Home Sales Call facility
Pattern of Shareholding (as of December 31, 2006)
NO. OF HAVING SHARES

SHAREHOLDERS FROM TO SHARES HELD PERCENTAGE
1423 1 100 78634 .0110
2017 101 500 645828 .0910
1594 501 1000 1342331 .1893
4081 1001 5000 9170526 1.2933
473 5001 10000 3541043 .4993
166 10001 15000 2089045 .2946
109 15001 20000 1975480 .2786
66 20001 25000 1533656 .2162
42 25001 30000 1177418 .1660
30 30001 35000 984699 .1388
18 35001 40000 681764 .0961
11 40001 45000 470864 .0664
20 45001 50000 987000 .1391
7 50001 55000 365641 .0515
19 55001 60000 1103608 .1556
6 60001 65000 373400 .0526
14 65001 70000 954816 .1346
7 70001 75000 515060 .0726
8 75001 80000 627800 .0885
7 80001 85000 576796 .0813
12 85001 90000 1053877 .1486
3 90001 95000 282000 .0397
12 95001 100000 1182858 .1668
4 100001 105000 410894 .0579
4 105001 110000 433000 .0610
4 110001 115000 447290 .0630
6 115001 120000 710100 .1001
6 120001 125000 737371 .1039
6 125001 130000 763688 .1077
4 130001 135000 534100 .0753
2 140001 145000 284100 .0400
2 145001 150000 292504 .0412
1 150001 155000 152700 .0215
3 155001 160000 473388 .0667
1 160001 165000 162000 .0228
4 165001 170000 674500 .0951
3 170001 175000 518000 .0730
2 175001 180000 351300 .0495
1 180001 185000 185000 .0260
1 185001 190000 190000 .0267
3 190001 195000 582500 .0821
6 195001 200000 1194592 .1684
1 205001 210000 208000 .0293
2 215001 220000 431896 .0609
1 220001 225000 221500 .0312
1 225001 230000 226444 .0319
2 230001 235000 462400 .0652
2 235001 240000 474000 .0668
2 240001 245000 486400 .0685
3 245001 250000 746100 .1052
1 250001 255000 250591 .0353
1 255001 260000 256000 .0361
2 260001 265000 525500 .0741
3 265001 270000 799700 .1127

1 275001 280000 277500 .0391

2 285001 290000 574600 .0810
1 290001 295000 290600 .0409
1 295001 300000 296700 .0418
1 310001 315000 312126 .0440
3 325001 330000 981580 .1384
2 330001 335000 664300 .0936
2 335001 340000 675196 .0952
2 345001 350000 696583 .0982
1 350001 355000 352500 .0497
1 365001 370000 370000 .0521
1 370001 375000 375000 .0528
1 375001 380000 377000 .0531
1 380001 385000 383100 .0540
1 385001 390000 386129 .0544
1 390001 395000 390660 .0550
1 395001 400000 400000 .0564
2 405001 410000 816700 .1151
1 415001 420000 415016 .0585
1 420001 425000 421188 .0593
2 435001 440000 875500 .1234
1 440001 445000 442500 .0624
2 445001 450000 894700 .1261
1 450001 455000 450280 .0635
3 495001 500000 1492220 .2104
1 500001 505000 500988 .0706
1 510001 515000 510500 .0719
1 530001 535000 533664 .0752
1 540001 545000 544300 .0767
1 555001 560000 560000 .0789
1 560001 565000 562300 .0793
1 565001 570000 565396 .0797
1 570001 575000 575000 .0810
2 590001 595000 1189000 .1676
2 605001 610000 1216400 .1715
1 615001 620000 615800 .0868
1 620001 625000 624600 .0880
1 650001 655000 654000 .0922
1 670001 675000 670900 .0946
1 675001 680000 675300 .0952
1 695001 700000 700000 .0987
1 715001 720000 718241 .1012
1 745001 750000 749847 .1057
2 760001 765000 1523236 .2148
1 770001 775000 775000 .1092
1 790001 795000 790122 .1114
1 800001 805000 801860 .1130
1 805001 810000 805600 .1136
1 820001 825000 822000 .1159
1 850001 855000 854900 .1205
2 865001 870000 1739216 .2452
1 895001 900000 900000 .1269
1 935001 940000 935900 .1319

1 955001 960000 959500 .1353

1 1040001 1045000 1045000 .1473
1 1090001 1095000 1092600 .1540
1 1105001 1110000 1106600 .1560
1 1145001 1150000 1146893 .1617
1 1210001 1215000 1210300 .1706
1 1225001 1230000 1229196 .1733
1 1315001 1320000 1315500 .1855
1 1435001 1440000 1436600 .2026
1 1620001 1625000 1621400 .2286
1 1815001 1820000 1815200 .2559
1 1825001 1830000 1825056 .2573
1 2075001 2080000 2079348 .2932
2 2535001 2540000 5076790 .7159
1 2835001 2840000 2839200 .4004
1 3530001 3535000 3532567 .4981
1 3805001 3810000 3807500 .5369
1 5680001 5685000 5683000 .8014
1 7620001 7625000 7623220 1.0750
1 10505001 10510000 10509000 1.4820
1 14255001 14260000 14259282 2.0109
1 23025001 23030000 23025164 3.2472
1 533205001 533210000 533206929 75.1979
10321 709071295 100.0000

Banking made
AASAN
Online Branch Banking
Online Branch Banking

Balance Enquiry
Statement of Account
Stop Payment
Cash Deposit to own and third party account
Cash Withdrawal through Cheque
Transfer of funds to own and third party account
Categories of Shareholders (as of December 31, 2006)
PARTICULARS SHAREHOLDERS SHAREHOLDING PERCENTAGE
GOVERNMENT OF PAKISTAN 2 2305792 .3251
THE PRESIDENT OF PAKISTAN 2 552187 .0778
STATE BANK OF PAKISTAN 1 533206929 75.1979
ASSOCIATED COMPANIES
- TAURUS SECURITIES LTD. 2 4600 .0006
EXECUTIVES OF THE BANK 1 25,000 .0035
NIT & ICP 3 3299513 .4653
BANKS, DFI & NBFI 69 15973203 2.2526
INSURANCE COMPANIES 21 20432768 2.8816
MODARABAS & MUTUAL FUNDS 68 18992154 2.6784
PUBLIC SECTOR COS. & CORP. 21 3544557 .4998
GENERAL PUBLIC (LOCAL) 9591 33541498 4.7303
GENERAL PUBLIC (FOREIGN) 251 930269 .1311
OTHERS 255 12155297 1.7142
FOREIGN COMPANIES 34 64107528 9.0410
COMPANY TOTAL 10321 709071295 100.0000

Agriculture
made easy
Agriculture Farming Program

Competitive mark-up rate
Quick & easy processing
Delivery at the farmer’s doorstep
Technical guidance to farmers
Wide range of financing schemes for farmers
Financing against pass book, residential / commercial property,
gold ornaments and papers security
Finance facility upto Rs. 500,000 for landless farmers against personal guarantee
Loan facility on revolving basis for three years (renewable without documentation & approval)
Headoffice Management
S. Ali Raza CREDIT MANAGEMENT GROUP

Shahid Anwar Khan
Suleman Shamsuddin Senior Executive Vice President & Group Chief
PS to the President Tel: (021) 9212177, 9212255
Tel: (021) 9212208, 9212200 Fax: (021) 9212179
Fax: (021) 9212774
PRESIDENT's SECRETARIAT Credit Management Service and Coordination,

Administration & Student Loans
Amim Akhtar Muhammad Riaz Khokhar
Executive Vice President & Executive Vice President
PSO to the President / Head of P.R. Tel: (021) 9212714
Tel: (021) 9212234 Fax: (021) 9212278
Fax: (021) 9212253
Commercial/Corp./Consumer Credit (North)
SECRETARY BOARD OF DIRECTORS Wajahat A. Baqai
Senior Vice President
Ekhlaq Ahmed Tel: (021) 9212703
Executive Vice President & Secretary Board Fax: (021) 9212863
Tel: (021) 9212224
Fax: (021) 9212239
Credit Monitoring
Muhammad Rashid Ghani
CORPORATE & INVESTMENT BANKING GROUP Senior Vice President
Tel: (021) 9212825
Masood Karim Shaikh Fax: (021) 9212863
Senior Executive Vice President & Group Chief
Tel: (021) 9212741
Fax: (021) 9212795 Industry Research & Analysis
K. Ahsan Elahi
Corporate Banking (South) Karachi Tel: (021) 9213115
Ms. Fareena Lodhi Fax: (021) 9213116
Senior Vice President / Head of Corporate (South)
Tel: (021) 9212193
Fax: (021) 9212775 Commercial/Corp./Consumer Credit (South)
Muhammad Mubashir Ahmed
Vice President
Corporate Banking (North) Lahore Tel: (021) 9212277
Rizwan Hameed Fax: (021) 9212748
Senior Vice President / Head of Corporate (North)
Tel: (042) 9213237
Fax: (042) 9211242 Policy / Procedure & SME Credit
Mrs. Azra Naila Uzair
Vice President
Investment Banking Tel: (021) 9212222
Syed Misbah Maqbool Fax: (021) 9213118
Vice President / Head of Equity Investment
Tel: (021) 9211370
Fax: (021) 9212257 Financial Institutions
Ms. Amna Hafeez
Vice President
Tel: (021) 9213104
Fax: (021) 9212765
Economic Research Technology Support

Ms. Aysha Mehmood Usman Hameed
Vice President Senior Vice President
Tel: (021) 9212274 Tel: (021) 9213194
Fax: (021) 9212846 Fax: (021) 9212771
OPERATIONS GROUP
Financial Institutional & Cash Manag. Division
Dr. Asif A. Brohi Muhammad Nadeem
Senior Executive Vice President & Group Chief Senior Vice President
Tel: (021) 9212794, 9212768 Tel: (021) 9213101, 9213013
Fax: (021) 9212266
AUDIT & INSPECTION GROUP

Treasury & Settlement
Moizuddin Khan Imam Bakhsh Baloch
Executive Vice President Senior Executive Vice President & Group Chief
Tel: (021) 9212754 Tel: (021) 9212758, 9212267
Fax: (021) 9212816 Fax: (021) 9212192, 9213190
Logistic Support & Security Zahir Shah

Agha Asadullah Executive Vice President
Executive Vice President Tel: (021) 9212721
Tel: (021) 9212720 Fax: (021) 9212721
Fax: (021) 9212831
Internal Audit & Inspection

Customer Facilitation & Admn. Muhammad Khalid Idrees
Syed Najamuddin Senior Vice President
Senior Vice President Tel: (021) 9212240
Tel: (021) 9212700 Fax: (021) 9217289
Fax: (021) 9212268
Monitoring & Evaluation

Customer Services & Govt. Business Syed Mohsin Iqbal Rizvi
Khalid Mehmood Vice President
Senior Vice President Tel: (021) 9212210
Tel: (021) 9213171 Fax: (021) 9212210
Fax: (021) 9217297
Administration (A&IG)
Engineering Muhammad Nasir Khan
Kh. Abdul Jalil Vice Presient
EVP / Chief Engineer Tel: (021) 9212283
Karachi Office: Fax: (021) 9212283
Tel: (021) 9212299
Fax: (021) 9212822
Lahore Office: Systems & Secretarial Support
Tel: (042) 9211216, 7242695 Mrs. Ayesha Khalid
Fax: (042) 9211223 Assistant Vice President
Tel: (021) 9212283
Fax: (021) 9212283
Inter Branch Reconciliation (IBR)
Mushtaq Ahmed Madraswala
Tel: (021) 9212294
Fax: (021) 9212189
EDP Audit & Automation Risk Review Division

Mashkoor Ahmed Khan Mrs. Tahira Raza
Assistant Vice President Executive Vice President / Divisional Head
Tel: (021) 9213119 Tel: (021) 9212744
Fax: (021) 9213119 Fax: (021) 9212820
Regional Audit Offices Market & Liquidity Risk

Bilal Qadir Jiskani Faisal Khan
EVP / Regional Audit Chief, Senior Vice President
Southern Region Karachi Tel: (021) 9212718
Tel: (021) 4380369
Fax: (021) 4380370
Credit Risk
Saleem Ahmed
Fayyaz Rabbani Vice President
EVP / Regional Audit Chief, Tel: (021) 9212273
Central Region Lahore
Tel: (042) 5422331, 7846055
Fax: (042) 7842058 HUMAN RESOURCES MANAGEMENT &
ADMINISTRATION GROUP
Fazalur Rehman Dr. Mirza Abrar Baig

EVP / Regional Audit Chief, Senior Executive Vice President & Group Chief
Northern Region Islamabad. Tel: (021) 9212743
Tel: (051) 9202390 Fax: (021) 9211219
Fax: (051) 9205201
Industrial Relations Division
Mohsin Furqan
COMPLIANCE GROUP Executive Vice President / Divisional Head
Tel: (021) 9212215
Ziaullah Khan Fax: (021) 9212263
Senior Executive Vice President & Group Chief
Tel: (021) 9212827
Fax: (021) 9212235 Organization Development & Training
Muhammad Hanif
Executive Vice President
Compliance Tel: (021) 5678929
Muhammad Rafique Fax: (021) 9206047
Tel: (021) 9212254
Fax: (021) 9212219 Staff Welfare & Staff Loans
Abid Hussain Awan
Executive Vice President
Usman Aziz Tel: (021) 9212752
Senior Vice President Fax: (021) 9213169
Tel: (021) 9217546
Fax: (021) 9217549
Personnel Administration
Muhammad Ishaque Abbasi
SBP Inspection Senior Vice President
Ehsanul Haq Tel: (021) 9212868
Vice President Fax: (021) 9212792
Tel: (021) 9212812
Fax: (021) 9212812
Institutional Discipline S. Zaheerullah Rizvi

Muhammad Afsar V.P. / Director
Senior Vice President Staff College Karachi
Tel: (021) 9212226 Tel: (021) 9202490-94
Fax: (021) 9213188 Fax: (021) 9206050
HR Policies & Projects COMMERCIAL & RETAIL BANKING GROUP

M. Aftab A. Mehkri
Senior Vice President Amer Siddiqui
Tel: (021) 9212869 Senior Executive Vice President & Group Chief
Fax: (021) 9212280 Tel: (021) 9212797
Fax: (021) 9212790
Legal Affairs
A. Saeed Khan SME Division
Senior Vice President Kamran Amin
Tel: (021) 9212752 Executive Vice President / Divisional Head
Fax: (021) 9212264 Tel: (042) 9211209
Fax: (042) 9211215
Sports
Iqbal Qasim Agriculture Division
Executive Vice President Tariq Jamali
Tel: (021) 4527427 Executive Vice President / Divisional Head
Fax: (021) 4527426 Tel: (021) 9212715, 9212231
Fax: (021) 9212296
Sports & Culture Committee

Qamar Hussain Commercial Banking
Senior Vice President / Secretary Khurram Saeed Naik
Tel: (021) 9212787 Senior Vice President
Fax: (021) 9212761 Tel: (021) 9212735
Fax: (021) 9212191
Staff Colleges
Saghir Ahmed Credit (Retail)
V.P. / Director Riaz Hussain
Staff College Lahore Senior Vice President
Tel: (042) 9211236, 9211287 Tel: (021) 9212853
Fax: (042) 9211203 Fax: (021) 9212824
Muhammad Afzal MIS

V.P. / Director Imran Farooqui
Staff College Islamabad Senior Vice President
Tel: (051) 9206827 Tel: (021) 9213110
Fax: (051) 9206030 Fax: (021) 9213161
Rehmatullah Khan Collection

V.P. / Director Zuhair Mirza
Staff College Peshawar Senior Vice President
Tel: (091) 9217115 Tel: (021) 9217278
Fax: (091) 9217117 Fax: (021) 9213163
Quality Assurance
FINANCIAL CONTROL DIVISION
Farooq Ahmed
Vice President
Aamir Sattar
Tel: (021) 9217260
SVP / Financial Controller / Divisional Head
Fax:(021) 9212824
Tel: (021) 9212772
Fax: (021) 9212701
Advance Salary / NSM
Farhad Zulfiqar Ali
Vice President
Financial Accounts
Tel: (021) 9212769
Shamsul Arfin
Fax: (021) 9213161
Vice President
Tel: (021) 9212871
Fax: (021) 9212701
Media & Marketing
Miss. Saima Aziz
Assistant Vice President
Business Performance Review
Tel: (021) 9212773
Faisal Ahmed
Fax: (021) 9213161
Vice President
Tel: (021) 9212791
TREASURY MANAGEMENT GROUP Fax: (021) 9212701
Muhammad Nusrat Vohra
Senior Executive Vice President & Group Chief Taxation
Tel: (021) 9212737 Abdul Rahim
Fax: (021) 9212857 Vice President
Tel: (021) 9213183
Fax: (021) 9212701
Naveed Mundh
Executive Vice President & Chief Dealer
Tel: (021) 9212747 Fixed Assets Inventory
Fax: (021) 9211439-40 Wasi Murtaza
Tel: (021) 9213182
Money Market & Securities Fax: (021) 9213173
Shuja Haider
Vice President
Tel: (021) 9212842, 9212704 Equity & Investment
Fax: (021) 9211439-40 Muzaffar S. Khan
Vice President
Tel: (021) 9212859
Foreign Exchange Fax: (021) 9212841
M. Ismail Usuf
Vice President
Tel: (021) 9212739, 9212724 SPECIAL ASSETS MANAGEMENT GROUP
Fax: (021) 9211439-40
Tajammal Hussain Bokharee
Executive Vice President & Group Chief
Corporate Treasury Karachi Office.
Ehtesham Rashid Tel: (021) 9212742 , 9212223
Vice President Fax: (021) 9212218
Tel: (021) 9211437 Lahore Office.
Fax: (021) 9211439-40 Tel: (042) 9212327
Fax:(042) 9211242
Agha Sajid
Assistant Vice President SAMG - North (Lahore)
Tel: (021) 9211437 Salim Ansar
Fax: (021) 9211439-40 Executive Vice President
Tel: (042) 9220356
Fax: (042) 9220276
SAMG - South Trustee Business

Muhammad Manzoor-ul-Haq Waqar Ahmad
Executive Vice President Assistant Vice President
Tel: (021) 9203560 Tel: (021) 9212100 (Ext.2566)
Fax: (021) 9203575 Fax: (021) 9212249
SAMG - Head Office OVERSEAS CO-ORDINATION &

Sahibzada Rafat Raoof Ali MANAGEMENT GROUP
Tel: (021) 9212237, 9213184 Tahir Yaqub
Fax: (021) 9212297 Executive Vice President & Group Chief
Tel: (021) 9212845
Fax: (021) 9212706S.
Legal Aid
Muhammad Anis
Vice President M. Baqir Bukhari
Tel: (021) 9212723 Senior Vice President
Fax: (021) 9212297 Tel: (021) 9212729
Fax: (021) 9213170
Policies and Strategic Planning

Mrs. Rahila Ansari Funds Managmenet
Vice President Nazir Ahmed
Tel: (021) 9212723 Vice President
Fax: (021) 9212297 Tel: (021) 9212309
Fax: (021) 9212770
Statistics & Returns

Syed Hasan Mustafa Naqvi ISLAMIC BANKING DIVISION
Tel: (021) 9212207 Anwar Ahmed Meenai
Fax: (021) 9212207 Executive Vice President & Divisional Head
Tel: (021) 9212702
EMPLOYEES BENEFITS, DISBURSEMENTS & Fax: (021) 9217086
TRUSTEES DIVISION
Mrs. Khurshid Maqsood Ali Sarfraz Ahmed

Executive Vice President & Divisional Head Vice President
Tel: (021) 9212206 Tel: (021) 9217197
Fax: (021) 9212249 Fax: (021) 9217086
Payments
Hafeezur Rehman Khan INFORMATION TECHNOLOGY GROUP
Vice President
Tel: (021) 9212262 Atif Hassan Khan
Fax: (021) 9212249 S.V.P. / Group Chief (A)
Tel: (021) 9212228
Fax: (021) 9211192
Computer
Muhammad Younus
Assistant Vice President Operations
Tel: (021) 9212852 Syed Ziaul Hasan
Fax: (021) 9212249 Senior Vice President
Tel: (021) 9212201
Fax: (021) 9212785
Project Management
Muhammad Shahid
Tel: (021) 9213160
Fax: (021) 9211181
System Development
Atif Mumtaz
Tel: (021) 9212173
Fax: (021) 9212214
Admn. (I.T.)
Muhammad Nasrullah
Vice President
Tel: (021) 9212282
Fax: (021) 9212844
PUBLICITY & PUBLIC RELATIONS
Raees Iqbal
Vice President
Tel: (021) 9212259
Fax: (021) 9212761
Life is
Precious
* Provided the insured is not actively involved in these activities.
Personal Accident Insurance

No Medical Required
No Documentation
Preimum Auto Deduction Facility
Choice of Deactivation includes death due to:
Natural Calamities e.g. Earthquake, Flood,Ccyclone etc.
Accident
Riots*
Civil Commotion*
Strikes*
Acts of Terrorism*
Domestic
Operations 23
27
28
24
25 29
20
11
26 19 21 22
10
14 8
12
13
9
18
15
6 17
16
NBP has a vast network of 1232 branches within Pakistan.

7
It’s Subsidaries are:
2
3
NBP Capital Limited.
NBP Modaraba Management Company Limited.
1 NBP Exchange Company Limited
Taurus Securities Limited
REGIONAL OFFICES
1. Karachi (South) 11. Sialkot 21. Jhelum
2. Karachi (West) 12. Faisalabad 22. Gujrat
3. Hyderabad 13. Jhang 23. Gilgit
4. Larkana 14. Sargodha 24. Peshawar
5. Sukkur 15. Multan 25. Mardan
6. Quetta 16. Bahawalpur 26. Dera Ismail Khan
7. Gawadar 17. Dera Ghazi Khan 27. Abbottabad
8. Lahore (Central) 18. Sahiwal 28. Muzaffarabad (A.K)
9. Lahore (East) 19. Federal Capital - Islamabad 29. Mirpur (A.K)
10 Gujranwala 20. Rawalpindi
Domestic Operations
Regional Office, Karachi (South) Kazi Imtiaz Ahmed

V.P. / Regional H.R. Chief
Sultana Naheed Tel: (021) 9202472, 9203553
S.V.P. / Regional Business Chief Fax: (021) 9202393
Tel: (021) 9250022, 9250033
Fax: (021) 9251300 Regional Office, Hyderabad
Tariq Akhtar Khan

Parvez Taj Bhatti S.V.P / Regional Business Chief
V.P. / Regional Operations Chief Tel: (022) 9200556, 9200616
Tel: (021) 9251315, 9251332 Fax: (022) 9200559
Fax: (021) 9251316
Qurban Ali Kunbhar

Abdul Wajid V.P. / Regional Operations Chief
V.P. / Regional Credit Management Chief Tel: (022) 9200563, 9200399
Tel: (021) 9251317, 9251320 Fax: (022) 9200710
Fax: (021) 9251318
Shabber Muhammad Khan

Muhammad Iqbal A.V.P. / Regional Credit Management Chief
V.P. / Regional Compliance Chief Tel: (022) 9200560
Tel: (021) 9251313 Fax: (022) 9201054
Fax: (021) 9251312
S. M. Rashid Nabi
Fouzia Mumtaz A.V.P. / Regional Compliance Chief
A.V.P. / Regional H.R. Chief Tel: (022) 9200562
Tel: (021) 9251347 Fax: (022) 9201192
Fax: (021) 9251325
Regional Office, Karachi (West) Mushtaq Ahmed Shaikh

Regional H.R. Chief
Javed Haider Tel: (022) 9200617
V.P. / Regional Business Chief Fax: (022) 9201083
Tel: (021) 9203533-34
Fax: (021) 9203535 Regional Office, Larkana
Muhammad Hassan Khaskheli

Syed Fazal Aziz S.V.P. / Regional Business Chief
V.P. / Regional Operations Chief Tel: (074) 9410834
Tel: (021) 9202476, 9202497 Fax: (074) 9410829
Fax: (021) 9202481
Dr. Jalil Ahmed Tariq

Salman Talat V.P. / Regional Operations Chief
V.P. / Regional Credit Management Chief Tel: (074) 9410823
Tel: (021) 9203561, 9203504 Fax: (074) 9410868
Fax: (021) 9203545
Ghulam Ali Bhutto

M. Naeem Ansari A.V.P. / Regional Credit Management Chief
Tel: (021) 9203550, 9203543 Fax: (074) 9410871
Fax: (021) 9203509
Domestic Operations
Bashir Ahmed Samejo M. Shafiullah Khan

A.V.P. / Regional Compliance Chief V.P. / Regional CreditManagement Chief
Tel: (074) 9410863 Tel: (081) 9202094
Fax: (074) 9410863 Fax: (081) 9202064
Abdul Karim Bilali Naseem Ahmed

Regional H.R. Chief A.V.P. / Regional Compliance Chief
Tel: (074) 9410864 Tel: (081) 9202235
Fax: (074) 9410864 Fax: (081) 9201086
Regional Office, Sukkur Ali Ahmed

A.V.P. / Regional H.R. Chief
Muhammad Zaman Khan Tel: (081) 9201350
Tel: (071) 9310270, 9310275
Fax: (071) 9310262
Regional Office, Gawadar
Parvaiz Gill Agha Fidaullah

V.P. / Regional Operations Chief S.V.P. / Regional Business Chief
Tel: (071) 9310272 Tel: (086) 4211167, 4211546
Fax: (071) 9310271 Fax: (086) 4211521
Abdul Majid Sheikh Nisar Ahmed

A.V.P. / Regional Credit Management Chief V.P. / Regional Operations Chief
Tel: (071) 9310274 Tel: (086) 4211547
Fax: (071) 9310271 Fax: (086) 4211521
Muhammad Azam Bachani Pervaiz Ahmed Kiyani

A.V.P. / Regional Compliance Chief A.V.P. / Regional Credit Management Chief
Tel: (071) 9310273 Tel: (086) 4211549
Fax: (071) 9310271 Fax: (086) 4211521
Gulzar Ahmed Sanghar Mansoor Ali Khan

V.P. / Regional H.R. Chief A.V.P. / Regional Compliance Chief
Tel: (071) 9310287 Tel: (086) 4211549
Fax: (071) 9310271, 9310265 Fax: (086) 4211521
Regional Office, Quetta Regional Office, Lahore Central
Muhammad Ali Durrani Muhammad Imran Butt

V.P. / Regional Business Chief S.V.P. / Regional Business Chief
Tel: (081) 9202624, 9202568 Tel: (042) 9211221, 9211241
Fax: (081) 9202093 Fax: (042) 9211244
Manzoor Ahmed
V.P. / Regional Operations Chief Muhammad Iqbal
Tel: (081) 9201864 V.P. / Regional Operations Chief
Fax: (081) 9201698 Tel: (042) 9211206
Fax: (042) 9211245
Domestic Operations
Akhtar Nawaz Khalid Jameel Siddiqui

S.V.P. / Regional Credit Management Chief V.P. / Regional Operations Chief
Tel: (042) 9211229 Tel: (055) 9200338
Fax: (042) 9211202 Fax: (055) 9201229
Abdul Ghafoor
Syed Shabbir Ahmed V.P. / Regional Credit Management Chief
A.V.P. / Regional Compliance Chief Tel: (055) 9200337
Tel: (042) 9213250 Fax: (055) 9201230
Fax: (042) 9213241
Amir Manzoor
Muhammad Rasheed Butt V.P. / Regional Compliance Chief
V.P. / Regional H.R. Chief Tel: (055) 9200246
Tel: (042) 9211218 Fax: (055) 9201231
Fax: (042) 9213231
Regional Office, Lahore East Haseeb Arshad

Farman Ahmed Ch. Tel: (055) 9200336
Tel: (042) 9211314, 9211211
Fax: (042) 9211249 Regional Office, Sialkot
Shahid Iqbal Dar

Muhammad Naeem Aslam V.P. / Regional Business Chief
V.P. / Regional Operations Chief Tel: (052) 9250291-92
Tel: (042) 9211208, 9211233 Fax: (052) 9250294
Fax: (042) 9211243
Muhammad Riaz
Khalid Bashir V.P. / Regional Operations Chief
S.V.P. / Regional Credit Management Chief Tel: (052) 9250117
Tel: (042) 9211210 Fax: (052) 9250118
Fax: (042) 9211217
Muhammad Akram
Muhammad Saleem Tahir S.V.P. / Regional Credit Management Chief
Tel: (042) 92111214 Fax: (052) 9250299
Fax: (042) 9213404
M. Gulrez Akhtar
Nayar Sami A.V.P. / Regional Compliance Chief
V.P. / Regional H.R. Chief Tel: (052) 9250119
Tel: (042) 9213406, 7359612 Fax: (052) 9250447
Fax: (042) 9211232
Regional Office, Gujranwala M. Ehsan Tabassum

Karamat Ali Ch. Tel: (052) 9250120
Tel: (055) 9200339
Fax: (055) 9200314
Regional Office, Faisalabad
Muhammad Aslam Mirza

S.V.P. / Regional Business Chief
Tel: (041) 9200737-38
Fax: (041) 9200741
Domestic Operations
Muhammad Ishaq Bhatti Regional Office, Sargodha

V.P. / Regional Operations Chief
Tel: (041) 9200739 Muhammad Farrukh Ghauri
Fax: (041) 9200322 V.P. / Regional Business Chief
Tel: (048) 9230471
Fax: (048) 9230473
Abdul Jamal Tariq Hassan
V.P. / Regional Credit Management Chief
Tel: (041) 9200735, 9201375 Nasir Abbas
Fax: (041) 9200323 V.P. / Regional Operations Chief
Tel: (048) 9230495
Fax: (048) 9230496
Tauseef Akram
A.V.P. / Regional Compliance Chief
Tel: (041) 9200326 Farooq Abbas
Fax: (041) 9201374 V.P. / Regional Credit Management Chief
Tel: (048) 9230596
Fax: (048) 9230497
Masood Iqbal
Tel: (041) 9200108 Muhammad Tahir Chaudhry
Fax: (041) 9200736 V.P. / Regional Compliance Chief
Tel: (048) 9230704
Regional Office, Jhang Fax: (048) 9230704
Ch. Muhammad Irshad

V.P. / Regional Business Chief Jameel Anwar Cheema
Tel: (047) 7613548, 7611748 A.V.P. / Regional HR Chief
Fax: (047) 7621025 Tel: (048) 9230500
Fax: (048) 9230496
Imdad Hussain Khan

Regional Office, Multan
Tel: (047) 7627857
Shahzad A. Shami
Fax: (047) 7621025
S.V.P. / Regional Business Chief
Tel: (061) 9200866, 9200867
Fax: (061) 9200116
Atta Muhammad Qaiser
A.V.P. / Regional Credit Management Chief
Tel: (047) 7627008
Muhammad Zulfiqar Haider
Fax: (047) 7628007
Tel: (061) 9200521
Fax: (061) 9200716
Khalid Pervaiz
A.V.P. / Regional Compliance Chief
Tel: (047) 7627932
Muhammad Younus
Fax: (047) 7627932
Tel: (061) 9200714
Fax: (061) 9201017
Jawad Hussain
A.V.P. / Regional HR Chief
Tel: (047) 7614248, 651025
Iqbal Anwar
Fax: (047) 7614248
V.P. / Regional Compliance Chief
Tel: (061) 9200119
Fax: (061) 9200120
Domestic Operations
Ihsan-ul-Haq Iqbal Ahmed Baloach

S.V.P. / Regional H.R. Chief A.V.P. / Regional Compliance Chief
Tel: (061) 9200117 Tel: (064) 9260395
Fax: (061) 9200116 Fax: (064) 9260395
Regional Office, Bahawalpur

Muhammad Suleman
Muhammad Rafique AVP / Regional HR Chief
S.V.P. / Regional Business Chief Tel: (064) 9260411
Tel: (062) 9250128-29 Fax (064) 9260410
Fax: (062) 9250332
Regional Office, Sahiwal
Ghulam Murtaza Shah Rao Abdul Rauf

V.P. / Regional Operations Chief S.V.P. / Regional Business Chief
Tel: (062) 9250132 Tel: (040) 9200251
Fax: (062) 9250130 Fax: (040) 9200252
Muhammad Asaad Sarla Muhammad Akram Khan

Tel: (062) 9250242 Tel: (040) 9200256
Fax: (062) 9250332 Fax: (040) 9200261
Muhammad Shafique Basharat Hussain

V.P. / Regional Compliance Chief V.P. / Regional Credit Management Chief
Tel: (062) 9250135 Tel: (040) 9200254
Fax: (062) 9250329 Fax: (040) 9200254
Muhammad Shafi Ch. Muhammad Amjad

A.V.P. / Regional HR Chief V.P. / Regional Compliance Chief
Tel: (062) 9250134 Tel: (040) 9200253
Fax: (062) 2750450 Fax: (040) 9200252
Regional Office, D. G. Khan Rao Muhammad Farooq

V.P. / Regional HR Chief
Nausheen Jamil Tel: (040) 9200255
Tel: (064) 9260408
Fax: (064) 9260409
Regional Office, Federal Capital (Islamabad)
Muhammad Shafi Lashari Khawar Saeed
A.V.P. / Regional Operations Chief S.V.P. / Regional Business Chief
Tel: (064) 2472672 Tel: (051) 9206570, 9202454
Fax: (064) 9260568 Fax: (051) 9204987
Shahid Ali Khan Raja Asad Habib

Tel: (064) 9260394 Tel: (051) 9206547, 9204042
Fax: (064) 9260394 Fax: (051) 9204717
Domestic Operations
Tariq Mahmood Basharat Ali

V.P. / Regional Credit Management Chief V.P. / Regional Operations Chief
Tel: (051) 9206490, 9206246 Tel: (0544) 9270183, 9270416
Fax: (051) 2824114 Fax: (0544) 9270188
Malik M. Hayat Ali Azam

V.P. / Regional Compliance Chief A.V.P. / Regional Credit Management Chief
Tel: (051) 9202946 Tel: (0544) 9270121
Fax: (051) 9206378 Fax: (0544) 9270123, 9270188
Shahid Iqbal Qureshi Muhammad Riaz Asim

V.P. / Regional HR Chief A.V.P. / Regional Compliance Chief
Tel: (051) 9203727 Tel: (0544) 9270120
Fax: (051) 9207260 Fax: (0544) 9270123, 9270188
Regional Office, Rawalpindi

Naseer Muhammad Butt
Mirza Tariq Baig A.V.P. / Regional HR Chief
Tel: (051) 9272660-61 Fax: (0544) 9270024
Fax: (051) 9272662
Regional Office, Gujrat
Mushtaq Ahmed Awan Ch. Shahid Farooq

V.P. / Regional Operations Chief V.P. / Regional Business Chief
Tel: (051) 9272663-64 Tel: (053) 9260150
Fax: (051) 9272768 Fax: (053) 9260151
M. Mumtaz Rafi Zaheer Ahmed

V.P. / Regional Credit Management Chief A.V.P. / Regional Operations Chief
Tel: (051) 9272771 Tel: (053) 9260152
Fax: (051) 9272771 Fax: (053) 3602044
Nazir Ahmed Ata-ul-Mohsan Tahir

V.P. / Regional Compliance Chief A.V.P. / Regional Credit Management Chief
Tel: (051) 9272770 Tel: (053) 9260163
Fax: (051) 9272770 Fax: (053) 9260151
M. Tariq Khattak Shahzad Ahmed Cheema

Tel: (051) 9272772 Tel: (053) 9260164
Fax: (051) 9272093 Fax: (053) 9260151
Regional Office, Jhelum

Abdul Aziz
Shahid Iqbal Khan A.V.P. / Regional HR Chief
V.P. / Regional Business Chief Tel: (053) 9260154
Tel: (0544) 9270119 Fax: (053) 9260151
Fax: (0544) 9270123
Domestic Operations
Regional Office, Gilgit Regional Office, Mardan
Muhammad Arif Shah Jehan Khan

S.V.P. / Senior Coordinator S.V.P. / Regional Business Chief
Tel: (05811) 52565 Tel: (0937) 9230053, 9230056
Fax: (05811) 52685 Fax: (0937) 9230057
Shahid Pervez Dar Tabraiz Hassan Butt

V.P. / Regional Operations Chief V.P. / Regional Operations Chief
Tel: (05811) 50385 Tel: (0937) 9230328
Fax: (05811) 52255 Fax: (0937) 9230422
Muhammad Irfan Hasham Khan

V.P. / Regional HR Chief V.P. / Regional Credit Management Chief
Tel: (05811) 51853 Tel: (0937) 9230326
Fax: (05811) 52685 Fax: (0937) 9230057
Regional Office, Peshawar

Naseer-ud-Din
Muhammad Hanif Khan V.P. / Regional Compliance Chief
Tel: (091) 9211355 Fax: (0937) 9230327
Fax: (091) 9210646
Syed Waseem Akhtar

Sardar Alam Khan V.P. / Regional HR Chief
S.V.P. / Regional Operations Chief Tel: (0937) 9230019
Tel: (091) 9211358 Fax: (0937) 9230057
Fax: (091) 92111639
Regional Office, Dera Ismail Khan
Sharif Gul Bangash Shehryar Qaisrani

V.P. / Regional Credit Management Chief S.V.P. / Regional Business Chief
Tel: (091) 9213182 Tel: (0966) 9280431, 810489
Fax: (091) 92106503 Fax: (0966) 9280430
Saminullah Khan Inayatullah Khan

V.P. / Regional Compliance Chief V.P. / Regional Operations Chief
Tel: (091) 9211627 Tel: (0966) 9280432
Fax: (091) 9210650 Fax: (0966) 9280440
Mrs. S. Nazneen Zaka Muhammad Sajid Mirza

A.V.P. / Regional HR Chief V.P. / Regional Credit Management Chief
Tel: (091) 9211359 Tel: (0966) 9280433
Fax: (091) 9214103 Fax: (0966) 9280441
Muhammad Khalid
V.P. / Regional Compliance Chief
Tel: (0966) 9280434
Fax: (0966) 9280057
Domestic Operations
Mir Abdullah Muhammad Aslam Ch.

Tel: (0966) 9280436 Tel: (058810) 32378
Fax: (0966) 9280437 Fax: (058810) 32379
Regional Office, Abbottabad

Raja Muhammad Mumtaz
Shaukat Mehmood A.V.P. / Regional HR Chief
V.P. / Regional Business Chief Tel: (058810) 32381
Tel: (0992) 9310141 Fax: (058810) 32379
Fax: (0992) 9310142
Regional Office, Mirpur (A.K.)
Manzoor Ellahi Lughmani Tariq Zafar Iqbal

V.P. / Regional Operations Chief V.P. / Regional Business Chief
Tel: (0992) 9310144 Tel: (058610) 43662
Fax: (0992) 9310318 Fax: (058610) 46007
Moeen-ud-Din Malik Muhammad Essa Khan

V.P. / Regional Credit Management Chief V.P. / Regional Operations Chief
Tel: (0992) 9310312 Tel: (058610) 42549
Fax: (0992) 9310142 Fax: (058610) 46339
Sajjad Ali Kaka Khel Javed Anwar Khan

V.P. / Regional Compliance Chief V.P. / Regional Credit Management Chief
Tel: (0992) 9310147 Tel: (058610) 42625
Fax: (0992) 9310318 Fax: (058610) 46340
Miss. Taranum Sarwar Tallat Khurshid

V.P. / Regional HR Chief V.P. / Regional Compliance Chief
Tel: (0992) 9310313 Tel: (058610) 45199
Fax: (0992) 9310318 Fax: (058610) 45199
Regional Office, Muzaffarabad (A.K.) Qurban Hussain

A.V.P. / Regional HR Chief
Abdul Hameed Raja Tel: (058610) 42547
Tel: (058810) 32382, 32064
Fax: (058810) 32379
Muhammad Ashfaq Khan

Tel: (058810) 32065
Fax: (058810) 32379
Mushtaq Ahmed Shaikh

Tel: (058810) 32378
Fax: (058810) 32379
Small
steps make the
Difference
Margin Finance Facility

Comfortable and secure environment for trading
Easy terms requiring minimum documentation
Minimum turnaround time
No security requirement from the customer except for the customer’s equity
Customer’s equity freely available for investment
Equity acceptable in cash or approved shares
Encash
& meet your
needs
Ready cash against Gold

Facility of Rs. 7,000 against each 10 gms of net weight of gold ornaments
No maximum limit of cash
Repayment after one year
Roll over facility
No penalty for early repayment
Overseas
Operations
Canada
United States
of America
18 OVERSEAS BRANCHES
United States of America 2 Bangladesh 2
France 1 Republic of Korea 1
Germany 1 Kyrgyzstan 1
Bahrain 1 Japan 2
Turkmenistan 1 Hong Kong 2
Pakistan EPZ 1 Azerbaijan 1
Afghanistan 2
People’s
Republic of China
United Kazakhstan
Kingdom
Republic
Korea
Uzbekistan
Turkmenistan
France Germany
Azerbaijan Afghanistan Kyrgyzstan
Japan
Bangladesh
Pakistan
Bahrain
Subsidiary Joint Venture Representative Office
NBP Almaty United National Bank (UK) Canada

USA (Chicago)
China
Uzbekistan
Senior Management Overseas Operations
R.A. Kaleemi
SEVP / Chief Representative, Canada Office
M. Rafiq Bengali
SEVP / Regional Chief Executive, Americas Region
Asif Hassan
SEVP / Regional Chief Executive, Far East Region
Nausherwan Adil
SEVP / Regional Chief Executive, Europe Region
M. Farooq Saleem
EVP / Regional Chief Executive, Central Asian Republics Region
Zubair Ahmed
EVP / Regional Chief Executive, Middle East, Africa & South Asia Region
Overseas Operations
REPRESENTATIVE OFFICE, CANADA Chicago Representative Office

M. Adil Khan,
Rasool Ahmed Kaleemi, Manager,
SEVP / Chief Representative 2315 West Devon Avenue
Representative Office, SUIT # 884 Chicago Illinois 60659
24-155 East Beaver Creek Road Tel: 773-508-9728-9738
Richmond Hill Ontario L4B 2NI, Fax:773-508-9723
Canada Telex:6871772 NBP UW
Tel # (905) 2376277 E-mail: nbpchicagousa@aol.com.
Fax # (905) 2370510
E-mail: chiefrep@nbpcanada.com.
EUROPE REGION
AMERICAS REGION
Nausherwan Adil
M. Rafiq Bengali, SEVP / Regional Chief Executive
SEVP / Regional Chief Executive Regional Office, Paris (France)
Regional Office, New York 90 Avenue Des Champs Elysees 75008 Paris
100 Wall Street, Tel: 331-4256-0911
New York, N.Y.10005 Fax:331-4563-6604
Tel:212-344-8822 Telex:290828 F
212-344-8833 E-mail: NBPPARIS@aol.com.
Fax:212-344-8826
Telex:232455 PAKBURB & 62652 NATPA
SWIFT: NBPAUS33 Paris Branch (France)
E-mail:nbprony@aol.com. M. Suhaib Farooqui,
General Manager,
90 Avenue Des Champs Elysees 75008 Paris
Wall Street Branch Tel: 331-4256-0911
Ahmer Azam, Fax:331-4563-6604
General Manager, Telex:290828 F
100 Wall Street, E-mailnbpparis@aol.com.
New York N.Y. 10005
Tel:212-344-8825
212-344-9922 Frankfurt Branch (Germany)
Fax:212-809-4720 Amjad Hamid,
Telex:232455 PAKBUR & 62652 NATPA General Manager
SWIFT: NBPAUS 333 Frankfurt Branch (Germany)
E-mail:nbpnewyork@aol.com. Holzgraben 31
Fillale Frankfurt/Framlfirt Nramcj
60313 Frankfurt am Main
Washington D. C. Branch P. O. Box 101643, Germany
Amjad Ali Sheikh, Tel: 069-97 57 12-0
Manager, Fax:069-74 81 51
Washington D.C. Branch Telex:414103 A NBP D
1875 Connecticut Avenue N.W. E-mail:nbpffm@aol.com.
Washington D.C. 20009
Tel: 202-462-7373-3880
Fax:202-667-2515
Telex:6737932 NATPAK D.C.
E-mail:nbpwashington@aol.com.
Nbpwashington@nbpusa.com.
Overseas Operations
FAR EAST REGION HONG KONG Osaka Branch (Japan)

Shahzad Ahmed,
Regional Office, Hong Kong Manager,
Asif Hassan, Osaka Branch (Japan)
SEVP/Regional Chief Executive Sanei Shinsaibashi Building, 4th Floor 1-13-15
Regional Office, Hong Kong Nishi Shinsaibashi
1801-1805, 18th Floor, Osaka 542-0086, Japan
ING, Towers, 308-320 Tel:816-6244-8934
DES VOEUX Road Central 816-6244-8936
HONG KONG Fax:816-6244-8938
Tel:852-25217321 Telex:5222701 NBPOSKJ
852-25215292 E-mail: nbposaka@skyblue.ocn.ne.jp
Fax:(852) 2139-0298
Telex:75137 MILLAT HX
E-mail:nbphkkm@netvigator.com. Seoul Branch (Republic of Korea)
Abdul Ghafoor,
Manager,
Main Branch, Hong Kong Seoul Branch (Republic of Korea)
Ghulam Hussain Azhar, 12/F, Kyobo Building 1-Chongro IKA,
Chief Executive, Chongo-Ku Seoul, 110, 121,
Main Branch, Hong Kong KPO Box 1663
1801-1805, 18th Floor, Tel:822-734-5815
ING, Tower, 308-320 822-734-0277
DES VOEUX Road Central Fax:822-734-5817
HONG KONG Telex:K32149 MILLAT
Tel:852-25217321, 25231491 & 25375292 E-mail: nbpseoul@Kornet.net
Fax:(852) 28451703
Telex:75137 MILLAT HX
E-mail:nbphkkm@netvigator.com. Representative Office, Beijing (China)
Nasir Hussain,
Manager,
Kowloon Branch Beijing Representative Office (China)
Muhammad Yaqub, Room 435 Kun Lun Hotel
Manager, Kowloon Branch No. 2 Xin Yuan Nan Lu, Chaoyang
1103 Fourseas Building, District, Beijing 100004, P.R.China
208-212 Nathan Road, Kowloon Tel: 86-10-65903388 EXT-435
T.S.T. P.O. Box 99006 Fax: 86-10-65903762
Tel: 852-23697355 7 Lines Telex: 210327 BJK:H CN
852-27245622 E-mail: nbpbj@163bj.com.
Fax:852-23691780
Telex:34357 MILBA HX REGIONAL OFFICE MIDDLE EAST, AFRICA
E-mail:nbpkow@netvigator.com. & SOUTH ASIA REGION
Regional Office, Bahrain

Tokyo Branch (Japan) Mr. Zubair Ahmed,
Ch. Muhammad Rafique, EVP/Regional Chief Executive
General Manager, Regional Office, Bahrain
Tokyo Branch (Japan) 9 Manama Centre, Government Avenue
S. K. Building No. 20, 3F 7-4, P. O. Box No.775, Manama, State of Bahrain.
Nishi Shimbashi-2 Chome Minato-KU Tel:973-224451, 224461, 224191
Tokyo, Japan. Fax:973-224411, 217964
P. O. Box Shiba 272 Tokyo 105-91 Telex:9221 NATPAK BN
Tel:813-3504-1835 E-mail:nbpbn@batelco.com.bh
813-3502-0331 - 34
Fax:813-3502-0359/5402
Telex:J-23847 MILLBANK
E-mail:nbptokyo@gol.com.
Overseas Operations
Bahrain OBU CENTRAL ASIAN REGION

Nadir Khan,
Manager, Regional Office, Almaty (Kazakhstan)
Bahrain OBU Muhammad Farooq Saleem
9 Manama Centre, Government Avenue EVP/Regional Chief Executive,
P. O. Box No.775, Manama, State of Bahrain. Regional Office, Central Asian Republics
Tel:973-224451, 224461, 224191 Building No.105, Dostyk Avenue, 050051
Fax:973-224411, 217964 Almaty (Kazakhstan)
Telex:9222 NATPAK BN Tel: (7-3272) 60-89-93
E-mail:nbpbn@batelco.com.bh (7-3272) 59-76-01
Fax:(7-3272) 60-89-92
E-mail: nbp.ro.almaty@nursat.kz
Dhaka Branch (Bangladesh)
Q. S. M. Jehanzeb
General Manager, NBP Subsidiary Almaty
Dhaka Branch (Bangladesh) Syed Azhar Ali,
79, Motijheel Commercial Area, Dhaka-1000 General Manager, Subsidiary Bank
Tel:880-295-60248 Building No.105, Dostyk Avenue, 050051
880-295-60249 Almaty (Kazakhstan)
Fax:880-295-60247 Tel:(7-3272) 597602, (7-3272) 597604 &
Telex:632393 NBP-BJ (7-3272) 597606
E-mail:nbp@agni.com Fax:(7-3272) 597603
Telex: 0785471042
E-mail: nbp.ro.almaty@nursat.kz
Chittagong Branch (Bangladesh)
M. Farooq Zulfiqar,
Manager, Ashgabat Branch (Turkmenistan)
DAAR-E-SHAHIDI Muhammad Fuad Mohsin
69, Agrabad Commercial Area General Manager,
Chittagong (Bangladesh) Ashgabat Branch
Tel # 00-880-31-810272 & 00-880-31-810292 World Trade Complex,
Fax # 00-880-31-810305 Ground Floor, 1 Seidi Street, 744000
Telex: 63315 NBPCT BJ Ashgabat (Turkmenistan)
E-Mail: nbpctg@colbd.com Tel:993-12-351204
993-12-353516
Fax:993-12-350465
PAKISTAN E-mail:nbptm@online.tm
Export Processing Zone Branch, Karachi (Pakistan)

Mr. M. Irfan Kazi, Bishkek Branch (Kyrgyz Republic)
Manager, Naeemullah Jan
Export Processing Branch, Karachi General Manager,
Off-Shore Banking Branch EPZ Bishkek Branch (Kyrgyz Republic)
P. O. Box No. 17004 Landhi, Karachi-75160 Building No.84, Moscowskaya Street,
Tel:(021) 5082218 & 5082220 Bishkek 720021
Fax:(021) 5082219 Kyrgyz Republic
Telex:(021) 27642 NBEPZ Tel:996-312-627245 & 996-312-627246-52
Fax:996-312-900661 & 996-312-627244
E-mail:nbp.bishkek@transfer.kg
SWIFT: NBPAKG22
Overseas Operations
Baku Branch (Azerbaijan)

Sohail Ahmed,
General Manager,
Baku Branch
41, Istiqlaliyyet Street,
Baku. Azerbaijan
Tel:(99-412) 437-16-40 & 42
E-mail:info@nbp-baku.az
SWIFT: NBPAAZ22
Representative Office, Tashkent (Uzbekistan)

2nd Floor, Room No. 254,
56-Buyuk Turon Street,
Le-Meridien Tashkent Palace Hotel,
Tashkent (Uzbekistan)
Tel:(998-71) 1326183 & (998-71) 1205800 (Ext 254)
Fax:(998-71) 1206632
E-mail: nbpro@dostlink.net
AFGHANISTAN BRANCHES
Muhammad Hanif Khan

SVP/Regional Business Chief
Controller Afghan Operations
National Bank of Pakistan
Regional Office,
Bank Road, Peshawar
Tel:(091) 9211355-6
Fax:(091) 9210646
E-mail:rbcmardan@hotmail.com
rbcmardan@yahoo.com
Kabul Branch (Afghanistan)

Syed Mahmood-ul Hassan
General Manager,
House No. 2, Street No. 10
Wazir Akbar Khan
Kabul (Afghanistan).
Tel:00-93-2301660
Fax:00-93-2301659
E-mail:nbpkbl@hotmail.com
Jalalabad Branch (Afghanistan)

Noor-ul Islam,
Manager,
Bank Street
Near Haji Qadeer House
Nahya Awal Jalalabad
Afghanistan
Tel # 0093-75600-3542, 3546
E-mail:nbpjabad@hotmail.com
58th Annual General Meeting of National Bank of Pakistan
FORM OF PROXY
Folio NO. or CDC participant identity No. CDC A/C No.
I/We
of
being a member(s) of the National Bank of Pakistan holding shares No.
HEREBY APPOINT of
also a member of the National Bank of Pakistan (Folio No. ) or failing him/her
of also a member of National Bank of Pakistan(Folio No. )as my/our proxy to
vote for me / us and on my / our behalf at the 58th Annual General Meeting of National Bank of Pakistan, to be held at
10.00 A.M. on Monday the 2nd April 2007 and at any adjournment thereof.
Signed this day of 2007.
Witnesses:
1. Name:
Address: Affix Revenue Stamp

of Five Rupees
NIC No.:
2. Name:
Signature
Address: (Signature should agree with the
specimen signature registered with
NIC No.: the Bank).
NOTES:
A. General
1. A member entitled to attend and vote at a General Meeting is entitled to appoint a proxy to attend and vote instead of him/her. No person shall act as a proxy,
who is not a member of the bank except that Government of Pakistan / State Bank of Pakistan / Corporation may appoint a person who is not a member.
2. The instrument appointing a proxy should be signed by the member or his/her attorney duly authorized in writing. If the member is a corporation (other than
Government of Pakistan and State Bank of Pakistan), its common seal should be affixed on the instrument.
3. The instrument appointing a proxy, together with the power of Attorney, if any, under which it is signed or a notarially certified copy thereof, should be
deposited, with our Registerar / Transfer Agents, Messrs THK Associates (Pvt.) Ltd. Ground Floor, State Life Building No. 3, Dr. Ziauddin Ahmed Road,
Karachi, not less than 48 hours before the time of holding the meeting.
4. If a member appoints more than one proxy, and more than one instrument of proxy are deposited by a member with the bank, all such instruments of proxy
shall be rendered invalid.
B. For CDC Accounts Holders:
1. The proxy form shall be witnessed by two person whose names, addresses and NIC numbers shall be mentioned on the form.
2. Attested copies of NIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
3. The proxy shall produce his / her original NIC or original passport at the time of meeting.
4. In case of government of Pakistan / State Bank of Pakistan / Corporate entity, the Board of Directors’ resolution, / power of attorney with
specimen signature shall be submitted along with proxy form to the bank.

Annual Report 2006

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Contents

Financial Highlights - 2006 07

Six Year Performance at a Glance 08

Statement under section 160 of the Companies Ordinance, 1984 16

Statement of compliance with code of Corporate Governance 28

Auditors’ Review Report to the Members on Statement of Compliance with

Auditors’ Report to the Members 31

Financial Statements - 2006 33

Consolidated Financial Statements of NBP and its Subsidiary Companies-2006 109

Pattern of Shareholding 191

Categories of Shareholders 195

Head Office Management 197

Domestic Operations 206

Overseas Operations 219

To be recognised as a leader and a brand synonymous with trust, highest

Institutionalising a merit and performance culture.

Highest standards of Integrity.

To enhance profitability and maximization of NBP share through increasing

Dr. Waqar Masood Khan

Iftikhar Ali Malik

Sikandar Hayat Jamali

Audit Committee Azam Faruque

Iftikhar Ali Malik

Auditors Ford Rhodes Sidat Hyder & Co.

M. Yousuf Adil Saleem & Co.

Legal Advisors Mandviwala & Zafar

Registered & Head Office NBP Building

Registrar’s & Share Registration Office THK Associates (Pvt.) Ltd.

Authorised Capital 7,500

Paid-up Capital 7,091

Shareholders' Equity and Reserves 81,954

Advances - Net 316,110

Investments - Net 139,947

Total Assets 635,133

Pre-Tax Profit 26,311

After-Tax Profit 17,022

No. of Branches 1,250

No. of Employees 14,019

2001 415,089 349,617 170,319 71,759 11,959

2002 432,803 362,866 140,547 143,525 14,279

2003 468,972 395,492 161,266 166,196 18,134

2004 553,231 465,572 220,794 149,350 24,900

2005 577,719 463,427 268,839 156,985 37,636

2006 635,133 501,872 316,110 139,947 53,045

Total Assets Deposits

Advances Shareholders’ Equity

360,000 60,000 53,045

170,319 161,266 24,900

Pre-Tax After-Tax Earnings Per Return on Assets Number of Number of

3,016 1,149 3.08 0.8% 1,245 15,163

6,045 2,253 5.49 1.4% 1,204 12,195

9,009 4,198 8.53 2.0% 1,199 13,272

11,978 6,195 10.48 2.4% 1,226 13,745

19,056 12,709 17.92 3.4% 1,242 13,824

26,311 17,022 24.01 4.3% 1,250 14,019

Pre-Tax Profit After-Tax Profit

20,000 19,056 12,000

Earnings Per Share Return on Assets (Pre-Tax Profit)

Dr. Waqar Masood Khan Iftikhar Ali Malik

M. Zubair Motiwala Sikandar Hayat Jamali