1. I NFRASTRUCTURE P ROJECT F INANCE Infrastructure, Housing & SME Finance Department

2. Revision in Guidelines Infrastructure Finance Task Force Facilitation in establishment of IDFI Capacity Building Consultative Group Infrastructure Finance Review Development Finance Review 2 Project & Structured Finance Infrastructure Financing – SBP Efforts

3. SBP Guidelines/Regulatory Framework - History Relaxation in Prudential Regulations for Infrastructure Project Financing (IPF) vide BPD Circular No.25 dated July 04, 2003 (http://www.sbp.org.pk/bpd/2003/C25.htm).http://www.sbp.org.pk/bpd/2003/C25.htm Debt equity relaxed to 80:20 for the Infrastructure projects “Concession Agreement/License/Right of Way” issued by Government accepted as a collateral Guidelines For Infrastructure Project Financing (IPF) shared for consultation purposes vide BPD Circular No.25 of July 23, 2005 (http://www.sbp.org.pk/bpd/2005/C23.htm)http://www.sbp.org.pk/bpd/2005/C23.htm Updated IPF Guidelines in August 31, 2010 vide No. IHFD/11 /191/ 2010. The salient features of the revised guidelines:- Includes the requirement for establishing a mechanism for generating feasibility reports and assessing risk mitigation means in the development, construction, start-up and operation stages of the project. Banks and DFIs to establish a proper process for the continuous monitoring of project implementation to ensure proper utilization of the credit while relevant bank accounts will be subject to audit by the SBP. Banks and DFIs encouraged to accept Concession Agreement/Licence issued by a government agency as collateral. The institutions to ensure adequate insurance coverage against all potential risks applicable to the project. At no point shall the bank’s exposure to the risk exceed the bank’s equity, and the exposure availed by any borrower shall also not exceed 10 times the borrower’s equity. 3

4. SBP G UIDELINES - W HAT IS AN I NFRASTRUCTURE ? 4 Infrastructure Project means one of the followings: a)A road, including toll road, fly over, bridge project. b)A mass transit, urban bus, urban rail project. c)A rail-bed, stations system, rail freight, passenger services project. d)A telecommunication local services, long distance and value added project. e)A power generation project. f)A power transmission or distribution project by laying a network of new transmission or distribution lines. g)A natural gas exploration and distribution project. h)An LPG extraction, distribution and marketing project. i)An LPG import terminal, distribution and marketing project. j)An LNG (Liquefied Natural Gas) terminal, distribution and marketing project. k)A water supply, irrigation, water treatment system, sanitation and sewerage system or solid waste management system project. l)A dam, barrage, canal project. m)A primary and secondary irrigation, tertiary (on-farm) irrigation project. n)A port, channel dredging, shipping, inland waterway, container terminals project. o)An airport. p)A petroleum extraction, refinery, pipeline project. q)Any other infrastructure project of similar nature, notified by SBP.

5. I NFRASTRUCTURE P ROJECT F INANCING P ROFILE - T RENDS (A MOUNT IN R S. B ILLIONS ) 5 Project & Structured Finance Infrastructure Project Financing Profile- Trends (Amount in Rs. Billions) Description Dec-08Dec-09Dec-10Dec-11Dec-12 Total Sanctioned Amount 459.6496.5520.3482.6493.5 Amount Disbursed (Cumulative) 203.2251.1349.0356.2356.3 Amount Outstanding 234.4275.9298.5265.5289.3 No of Projects (Cumulative) 291311338337364 NPLs1.38.210.417.117.5 *Cumulative Number of projects is the total number of projects less the matured ones.

6. T OTAL N UMBER OF I NFRASTRUCTURE P ROJECTS - S ECTOR W ISE 6 Project & Structured Finance SectorsDec-08Dec-09Dec-10Dec-11Dec-12 Telecom555456 Power Generation99118145154178 Power Transmission2836322920 Petroleum21 2524 LPG Extract. Dist.96547 LPG Import & Dist6553 2 Oil & Gas Exploration/Distr.2725231911 Road, Bridge, Flyover1918 2036 Water Supply, Sanitation22222 Any other2526272628 Total291311338337364

7. A MOUNT O UTSTANDING - S ECTOR W ISE ( IN B ILLIONS ) 7 Project & Structured Finance SectorsDec-08Dec-09Dec-10Dec-11Dec-12 Telecom47.948.350.342.048.2 Power Generation95.3136.4180.4160.7176.2 Power Transmission33.546.330.526.421.5 Petroleum29.016.810.812.612.9 LPG Extraction/Dist.1.30.90.70.50.9 LPG Import & Dist0.30.2 0.10.5 Oil & Gas Exploration/Distr. 9.38.86.14.84.4 Road, Bridge, Flyover8.67.06.3 6.2 Water Supply, Sanitation0.4 Any other8.910.812.911.718.0 Total234.4275.9298.5265.5289.3

8. IIPF 8 Project & Structured Finance Sectoral Trends - Outstanding Finance (Rs. Millions) SectorsDec-12Dec-11Dec-10Dec-09Dec-08 Power Generation 4,350 4,668 4,630 2,688 1,361 Oil & Gas Exploration and Distr. 3 200 500 Shipping/Container Terminals 10 Total 4,350 4,671 4,840 3,198 1,871 Banking Sector wise Trends - Outstanding Finance (Rs. Millions) CategoryDec-12Dec-11Dec-10Dec-09Dec-08 Private616.8692.4695.0635.0350.0 Islamic2,979.63,182.63,177.11,744.81,011.0 DFIs753.2795.8967.7818.0510.0 Total4,3504,6714,8403,1981,871

9. P ROGRAM D ETAILS Group Photo: 11:00 (Near Lift Lobby Ground Floor ) Tea Break:11:15-11:30 Lunch +Prayer Break: 1:30 to 2:30 Evening Tea: 3:30 to 03:45

10. T HANK Y OU 10