KARACHI - It has been decided to reformulate policy for opening of overseas branches and issue a new policy for establishment of a subsidiary banking company outside Pakistan. Through a circular issued on Friday SBP said the policy enclosed herewith contains instructions relating to: (a) opening / shifting / closing / performance monitoring of overseas offices and establishment of subsidiary banking company outside Pakistan. SBP stated that in view of the importance of overseas operations in branch / subsidiary mode, it has also been decided to include (a) Head of overseas operations of a bank at head office level, (b) Country Head/Regional Head (where a region is consisting of more than one foreign countries), (c) CEO/Head of subsidiary banking company outside Pakistan and (d) CEO of Joint Venture (where majority stake is with the bank incorporated in Pakistan and authority to appoint CEO) in the category of 'Key Executives' for assessment of their 'fitness and propriety' under BPRD Circular No.4 dated April 23, 2007. Accordingly, such appointments will be made in accordance with 'Fit and Proper Test' as prescribed in the above referred circular and other instructions issued from time to time. Banks / Islamic banks will, however, seek State Bank's prior approval for such overseas appointments in the future. Regarding existing heads of such overseas operations, banks are advised to seek State Bank's approval regarding their 'fitness and propriety' within two months from the date of issuance of this circular. This circular supersedes instructions as given in section 5.1 of Branch Licensing Policy issued vide BPRD Circular No.15 dated October 12, 2007. Henceforth Banks/Islamic Banks/DFIs are advised to ensure strict compliance with these instructions.