KARACHI - The State Bank of Pakistan (SBP) has decided to raise the Statutory Liquidity Requirement (SLR) for Islamic Banks/ Islamic Banking Branches to 14 per cent effective from April 01, 2011. The SBP has taken this decision while exercising the powers conferred upon it under section 36 of the State Bank of Pakistan Act, 1956, and section 29 of the Banking companies Ordinance, 1962. In a circular, issued on Wednesday, the central bank informed the Presidents and Chief Executive Officers of all Islamic Banks / Islamic Banking Branches that 14 per cent SLR will be excluding Cash Reserve Requirement (CRR) of total demand liabilities plus time deposits with tenors of less than 1 year. However, the time liabilities, including time deposits with a 1-year tenor and above, will not require any SLR, the circular said. According to Circulars No. 26 of October 17, 2008 and No. 13 of June 09, 2008 on the captioned subject, SLR can be maintained in the form of cash in hand, balance with NBP in current account, balance with SBP in current account and Un-encumbered Approved Securities as notified by SBP from time to time. For SLR purpose, all holdings of GOP Ijara Sukuk (GIS) will be fully counted. Moreover, holdings of 'SBP approved SLR eligible 'Public Sector Sukuks will be counted up to 7 per cent of total time and demand liabilities. However, single issuer holding limit of 5 per cent of total time and demand liabilities stands abolished. This will also be effective from April 01, 2011. All other instructions on the subject will remain unchanged, the circular added.