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Pakistani banks asked to increase number of independent board members

The State Bank of Pakistan asked banks and development finance institutions to increase the minimum number of independent directors to 33% of the total board size from 25%, effective March 31, 2018.

The requirement is part of the central bank's revised instructions for banks and development finance institutions. The central bank said Dec. 28 that it has also revised the definition of independent director in view of the domestic regulatory/legal regime and international best practices.

Among other instructions, the central bank said separate meetings for independent directors at each bank and development finance institution should be held at least once a year.