Draft of Pakistan Banao Certificates Rules, 2018

SR0 1454(I)/2018: The following draft of Pakistan Banao Certificates Rules, 2018 proposed to be made by the Federal Government in exercise of the powers conferred by Section 28 of the Public Debt Act, 1944 (XVIII of 1944) is hereby published, as required under Sub-section (1) of the said Section, for the information of all persons likely to be affected thereby and notice is hereby given that the draft shall be taken into consideration after seven days of its publication in the official Gazette. Any objection or suggestion which may be received from any person in respect of the said draft, before the expiry of the aforesaid period, shall be taken into consideration by the Federal Government.
Draft Pakistan Banao Certificates Rules, 2018.
1. Short title, application and commencement. (1) These rules shall be called the Pakistan Banao Certificates Rules, 2018.
(2) They shall apply to the Pakistan Banao Certificates.
(3) They shall come into force at once.
2. Issuance of certificates. -(1) The Government of Pakistan shall through the State Bank of Pakistan issue the Pakistan Banao Certificates, hereinafter called the certificates.
(2) The certificates under sub-rule 2 (1) shall be offered through web based portal.
3. Denomination and limit.-The certificates shall be issued in US dollar five thousand and any integral multiples of US dollars one thousand in excess thereof with no upper limit on the investment amount.
4 Type of instrument. -The certificates shall be scripless and registered in the Subsidiary General Ledger Account maintained with the State Bank of Pakistan.
5. Maturity period.-The certificates shall be issued for three and five years from the date of issue.
6. Eligible investors.-The following investors shall be eligible to invest in the certificates either individually or jointly, namely:
(a) Pakistani individuals having Computerized National Identity Card (CNIC);
(b) Pakistani individuals having National Identity Card for Overseas Pakistanis (NICOP); and
(c) Holders of Pakistan (Origin Card (POC).
7. Source of funds.-The eligible investors shall purchase certificates against remittance, through official banking channels, from investors own account maintained abroad.
8. Rate of profit and payments.-(1) The rate of profit shall be five percent per annum for three years certificates and five and half percent per annum for five years certificates.
(2) The profit payments shall be paid in US dollar on semi-annual basis in the investor's nominated US dollar account maintained in country of residence or in Pakistan:
Provided that no profit shall be payable if the encashment is made before the due date of the six monthly profit payment, whereas no profit shall be paid for holding the certificates beyond the maturity period.
9. Encashment.-(1) The premature encashment of certificates in Pak Rupee shall be allowed anytime.
(2) Premature encashment is US dollar shall be allowed after one year.
In case of premature encashment is US dollars before lapse of one year, a deduction of one percent shall be made.
10. Redemption: Redemption of principal payment shall be made in US dollars in the investor's nominated US dollar account maintained in country of residence or in Pakistan:
Provided that, in case an investor opts for redemption of principal payment in PKR at maturity, an additional amount equal to one percent shall be paid with the last six monthly profit payment. Redemption in PKR shall be made, at prevailing interbank PKR-US dollar exchange rate, in the investor's designated PKR account maintained with a bank in Pakistan.
11 TaxProfit payment in respect of the certificates shall be exempt from the deduction of withholding tax.
12. Zakat.-There shall be no compulsory deduction of zakat on the certificates as per requirements.
13 Operational instructions: The State Bank of Pakistan may in respect of the certificates issue operational instructions to investors on issuance, profit payments, redemption, transmission and matters ancillary thereto.