Sale of NPCs begins

Updated 15 Sep, 2020

ISLAMABAD: The Ministry of Finance has announced that the sale of conventional Naya Pakistan Certificates (NPCs) has started from Monday through agent banks - Roshan Digital Account holders of the United Bank Limited (UBL), Habib Bank Limited (HBL), MCB Bank (MCB), Alfalah, Standard Chartered, and Samba Bank.

The Finance Ministry in a tweet stated that Shariah-compliant version was also coming very soon.

Meanwhile, a SRO was also issued by the Finance Ministry that read "in exercise of the powers conferred the Naya Pakistan Certificates Rules, 2020, the Finance Division notifies that the certificates in the currency specified in column shall be issued with responding minimum denomination currency of 5,000 US dollars and Rs100,000 for the period from three months up to five years."

The rate of return for three months has been fixed at 5.5 percent on maturity of 5,000 US dollars and 9.5 percent on Rs100,000, while on six months rate has been notified six percent and 10 percent on maturity of six months.

On maturity of one year, rate of return on dollar denomination of 5,000 has been notified at 6.5 percent, and rupee denomination of 100,000, 10 percent, while on maturity of three years, 6.75 percent per annum on semi annual basis has been notified on minimum denomination of dollar account, and 10.75 percent per annum on semi annual basis on rupee account and on maturity of five years, seven percent per annum on semi annual basis has been notified for minimum denomination of 5,000 US dollars and 11 percent on maturity of five years for Rs100,000.

As per Naya Pakistan Certificate rules, every non-resident Pakistani having National Identity Card for Overseas Pakistanis, foreigners having Pakistan Origin Card, members of Overseas Pakistanis Foundation, an employee or official of the federal government or a provincial government posted abroad who are eligible to open foreign currency value account or non-resident Pakistani Rupee Value Account as per the relevant regulations shall be eligible either individually or jointly to purchase the certificates.

In case the holder dies, the payment of principal amount and profit thereon, if any, shall be paid to the legal heirs of the deceased holder in accordance with a valid succession certificate or equivalent documentation issued in accordance with the law for the time being in force. The certificate will not be transferable, except if required under the relevant laws, the certificate would not be automatically reinvested or rolled over after maturity date and it will be pledge-able as security for raising financing in Pakistan subject to such conditions as may be prescribed by the State Bank of Pakistan (SBP).

Copyright Business Recorder, 2020

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