The Finance Division has issued Overseas Pakistani Savings Bills rules, and the bills will be issued in both Pak rupees and USD or any other currency as may be notified by the division from time to time.

The funds for investment in bills must be remitted from abroad as per prevailing regulations and processes: provided that funds remitted in the non-resident foreign currency accounts and the NRAR account of the investor after April 15, 2020, may be used for investment in the bills.

According to a notification of the Finance Ministry, "the rules would be applicable to the Overseas Pakistani Savings Bills purchased under these rules come into force at once and customer due diligence or CDD would have the same meaning as defined in prudential regulations issued by the State Bank of Pakistan (SBP) for commercial banks.

"Non-Resident Individual Pakistanis (NRIPs) having National Identity Card for Overseas Pakistanis, foreigners having Pakistan Origin Card, members of Overseas Pakistanis Foundation or an employee or official of the federal government or a provincial government posted abroad that are eligible to open foreign currency account and the NRAR (non-resident Rupee account "repatriable" as per existing regulations may either individually or jointly purchase the bill.

"Provided that in case of a minor, the parents or the legal guardian, operate all transactions on behalf of the minor until the age of 18 years at which time the minor should meet the criteria under these rules. Provided further that in case of a bill being purchased jointly, both joint- holders of the bill shall be required to meet the eligibility criteria set out in these rules.

"The bill would be issued in scrip-less form or any other form or format as approved by the Finance Division from time to time in consultation with the SBP.

"The bill would be in conventional form and also in Shariah compliant form as per Shariah structure notified by the Finance Division from time to time.

"The bill would be issued for three, six or 12 months or any other tenor as notified by the Finance Division from time to time and the minimum denomination of the bill and maximum investment limit thereof, shall be as announced by the Finance Division from time to time.

The bill would be issued through selected commercial banks, to be selected by the Central Directorate of National Savings (CDNS) in consultation with the SBP.

"The CDNS would issue or allocate inventory of scrip-less bill to agent banks for issuance to their foreign currency (FCY) or NRAR account holders.

"The agent banks would keep the bill inventory so received by the CDNS in the CDNS securities account to be opened with them and shall make arrangements to update the CDNS about the usage of the inventory and its reconciliation with CDNS.

"The agent banks would also open investment portfolio securities (IPS) accounts of the account holders purchasing the bill, and credit the bill in the IPS accounts.

"The know your customer (KYC), the CDD and the EDD of the purchasers of the bill, being the account holders of agent banks, would be the responsibility of the agent banks.

"The KYC, customer due diligence (CDD) and enhanced due diligence (EDD) requirements would however, be completed at the time of opening of the FCY or NRAR accounts.

"For purchasing a bill, the purchaser would fill an online application form to be available on the web-page of the agent banks.

"Provided further that residents' foreign currency accounts would not be used for investment in the bills.

Moreover, the Finance Division shall notify the rate of return on the bill and frequency of payment from time to time.

"Undrawn profit would not be eligible for compounding and profit payment would be made directly only to the account of the customer.

In case the holder dies, the payment of principal amount and profit thereon, if any, would 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.

"Irregular if any bill is found to be issued in contravention of these rules, such bill would be redeemed immediately, subject to adjustment of any benefit already paid.

"In case the profit is not claimed by the holder within six years from the date of accrual, the liability of the federal government, in respect of such profit payable, thereon would terminate.