Islamabad: The government has notified the Naya Pakistan Certificate Rules to replace the Pakistan Banao Certificate (PBC) Rules 2018 and the PBC Rules 2020, a news source reported on September 10. This new set of provisions is expected to govern the issuance of the Naya Pakistan Certificates (NPCs) – to be issued in return for foreign and local currencies to non-resident Pakistanis as well as Pakistan Origin Card holders.
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The NPCs will further replace the existing short-term Overseas Pakistanis Savings Bills and the long-term Pakistan Banao Certificates.
The primary purpose of the Naya Pakistan Certificates is to attract investment from the Pakistani diaspora through a wide spectrum of investment options, in addition to boosting Pakistan’s foreign exchange reserves. These certificates will offer both short-term and long-term investment options and will be made available to:
- Non-resident Pakistanis having National Identity Card for Overseas Pakistanis (NICOP)
- Foreigners with Pakistan Origin Card
- Members of Overseas Pakistanis Foundation
- Government employees posted abroad
- Resident Pakistanis with declared assets abroad
Read: Pakistan Banao Certificate launched, details shared
Meanwhile, the Naya Pakistan Certificate Rules 2020 would regulate the investments in the certificates. Their salient features are listed below:
- Both conventional and shariah-compliant certificates will be issued
- These certificates will be issued for a period of 3, 6, 12, 36 or 60 months
- The certificates will either be in USD, PKR or other currency denominations notified by the Finance Division
- Finance Division will also decide minimum denomination and maximum investment from time to time
- Issuance of Naya Pakistan Certificates will be scripless
- The certificates will be issued through commercial banks selected by the Finance Division in consultation with the State Bank of Pakistan
- The issuing bank will perform due diligence for the purchaser
- The investment funds will be remitted from abroad in the Foreign Currency Value Account (FCVA) or Non-Resident Pakistan Rupee Value Account (NRVA)
- Finance Division will announce rate of return and frequency of payment from time to time
- Payments will made directly to investor’s account or their legal heir, in case of death.
- Naya Pakistan Certificate Rules designate that these certificates will be non-transferable
- The certificates will not be automatically reinvested or rolled over on maturity
- The certificates will be pledgeable as securities for raising financing in Pakistan
- The Naya Pakistan Certificate Rules allow for premature encashment, however, in case of premature encashment, the rate of return will also be changed to that of the certificate with the nearest shorter tenor certificate. There will be no profit in case of encashment before 3 months.
- The profits on NPCs will be subject to tax deductions but no compulsory zakat deductions would be made