Islamabad: The government will launch the Pakistan Banao Certificate (PBC) initiative on January 31, according to Finance Minister Asad Umar.
PBC is a dollar-denominated diaspora bond. Through PBC, the government plans to increase its foreign reserves by tapping into the international savings of overseas Pakistanis.
The bond will be of two maturities: one of three years that will yield a return of about 6.25%, and the other of five years with a 6.75% return yield. The government has designated four banks to facilitate the transactions.
The government and the State Bank of Pakistan will jointly administer PBC. The federal cabinet previously approved the rules governing the certificates. As such, it is the first financial instrument/transaction of its kind that caters to overseas Pakistanis.
An official privy to the details of the development said that PBC will be an open-ended transaction. He added that its size will be determined by the response it receives from Pakistanis abroad.
Pakistanis in possession of valid CNICs and foreign accounts will be able to acquire the certificates. Those with national identity cards for overseas Pakistanis (NICOP), however, will be issued PBCs.
