Update (September 21, 2022)
State Bank of Pakistan Increases Profit Rate on Naya Pakistan Certificates
In a bid to encourage investment from the overseas community and raise more funds, the State Bank of Pakistan has increased the profit rate on rupee-denominated Naya Pakistan Certificates (NPC), according to the reports published by the leading dailies.
The revised rates will apply to all certificates invested through Roshan Digital Account.
Here are the latest return rates for NPC as approved by the central bank:
- For 3-month NPC, the rate is increased by 5.50% to 15%
- For 6-month NPC, the rate is increased by 5.25% at 15.25%
- For 12-months NPCs, the rate is increased by 5% to 15.50%
- For the 3-year NPCs, the rate is increased by 3.25% to 14%
- For the 5-year NPCs, the rate is increased by 2.50% to 13.50%
The change in the policy rate was announced following the growing pressure of the dollar against the rupee.
Update (May 4, 2021)
Roshan Digital Accounts Receive Inflow of $1 Billion
Roshan Digital Accounts (RDAs) received an inflow of $1bn, in over seven months, mostly via Naya Pakistan Certificates (NPCs). More than 100 countries have participated to open accounts, so far. Out of $1bn, NPCs attracted $645 million.
Following the success of Roshan Digital Accounts, the Government of Pakistan has introduced yet another attractive investment avenue for overseas Pakistanis. Naya Pakistan Certificates, also referred to as NPC, are saving US Dollars and Pakistani Rupee-denominated sovereign instruments offering profitable and risk-free returns over different maturities.
Here is everything you need to know about NPC, including its features, rates of return, frequently asked questions, and more.
What are Naya Pakistan Certificates?
Naya Pakistan Certificate is a fixed income saving certificate digitally issued by the Government of Pakistan. It can only be purchased through Roshan Digital Account for overseas Pakistanis. Presently, eligible resident and non-resident Pakistanis can avail this lucrative and secure investment opportunity through selected banks.
Administered by the State Bank of Pakistan, it is sovereign security available in both Shariah-compliant and conventional versions. Moreover, NPC is available in 3-month, 6-month, 12-month, 3-year and 5-year maturities. Also, as mentioned above, it is denominated in both US Dollars and Pakistani Rupees.
Who Can Invest in Naya Pakistan Certificates?
These certificates can be purchased by:
- Non-Resident Pakistanis
- Resident Pakistanis with declared foreign assets
Features of Naya Pakistan Certificates
These are the key features of Naya Pakistan Certificates for Roshan Digital Account holders.
NPCs are available in different maturities and carry varying profit rates as mentioned below
|Tenor||USD-Denominated NPC||PKR-Denominated NPC|
|3-month tenor||5.5% per annum||9.5% per annum|
|6-month tenor||6 % per annum||10% per annum|
|12-month tenor||6.5% per annum||10.5% per annum|
|3-year tenor||6.75% per annum||10.75% per annum|
|5-year tenor||7% per annum||11% per annum|
It is important to note that the profit on 3-month, 6-month and 12-month certificates will only be payable to the investors on maturity. However, the profit on 3-year and 5-year tenor certificates will be payable on a semi-annual basis.
No Tax Returns
Non-resident Pakistanis won’t be required to file tax returns on the income earned from NPCs. The profit will only be subject to a 10% withholding tax.
The government has issued both conventional and Shariah-compliant Naya Pakistan Certificates for overseas Pakistanis.
Naya Pakistan Certificates are fully repatriable, which means you don’t require any approvals for remitting funds abroad. Early encashment of these certificates is also allowed.
About Islamic Naya Pakistan Certificates (INPC)
Here are the Shariah-compliant Naya Pakistan Certificates details.
- The Islamic Naya Pakistan Certificates are based on a Mudaraba structure. Under this model, the investors put their money in the Mudaraba pool, which then extends financing to the federal government
- The investment in INPC is paid from the profits earned by this Mudaraba pool
- The Government of Pakistan has created INPC Company Limited (INPCCL) for this purpose
- INPCCL is owned by the federal government while it is housed and managed by the State Bank of Pakistan
- Separate Mudaraba pools are maintained for USD and PKR-denominated INPC
How to Invest in Naya Pakistan Certificates
Let’s take a look at how you can avail this incredible investment opportunity offered by the Government of Pakistan.
Step 1: Open a Roshan Digital Account
Select a partner bank and visit their official website to open a Roshan Digital Account. While overseas Pakistanis have the facility to open their accounts remotely through a secure digital channel, non-resident Pakistanis with declared assets abroad will have to visit their chosen bank branch.
To learn about the types of Roshan Digital Accounts and the required documents, please refer to our comprehensive list of FAQs about Roshan Digital Accounts.
Step 2: Transfer Funds
Once you have opened your Roshan Digital Account, you can easily remit funds through normal banking channels. The funds in this account can then be used to invest in Naya Pakistan Certificates.
Step 3: Select the Naya Pakistan Certificate
Select the currency, tenor, type of certificate and the amount you plan on investing. You can buy PKR-denominated NPC through PKR Roshan Digital Account, whereas the USD-denominated certificates have to be purchased from foreign-currency Roshan Digital Account at the exchange rate prevailing at the time of transaction.
You can digitally subscribe to NPC using the bank’s online portal.
FAQs about Naya Pakistan Certificates
These are some of the most frequently asked questions about Naya Pakistan Certificates.
Is there a minimum and maximum investment limit for Naya Pakistan Certificates?
For USD-denominated certificates, the minimum investment amount is USD 5,000 with integral multiples of USD 1000. On the other hand, the minimum investment amount for PKR-denominated certificates is PKR 100,000 with Integral multiples of PKR 10,000.
There is no maximum investment limit for these saving certificates.
Which banks are offering investment in Naya Pakistan Certificates?
The following banks are presently offering NPCs:
- Habib Bank Limited
- Muslim Commercial Bank Limited
- United Bank Limited
- Meezan Bank Limited
- Bank Al-Falah Limited
- Faysal Bank Limited
- Samba Bank Limited
- Standard Chartered Bank (Pakistan) Limited
Are Naya Pakistan Certificates subject to zakat deduction?
No, these certificates are exempt from zakat deduction.
Are Naya Pakistan Certificates transferable?
No, these certificates are non-transferable unless required by law.
Do investors need to visit Pakistan for the encashment of NPC?
No, the investors can both invest and redeem the certificates electronically through the web portals of the respective bank.
This brings an end to our guide on how to invest in Naya Pakistan Certificates. For more details and information, please refer to the aforementioned banks or visit the official site of the State Bank of Pakistan.
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Disclaimer: The information mentioned above has been extracted from the website of the State Bank of Pakistan and is therefore subject to change.