ISLAMABAD-The sale of Conventional Naya Pakistan Certificates (NPCs) began on Monday through agent banks amid to attract investments from overseas Pakistanis to boost foreign exchange reserves.

In a tweet, the Ministry of finance said, Roshan Digital Account holders of UBL, HBL, MCB, Alfalah, Standard Chartered and Samba Bank can subscribe to NPCs by visiting NPC page of their respective bank. 

The ministry added that Shariah-compliant version is also coming very soon. In last week, Prime Minister Imran Khan had inaugurated the ‘Roshan Digital Account’, an initiative which will facilitate millions of overseas Pakistanis to undertake fund transfers, bill payments and investment activities in the country.

The Roshan Digital Account is a major initiative by the State Bank of Pakistan (SBP), together with eight other commercial banks operating in the country. These banks will provide innovative banking solutions for millions of non-resident Pakistanis (NRPs) and for the first time in Pakistan’s history, they will be able to open an account in any bank through an entirely digital and online process, without having to visit any bank, embassy or consulate. To open an account, all documentation requirements will need to be completed. Once complete, it will take 48 hours to open the account. The customer can choose whether to open a rupee dominated account, foreign currency or both and funds in the account will be fully repatriable, without the need for any regulatory approval.

According to the SBP, the certificates would be offered digitally through the web-links of eight agent banks. 

The investors would have the option to subscribe either rupee/dollar denominated certificates of 3, 6, 12-month, 3-year, and 5-year tenors. The investors would be eligible to make minimum investment of $5,000 with integral multiples of $ 1,000 in dollar denominated certificates. For the PKR denominated certificates, the amount will be Rs100,000 with Integral multiples of Rs10,000.

These debt certificates would offer 5 to 7 per cent returns on different tenors of the rupee-denominated certificates. 

The yields on the dollar-denominated certificates would be 9-11 per cent.

“The 3-Month, 6-Month and 12-Month tenor certificates shall be single-coupon securities on which principal and profit shall be paid on maturity or on pre-mature encashment. Whereas, 3-year and 5-year certificates shall be coupon securities, on which periodic profit payment shall be paid on a half-yearly basis,” it said.

The periodic coupon payments would be made on six-monthly basis only in respect of certificates of 3-year and 5-year maturities in their respective currencies, according to the SBP.

The investors can have premature encashment of their certificates. 

Premature encashment proceeds would be worked out such that rate of return accruing to that investor is equivalent to rate of return of the nearest shorter maturity of certificates or such rate as may be notified by the finance division from time to time. However, the central bank cleared that no profit will be paid in case of encashment of certificates before completion of three months.