Islamabad September 19 2022: Government of Pakistan, Finance Division (External Finance Wing) has notified the revision in rate of return in PKR denominated Naya Pakistan Certificates (NPCs) and also revised downward the minimum denomination of NPCs in a bid to increase reserves.
The revisions will be applicable from 15th September 2022.
Rate on PKR denominated bonds is increased by 5.5 percent for three month, 5.25 percent for six months, 5.00 percent for 12 months, 3.25 percent for three years and 2.5 percent for five year securities.
Government of Pakistan has reduced the minimum investment amount for USD based certificate to USD 1,000 with integral multiple of 500 from minimum investment of USD 5,000 with integral multiples of USD 1,000.
Now the Naya Pakistan Certificates denominated in USD provides return of 5.5 percent for three month, 6.0 percent for six months, 6.5 percent for 12 months, 6.75 percent for three years and 7.0 percent for five year.
For PKR based certificates the minimum investment amount has been reduced to PKR 10,000 with integral multiples of PKR 1,000 from Minimum investment of PKR 100,000 with Integral multiples of PKR 10,000.
Now the Naya Pakistan Certificates denominated in PKR provides return of 15.0 percent for three month, 15.25 percent for six months, 15.50 percent for 12 months, 14.0 percent for three years and 13.5 percent for five year.
These measures will help to attract more investment in NPCs which will help to increase reserves of the country and provide strength to depreciating rupee. Overseas Pakistani’s has invested an amount of USD 3,185 million in Naya Pakistan Certificates till 30th August 2022, according to data published by State Bank of Pakistan. Central foreign exchange reserves for the week ending September 9, 2022, were decreased by USD 176 million to USD 8,624 million, which were not enough to cover imports of one and a half month.
Pakistan Rupee depreciates 1.07 or 0.45 percent in interbank to close at 237.91 against the dollar. Pakistan Rupee depreciates 8.12% or 19.31 in last twelve sessions. Pakistan currency hit low of 239.94 on 29th July 2022 on uncertainty of IMF program.
In open market, Dollar is trading at 244.3 against rupee at PST 16:45, lose value by 3.3 in today’s trading after remaining unchanged on Friday.
For investment in Great Britain Pound Investment limit has been set at 1,000 with integral multiples of 500 while for EURO the minimum investment limit is set at 1,000 with integral multiples of 500.
The GBP denominated Naya Pakistan Certificates provides return of 5.25 percent for three month, 5.5 percent for six months, 5.25 percent for 12 months, 5.5 percent for three years and 5.75 percent for five year.
Now the Naya Pakistan Certificates denominated in EURO provides return of 4.75 percent for three month, 5.0 percent for six months, 5.25 percent for 12 months, 5.5 percent for three years and 5.75 percent for five year.
Naya Pakistan Certificates (NPCs) are USD, PKR, Euro and British Pound-denominated sovereign instruments issued by the Government of Pakistan. NPCs offer attractive risk-adjusted returns over different maturities. They are available in both conventional and Shariah compliant versions and administered by the State Bank of Pakistan.
