The government has introduced Shariah-compliant regulations to enableresident and non-resident Pakistanis to invest in foreign currenciesthrough Islamic Naya Pakistan Certificates (INPCs) that will build up theforeign exchange reserves, and support the economy of Pakistan.
According to the regulations:
The non-resident Pakistanis, who have an account at a local bank under therecently launched Roshan Digital Account (RDA) initiative, and residentPakistanis, who have declared assets abroad with the Federal Board ofRevenue (FBR), are eligible to invest in the three-month to five-year-longShariah-compliant saving certificates – Islamic Naya Pakistan Certificates(INPCs) – both in foreign currencies (mainly in US dollar) and localrupee-denominations.
Eight banks are determined to formally launch the Islamic savingcertificates in foreign and local currencies for resident and non-residentPakistanis after the government introduced INPC regulations earlier thisweek.
These banks are:
1. Habib Bank Limited 2. MCB Bank 3. Meezan Bank 4. Faysal Bank 5. Standard Chartered Bank 6. Bank Alfalah 7. Samba Bank 8. United Bank Limited
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These eight banks would establish two Shariah-compliant assets (Mudarabapools) worth $20 million and Rs. 5 billion. Later on, resident andnon-resident Pakistanis would become part of the assets by investing in thesaving certificates and the banks would quit, while receipts fromPakistanis would only be provided to the federal government, according tothe regulations.Profit Rates of Islamic Naya Pakistan Certificates (NPCs)
Investors will be offered a return on investment at the rate close to theattractive ones being offered on conventional Naya Pakistan Certificates(NPCs). On the investment in foreign currencies in NPC, the government isoffering an annualized return of 5.5% on the three-month certificate, 6% onthe six-month certificate, 6.5% on a 12-month, 6.75% on three-year, and 7%on the five-year saving certificate.
In local rupee-terma, the government is offering an annualized return of9.5% on the three-month certificate, 10% on a six-month certificate, 10.5%on 12-month, 10.75% on three-year, and 11% on the five-year savingcertificate.
