The federal government has taken a significant step towards enhancing theprofit rates offered by Naya Pakistan Certificates (NPCs), with adjustmentsof up to 6 percent across various holding periods. This decision, asreported by Topline Securities, entails a substantial revision in profitrates, ranging from 15 percent to a remarkable 21 percent in PKR terms. Thenew profit rates came into effect starting from September 1, 2023, markinga significant shift in the investment landscape.
These revisions in profit rates are primarily aimed at providing moreattractive returns to overseas Pakistanis and, concurrently, enticingforeign exchange inflows into the country through Roshan Digital Accounts(RDAs). The move seeks to capitalize on the potential of the expatriatecommunity and foreign investors, making the NPCs a compelling investmentoption for those looking to capitalize on Pakistan’s economic prospects.
To provide a comprehensive overview, the table below displays the revisedprofit rates for NPCs across different tenures. Notably, all tenures haveseen a uniform increase of 6 percent in profit rates, making thesegovernment-backed investment bonds even more appealing to potentialinvestors.
Moreover, in line with the evolving interest rates in the internationalmarket, the profit rates for government-guaranteed investment bonds havebeen elevated in terms of the Pakistani Rupee. However, it’s worth notingthat the rates of return in US Dollar terms exhibit a distinct pattern,with some tenures experiencing changes while others remain unchanged.
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According to data from the State Bank of Pakistan (SBP), the influx offunds through RDA accounts has surged to an impressive $6.487 billion. Thissurge is accompanied by a substantial increase in the number of accountsmaintained by expatriate Pakistanis, which has reached 596,268 accountsspanning 175 countries as of end-July 2023.
The data from the central bank further highlights the financial dynamics,indicating that funds totaling $1.474 billion have been repatriated as ofthe end of July, while $3.884 billion has been utilized locally.Consequently, the total repatriated and utilized amount stands at $5.359billion, with a net repatriable liability of $1.128 billion. This dataunderscores the significant impact of the enhanced profit rates on NPCs infacilitating the movement of funds, both inward and outward, contributingto the country’s economic stability and growth
