Naya Pakistan Certificates profit rates significantly increased by government
The federal government has taken a significant step towards enhancing the profit rates offered by Naya Pakistan Certificates (NPCs), with adjustments of up to 6 percent across various holding periods. This decision, as reported by Topline Securities, entails a substantial revision in profit rates, ranging from 15 percent to a remarkable 21 percent in PKR terms. The new profit rates came into effect starting from September 1, 2023, marking a significant shift in the investment landscape.
These revisions in profit rates are primarily aimed at providing more attractive returns to overseas Pakistanis and, concurrently, enticing foreign exchange inflows into the country through Roshan Digital Accounts (RDAs). The move seeks to capitalize on the potential of the expatriate community and foreign investors, making the NPCs a compelling investment option for those looking to capitalize on Pakistan's economic prospects.
To provide a comprehensive overview, the table below displays the revised profit rates for NPCs across different tenures. Notably, all tenures have seen a uniform increase of 6 percent in profit rates, making these government-backed investment bonds even more appealing to potential investors.
Moreover, in line with the evolving interest rates in the international market, the profit rates for government-guaranteed investment bonds have been elevated in terms of the Pakistani Rupee. However, it's worth noting that the rates of return in US Dollar terms exhibit a distinct pattern, with some tenures experiencing changes while others remain unchanged.
According to data from the State Bank of Pakistan (SBP), the influx of funds through RDA accounts has surged to an impressive $6.487 billion. This surge is accompanied by a substantial increase in the number of accounts maintained by expatriate Pakistanis, which has reached 596,268 accounts spanning 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 of the end of July, while $3.884 billion has been utilized locally. Consequently, the total repatriated and utilized amount stands at $5.359 billion, with a net repatriable liability of $1.128 billion. This data underscores the significant impact of the enhanced profit rates on NPCs in facilitating the movement of funds, both inward and outward, contributing to the country's economic stability and growth