The federal government has decided to increase the Naya Pakistan Certificates’ (NPCs’) profit rates by up to 6% depending on the holding period.
Data provided by Topline Securities indicates that the profit rates on the certificate have been increased by between 15% and as much as 21% in PKR. Beginning on September 1, 2023, these changes will be in force.
Another positive and right step to attract foreign inflows in Pakistan. The rates on Naya Pakistan Certificates (NPC) have been increased in a range of 1.25-1.50% in dollar and 1.5-6.0% in PKR. These revisions will be in effect from September 01, 2023. #SBP #NayaPakistan pic.twitter.com/7Mmj8yREGN
— Topline Securities (@toplinesec) September 15, 2023
To offer overseas Pakistanis lucrative rates of return and entice foreign currency inflows through Roshan Digital Accounts (RDAs), the profit rates have been raised.
For various tenures, the following table displays revised profit rates:
|Tenure||Old Rates PKR (%)||New Rates PKR (%)||Changes (%)|
In line with rising interest rates on the international market, the profit rates on government-guaranteed investment bonds have been raised in rupee terms. The following are the rates of return expressed in US dollars:
|Tenure||Old Rates US Dollar (%)||New Rates US Dollar (%)||Changes (%)|
|3 years||8||8||no change|
|5 years||8||8||no change|
According to SBP data, the total amount of inflows through RDA accounts increased to $6.487 billion. By the end of July 2023, there were also 596,268 Pakistanis living abroad who kept accounts across 175 different nations.
Until the end of July, $1.474 billion in funds had been repatriated, with $3.884 billion being used locally, according to data from the central bank. With a net repatriable liability of $1.128 billion, the total amount that has been repatriated and used is $5.359 billion.
Total net investments made through RDA from September 2020 to July 2023 came to $731 million. The amounts for NPC Investments (Conventional) and NPC Investments (Islamic) were $319 million and $390 million, respectively. The amount for Roshan Equity Investments was $21 million. With Other Liabilities coming in at $20 million, the Balances in Accounts were reported to be $377 million.
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