SBP launches riyal, dirham Naya Pakistan Certificates
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
State Bank has announced it will issue Naya Pakistan Certificates in Saudi riyal and UAE dirham, but the returns are slightly lower than those for US dollar investments.
The central bank issued a circular on Monday stating that all banks have been informed that the Finance Division has notified that the NPCs will also be issued in Saudi Arabian Riyal (SAR) and UAE Dirham (AED).
The government has also notified the updated rates of return of the NPCs. The returns on SAR and AED are the same as they will get 6.50 per cent for three months, 6.75pc for 6 months and 7pc on 12 months. Returns on three-year and 5-year tenors are 7.25pc and 7.50pc, respectively.
Investments in NPCs in US dollars will get 6.75pc profit for 3 months, 7pc for 6 months and 7.25pc for 12 months. For three- and 5-year rates have been increased to 7.5pc and 7.75pc, respectively.
However, the highest returns are offered in Pak rupee with 11.75pc, 12pc and 12.25pc for 3, 6 and 12 months respectively. For three- and 5-year rates are 12.50pc and 12.75pc, respectively.
The lowest returns are being offered for Euro investment with 4.75pc, 5.25pc and 5.50pc for 3, 6 and 12 months respectively.
The NPCs have developed into the most attractive instrument for foreign investment in Pakistan. The latest data showed that since its launch in 2020, the total inflows under Roshan Digital Account, which includes NPCs, have reached $12.744 billion, with more than 62 per cent invested in NPCs.
The SBP data showed that out of these total inflows in RDA, about $8.15bn was locally used, while the net repatriable liability is just $2.44bn.
Reference Link:- https://www.dawn.com/news/2004569
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
