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Procedure for investment through Pound Sterling, Euro in NPC

KARACHI: State Bank of Pakistan (SBP) on Friday issued procedure for making investments in Naya Pakistan Certificate (NPC) through foreign currencies i.e. Pound Sterling (GBP) and Euro.

The SBP informed all agent banks that Government of Pakistan, Finance Division (External Finance Wing), vide Gazette notification S.R.O.211(I)/2021, dated February 18, 2021 had notified that the NPCs shall also be issued in Pound Sterling (GBP) and Euro in following maturities, carrying gross rate of return (before deduction of tax) as under:-

The minimum investment in both the currency shall be 5,000.

The rate of return in case of GBP is 5.25 percent, 5.5 percent, 5.75 percent, 6.25 percent and 6.5 percent for tenors 03-month, 06-month, 13-month, 03-year and 05-year, respectively.

The rate of return in case of Euro is 4.75 percent, 5 percent, 5.25 percent, 5.5 percent and 5.75 percent for tenors 03-month, 06-month, 13-month, 03-year and 05-year, respectively.

 The 3-Month, 6-Month and 12-Month tenor certificates shall be single-coupon securities on which principal and profit shall be paid on maturity or on premature encashment.

Whereas, 3-Year and 5-year certificates shall be coupon securities, on which periodic profit payment shall be paid on half-yearly basis.

The procedure for investment in Certificates, periodic coupon payment, pre-mature encashment and redemption at maturity as notified vide above referred Circular, shall also apply to the NPCs denominated in GBP and Euro. However, the agent banks shall remit the face value of the Certificates to the following nostro accounts of SBP maintained with United National Bank London (GBP) and NBP Frankfurt (Euro):-