KARACHI, November 28, 2023 – The State Bank of Pakistan (SBP) has released a comprehensive procedure for expatriate Pakistanis interested in investing in ‘Pakistan Banao Certificates’ (PBC).
The guidelines, issued to facilitate overseas investors, cover various aspects from the certificate offering to periodic profit payments and premature encashment.
Certificate Offering and Subscription:
1. Web-Based Portal: The certificates, which are scripless, are accessible through a web-based portal: https://www.pakistanbanaocertificates.gov.pk.
2. Investor Portfolio Securities (IPS) Account: The National Bank of Pakistan (NBP) will open the IPS account for investors after verifying and screening their credentials. NBP will also handle services such as the collection of proceeds, distribution of periodic payments, and addressing investor queries.
3. Separate Account: Certificates will be issued through the Subsidiary General Ledger Account (SGLA) and placed in a separate account named the NBP PBC holding account.
4. Registration Process: Investors are required to electronically fill the registration form on the PBC Web Portal, providing necessary details such as e-mail ID, name, identity document details, address, contact number, and investment specifics.
Investment and Remittance of Funds to SBP Account:
1. Investment Limits: Investments can be made in US Dollars starting from $5,000 and in integral multiples of $1,000 with no upper limit.
2. Terms and Conditions Acceptance: Investors must accept the terms and conditions governing the certificates before submitting their investment requests.
3. Remittance Details: Upon submission of the investment request, a unique reference number will be sent to the investor’s registered e-mail address, along with details for remittance of funds to the SBP account maintained with NBP New York.
Certificate Issuance:
1. Verification and Screening: After verifying investor credentials and screening by NBP, scripless certificates will be issued.
2. Electronic Confirmation: Investors will receive electronic confirmation of their IPS account number and details of their investment in the certificates, including issue date, amount, maturity date, and certificate number.
Procedure of Periodic Payments:
1. Periodic Profit Payments: Profits will be paid in USD on a semi-annual basis, with a shut period observed five working days before the due date.
2. Premature Encashment: Investors have the option of premature encashment in either USD or PKR, subject to specified deductions.
3. Redemption at Maturity: Principal amounts in USD will be sent to the investor’s designated personal account on the maturity date. For redemption in PKR, an additional amount equal to one percent will be paid.
General Instructions:
1. Holiday Consideration: If a holiday falls on the profit or principal payment date, the next working day will be considered.
2. Change of Details: Investors wishing to change account details and mailing addresses may submit a request to NBP.
3. Subject to Change: The instructions are subject to change, as per SBP’s discretion.
The SBP encourages expatriate Pakistanis to consider these guidelines carefully, emphasizing compliance with necessary requirements and the importance of transparency in their financial transactions. The SBP also reserves the right to accept or reject investment applications that do not adhere to the outlined rules and instructions. Additionally, the instructions are subject to periodic revisions, and investors are advised to stay updated with any changes from the SBP or NBP.
