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MoF notifies rules for issuance of Naya Pakistan Certificates for overseas, resident Pakistanis

MoF notifies rules for issuance of Naya Pakistan Certificates for overseas, resident Pakistanis

ISLAMABAD: The ministry of finance has notified rules for issuance of Naya Pakistan Certificates (NPC) at for overseas Pakistanis at an attractive rate of return against dollar denomination bills.

According to the rules, every non-resident Pakistani having national identity card for overseas Pakistanis, foreigners having Pakistan origin card, members of overseas Pakistanis foundation, an employee or official of the federal government or a provincial government posted abroad who are eligible to open FCVA or NRVA as per the relevant regulations shall be eligible either individually or jointly to purchase the certificates.

The certificates are also available for resident Pakistanis having assets abroad, duly declared in latest tax return filed with the Federal Board of Revenue, may also invest in the certificate through their FCVA in Pakistan subject to such controls, conditions and operational procedure as may be notified by the State Bank of Pakistan under these rules.

The details obtained from SBP website revealed that the investors shall only pay 10 percent withholding tax, which will be final tax liability. Further, investors will also not be required to file income tax return for their investment.

Naya Pakistan Certificate which will be offered to both residents and overseas Pakistanis at annualized return up to 11 percent in rupee and up to 7 percent in dollar denomination bills.

The SBP said that Naya Pakistan Certificates are sovereign instruments being issued by the government for overseas Pakistanis as well as resident Pakistanis who have declared assets abroad.

The bills will be available at 3-, 6- and 12-month and 3- and 5-year tenors. The government will allow early enacashment.

According to the SBP, the certificates are available at very attractive and risk-free returns. In dollar denomination bills the return shall be at 5.5 percent, 6 percent and 6.5 percent for 3-, 6- and 12-month tenors. While for 3- and 5-year bills will attract 6.75 percent and 7 percent.

The rupee denomination bills shall be available at 9.5 percent, 10 percent and 10.5 percent for 3-, 6- and 12 months tenor. While, the certificates of 3- and 5-year tenors certificate shall attract 10.75 percent and 11 percent, respectively.

Pakistani tax authorities will not ask the source of investment to be made in these certificates. However, 10 percent withholding tax shall be applicable and it will be final tax liability. Further, investors will not be asked to file income tax return.

The SBP said that the certificates are fully repatriable and no approvals will be required for remitting funds abroad.