KARACHI: The State Bank of Pakistan (SBP) has allowed resident Pakistanis, having assets abroad, to invest in USD denominated Naya Pakistan Certificates (NPCs) by opening a Foreign Currency Value Account.
SBP had already introduced a separate category of foreign currency account titled 'Foreign Currency Value Account' (FCVA) aimed to facilitate the non-resident Pakistanis as well as resident Pakistanis, who have assets abroad duly declared with Federal Board of Revenue (FBR), for investment in foreign currency denominated government registered debt securities.
Now, the SBP has announced the criteria for resident Pakistanis for investment in USD-denominated Naya Pakistan Certificates.
On Tuesday, in exercise of power conferred by sub-rule 2 of Rule 3 of the Naya Pakistan Certificate Rules, 2020, the State Bank has notified that resident Pakistanis having assets abroad as declared in their latest wealth statement filed with the Federal Board of Revenue (FBR) may invest in USD denominated NPCs by opening a Foreign Currency Value Account, subject to the some conditions. As per condition, investment in NPCs by Resident Pakistanis must be funded by remittance from abroad.
In addition, at the time of opening the FCVA, resident Pakistanis will be required to present their latest wealth statement filed with FBR or a signed affidavit stating the value of their assets held abroad as declared in their latest wealth statement filed with FBR.
According to SBP, total investment (including the NPCs) of resident Pakistan through FCVA will not exceed the value of assets abroad declared in the wealth statement plus such accretion, as may be attributable to interest and profit thereon and/or gain on disposal thereof, in respect of which adequate evidence is provided in the form of bank statement, profit/ coupon and/or sale deed respectively.
SBP has said the agent banks while processing the investment requests in NPC or other permissible avenues by resident Pakistanis who have opened an FCVA with them shall ensure compliance with these conditions. The rest of the process for investment in NPC will be the same as prescribed previously.
It may be mentioned here that as per SOPs for investment in conventional NPC, the certificates will be subscribed by eligible individuals through FCVA or NRP Rupee Value Account (NRVA), being marketed as Roshan Digital Accounts (RDAs) by the agent banks.
The funds for investment in Certificates must be remitted from abroad in the investor's FCVA or NRVA after 30th day of June, 2020.
Copyright Business Recorder, 2020