Govt establishes special purpose vehicle to issue Islamic Naya Pakistan Certificates

The government has established a wholly-owned special purpose vehicle, namely Islamic NPC Company Limited (INPCCL), which shall be issuing Islamic Naya Pakistan Certificates (INPCs) denominated in USD and PKR to the agent banks and investors.

The State Bank of Pakistan (SBP) informed that the company shall be managed under the mandate of its Board of Directors (BoDs).

For the purpose of issuing USD and PKR denominated INPCs, the INPCCL shall establish two Mudaraba pools in the above-referred currencies. The agent banks shall make initial investment aggregating USD 20 million and PKR 5,000 million in respective pools by subscribing special INPCs reserved for agent banks, informed the central bank.

The fund by INPCCL in each pool shall be used for extending Shariah-compliant financing to the federal government. The agent banks' investment will be of transitory nature liable to be retired or withdrawn on receipt of investments from the individual investor(s).

Similarly, the agent banks shall be responsible to make available liquidity to the Mudaraba pools in the event of redemption or premature withdrawal of funds by investors, by re-subscribing the special INPCs reserved for agent banks.

SBP said that INPCCL shall enter into Agency Agreement with Agents Bank for sale of INPCs to their clients maintaining Roshan Digital Accounts with them. INPCCL shall also communicate the expected rates, Profit Sharing Ratio (PSR) and weights applicable to different tenors and categories of INPCs and Agent Banks’ investment in the USD and PKR pools to be maintained by INPCCL for the issuance of INPCs.

Agent banks shall also disclose on their web-page the PSR and weights for each tenor of INPCs at the beginning of each month.