AGL 6.80 Increased By ▲ 0.08 (1.19%)
ANL 9.22 Decreased By ▼ -0.53 (-5.44%)
AVN 74.20 Decreased By ▼ -1.30 (-1.72%)
BOP 5.43 Decreased By ▼ -0.01 (-0.18%)
CNERGY 4.89 Decreased By ▼ -0.06 (-1.21%)
EFERT 78.00 Decreased By ▼ -0.05 (-0.06%)
EPCL 54.70 Decreased By ▼ -0.70 (-1.26%)
FCCL 14.93 Decreased By ▼ -0.37 (-2.42%)
FFL 6.34 Decreased By ▼ -0.14 (-2.16%)
FLYNG 7.12 Decreased By ▼ -0.03 (-0.42%)
GGGL 10.56 Increased By ▲ 0.01 (0.09%)
GGL 16.43 Decreased By ▼ -0.12 (-0.73%)
GTECH 8.21 Decreased By ▼ -0.21 (-2.49%)
HUMNL 6.35 Decreased By ▼ -0.06 (-0.94%)
KEL 2.95 Decreased By ▼ -0.04 (-1.34%)
LOTCHEM 28.60 Decreased By ▼ -0.25 (-0.87%)
MLCF 27.80 Decreased By ▼ -0.50 (-1.77%)
OGDC 75.30 Decreased By ▼ -0.20 (-0.26%)
PAEL 15.80 Increased By ▲ 0.26 (1.67%)
PIBTL 5.60 Increased By ▲ 0.24 (4.48%)
PRL 17.22 Decreased By ▼ -0.10 (-0.58%)
SILK 1.06 Increased By ▲ 0.01 (0.95%)
TELE 10.30 Decreased By ▼ -0.20 (-1.9%)
TPL 8.00 No Change ▼ 0.00 (0%)
TPLP 20.80 No Change ▼ 0.00 (0%)
TREET 22.60 Decreased By ▼ -0.40 (-1.74%)
TRG 128.85 Increased By ▲ 6.15 (5.01%)
UNITY 22.50 Decreased By ▼ -0.08 (-0.35%)
WAVES 12.00 Increased By ▲ 0.70 (6.19%)
WTL 1.13 Decreased By ▼ -0.01 (-0.88%)
BR100 4,100 Decreased By -4 (-0.1%)
BR30 15,533 Increased By 64.6 (0.42%)
KSE100 41,129 Increased By 114.8 (0.28%)
KSE30 15,337 Increased By 24.6 (0.16%)
Business & Finance

SBP allows NRPs to contribute to pension funds

  • Some amendments have been made in instructions regarding NRP Rupee Value Account for contribution in units of Authorized Pension Funds
Published August 9, 2022
Follow us

KARACHI: The State Bank of Pakistan (SBP) has allowed Non-Resident Pakistanis (NRP) to contribute in pension funds, authorised by the Securities and Exchange Commission of Pakistan (SECP) under Voluntary Pension Funds Rules 2005 (VPS Rules).

Accordingly, some amendments have been made in instructions regarding NRP Rupee Value Account (NRVA) for contribution in units of Authorized Pension Funds by the NRPs.

“In order to improve the value proposition of NRVA and facilitate the NRPs, it has been decided to allow NRPs to contribute in pension funds, authorized by SECP through their Authorized Dealers” a circular issued by SBP said.

Accordingly, some amendments in Foreign Exchange Regulations have been made by the SBP.

As per amendments, NRVA holders are allowed to contribute in pension funds, authorized in terms of Voluntary Pension Funds Rules 2005, under the management of Pension Fund Managers (PFMs) registered with SECP, through NRVA opened with an Authorized Dealer (AD) in Pakistan.

As per procedure, funds available in NRVA can be used for contribution in pension funds and payment for such contribution may be debited from the account on the specific request of the NRVA holder for onward credit to the bank account of the trustee of the pension fund.

Business entities incorporated abroad: SBP introduces two separate categories of forex, PKR accounts

The Net Asset Value (NAV) allocated with respect to each contribution along with a copy of payment instrument/ details will be provided by the PFM to the AD on the same day. PFM shall also send account statements to the AD within 24 hours of the realization of funds.

In case of transfer of the individual pension account of the NRVA holder from one pension fund to another pension fund of the same PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one pension fund to another fund) for their record of AD.

In case of transfer of the individual pension account of the NRVA holder from one PFM to another PFM, the PFM will share the details of the transfer transaction (including all details as reported for transfer from one PFM to another PFM) for record of AD.

Redemption proceeds may be credited to respective NRVA, received from the trustee of pension fund on account of redemption of units earlier contributed by participants through these accounts or bonus units issued thereon. The details of the same will be shared by the Trustee of pension fund/ PFM with the AD.

The AD will ensure that all issuance and redemptions are taking place at prevalent NAV announced publicly by the relevant PFM.

The AD will maintain complete reconciliation of amount transferred/ received to/ from trustee of pension fund, units contributed/ redeemed by the participant there-against, and ensure the compliance of all related foreign exchange regulations.

The SBP has advised the banks to bring the above instructions to the notice of all their constituents for meticulous compliance.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Tariq Aug 09, 2022 04:46am
So you want the money but hate their opinions
thumb_up Recommended (0)