Naya Pakistan Certificates: rate of return revised upward

KARACHI: The State Bank of Pakistan (SBP) has increased the rate of return for investment in PKR-denominated Naya Pakistan Certificates (NPCs).

The Government of Pakistan, Finance Division (External Finance Wing), has notified the revision in rate of return in PKR-denominated NPCs and also revised downward the minimum denomination of NPCs.

According to a notification, the PKR denominated conventional NPCs rate has been increased up to 550 basis points (bps); however, the rate of return on US dollar-dominated Certificates has remained unchanged.

The rate of return (Gross annual return before tax) on 3-Month PKR-dominated NPCs, with minimum investment of 10,000 with integral multiples of 1,000, has been increased from 9.50 percent to 15 percent, up by 5.5 percent, the rate of return on 6-Month PKR-dominated certificates rose by 5.25 percent to 15.25 percent, up from 10 percent.

In addition, the rate of return on 12-Month PKR-dominated NPCs surged by 5 percent to 15.50 percent, 3-year certificates rate of return mounted up from 10.75 percent to 14 percent and rate of return on 5-year NPCs increased by 2.5 percent to 13.5 percent up from 11 percent.

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The rate of return (Gross annual return before tax) on 3-Month US dollar NPCs, with minimum investment of 1,000 with integral multiples of 500, will be remained 5.5 percent, 6 percent rate of return for 6-Month, 6.5 percent rate for 12-Month tenor certificates, 6.75 percent profit for 3-year NPCs and 7.0 percent for 5-year certificates.

The rate of return on 3-Month GBP dominated NPCs with minimum investment of 1,000 with integral multiples of 500 will be 5.25 percent, 5.5 percent profit for 6-Month, 5.75 percent for 12-Month tenor certificates, 6.25 percent for 3-year NPCs and 6.50 percent for 5-year certificates.

In addition, the rate of return on 3-Month Euro dominated NPCs with minimum investment of 1,000 with integral multiples of 500 will 4.75 percent, 5 percent for 6-Month, 2.25 percent for 12-Month tenor certificates, 5.5 percent for 3-year NPCs and 5.75 percent for 5-year NPCs. According to SBP, the new revised rates will be in force from 15th September, 2022.

Copyright Business Recorder, 2022