NPCs: Rate of return again revised upward to attract more investment

KARACHI: The federal government has revised the rate of return on the conventional Naya Pakistan Certificates (NPCs) upward to attract more investment.

This is the second increase in the rate of return of the NPC during this calendar year as previously, the rate was revised upward in January. Following the directives of the federal government, the State Bank of Pakistan (SBP) on Thursday notified an increase in the profit for Conventional NPCs with effect from Sep 1, 2023.

Accordingly, on a minimum investment of $1,000 with integral multiples of 500, 3-month rate of return (gross annual return before tax) increased to 8.25 percent up from 7 percent and for 6-month 8.5 percent from 7.2 percent, 12-month profit sets at 9 percent compared to 7.5 percent was being paid previously. Profit rate for 3-year and 5-year will be stable at 8 percent.

SBP notifies increased rates of return on NPC

On an investment of Rs 10,000 with integral multiples of 1,000, rate of return (gross annual return before tax) for 3-month rose to 21 percent, 21.25 percent for 6-month, 21.50 percent for one year, 17.5 percent for 3-year and 15 percent for 5-year.

On an investment of 1,000 GBP with integral multiples of 500, rate of return will be 7.25 percent for 3-month, 7.5 percent for 6-month, 8 percent for 12-month. The rate of return for 3-year and 5-year NPC is unchanged at 7.50 percent.

In terms of euros amounting to 1,000 with integral multiples of 500 investment, the rate of return surged to 6.25 percent for 3-month, 6.50 percent for 6-month, 7 percent for one year. However, the rate of return on 3-year and 5-year investment will remain stable at 6.5 percent.

According to SBP Government of Pakistan, Finance Division (External Finance Wing), vide Gazette notifications No. S.R.O. 1191(I)/2023 dated August 31, 2023, has already notified the revision in rate of return in NPCs.

Copyright Business Recorder, 2023