The federal government has made substantial increases to the
returns on conventional Naya Pakistan Certificates (NPCs) in a bid to stimulate
investment. This rate adjustment represents the second modification this year,
following a previous update in January.
The State Bank of Pakistan (SBP) has implemented these changes
in line with government directives, and the new rates came into effect on
September 1, 2023.
The updated rates for Conventional NPCs are as follows:
For a minimum investment of $1,000, with additional multiples of
$500, the 3-month rate of return (gross annual return before tax) has risen
from 7 percent to 8.25 percent. The 6-month rate has been adjusted to 8.5
percent, compared to the previous 7.2 percent. For a 12-month investment, the profit
rate now stands at 9 percent, compared to the prior rate of 7.5 percent. The
profit rates for 3-year and 5-year investments remain unchanged at 8 percent.
For investors using Pakistani Rupees (PKR), a minimum investment
of Rs 10,000, with additional multiples of Rs 1,000, yields a 3-month rate of
21 percent, a 6-month rate of 21.25 percent, a one-year rate of 21.50 percent,
and a rate of return of 17.5 percent for 3-year and 15 percent for 5-year
commitments.
For investors considering British Pounds (GBP), an investment of
£1,000, with additional multiples of £500, promises enticing returns. The
3-month rate of return has surged to 7.25 percent, while the 6-month rate
stands at 7.5 percent. For a 12-month commitment, investors can expect an 8
percent return. The rates for 3-year and 5-year NPCs remain unchanged at 7.50
percent.
For Euro investors, an investment of €1,000, with additional
multiples of €500, now offers a 6.25 percent return for the 3-month option, an
enticing 6.50 percent for the 6-month, and 7 percent for the 12-month. The
rates for 3-year and 5-year investments remain stable at 6.5 percent.
According to the SBP, these adjusted NPC rates have already been
communicated through Gazette notifications No. S.R.O. 1191(I)/2023 dated August
31, 2023. These modifications reflect Pakistan's ongoing endeavors to attract
investment while providing a secure and competitive investment option for both
local and international investors.
Source: Profit Pakistan