Pakistan Banao Certificate targeting overseas Pakistani’s to be launched on 31st January

According to details shared by the Finance Minister Asad Umar, the certificates would be of two types, one of three years offering 6.25% return and the other with five-year maturity offering 6.75% return

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ISLAMABAD: The much-awaited dollar-denominated diaspora bond named Pakistan Banao Certificate (PBC) is going to be launched by the government on January 31st.

The diaspora bond is being launched to take advantage of international savings of overseas Pakistani’s and bolstering its foreign exchange reserves, reports Dawn.

According to details shared by the Finance Minister Asad Umar, the certificates would be of two types, one of three years offering 6.25% return and the other with five-year maturity offering 6.75% return.

Mr Umar said four banks had been selected to complete the transactions.

Also, another official stated the PBC would be launched globally by the government in conjunction with the State Bank of Pakistan (SBP).

And the rules and regulations pertaining to the PBCs were given go-ahead by the federal cabinet on Thursday and it will be the first ever transaction of its kind to be targeting overseas Pakistani’s only.

The official further shared that it will be an open-ended transaction and its size would be contingent on the reaction from overseas Pakistani’s.

He highlighted the transaction would help enhance foreign exchange reserves, however, Pakistan’s balance of payments requirements for the ongoing year have already been secured.

Moreover, the official was buoyant that Pakistan will not require go for any other global capital market transaction this year when queried about the $2.5-3 billion Eurobond or Islamic Sukuk raising budgeted for this year.

According to another official, the global capital markets require a recommendation from the International Monetary Fund (IMF), which was ambiguous at this juncture and thus the transaction would be expensive.

10 COMMENTS

  1. Bring it to me for the system testing and Quality Assurance validate, if that’s all requires, after all, I am MCQI member and QA Director. Happy to support anytime…

  2. Feel free to ask for any system testing and Quality Assurance validation, happy to support as required. After all, I am MCQI member and QA Director.

  3. A question arises in the minds of several overseas Pakistanis about the way to keep their foreign exchange savings in the designated Pakistani Banks with an interest free account, but with smooth, secure, and guaranteed way to transfer these funds (partly or fully) back to abroad whenever needed. This way, millions of dollars of foreign exchange could easily be mobilized.

  4. Gaining confidence is very important, it should from Government actions only. A lot of money invested in Bahria town Karachi by over seas, now the court is not able to solve the problem it should settle down fast.
    Than only economy will move. Finance ministry can check million were transferring to Bahria account. Now all are in hold. Think

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