The federal government has significantly raised the returns on conventional Naya Pakistan Certificates (NPCs) to foster investment. This rate adjustment marks the second such alteration this year, following a prior update in January.
The State Bank of Pakistan (SBP) has implemented these changes in accordance with government directives, with the new rates taking effect from September 1, 2023.
The revised rates for Conventional NPCs are as follows:
For a minimum investment of $1,000, with integral multiples of $500, the 3-month rate of return (gross annual return before tax) has increased from 7 percent to 8.25 percent. The 6-month rate has been adjusted to 8.5 percent, compared to the prior 7.2 percent. For a 12-month investment, the profit rate now stands at 9 percent, compared to the previous rate of 7.5 percent. The profit rate for 3-year and 5-year investments remains unchanged at 8 percent.
For investors in Pakistani Rupees (PKR), a minimum investment of Rs 10,000, with integral 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 integral 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 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 integral 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 SBP, these adjusted NPC rates have already been notified through Gazette notifications No. S.R.O. 1191(I)/2023 dated August 31, 2023. These adjustments reflect Pakistan’s ongoing efforts to attract investment while providing a secure and competitive investment option for both local and international investors.