SBP to issue Naya Pakistan Certificates in Saudi riyal, UAE dirham

The State Bank of Pakistan (SBP) has said Naya Pakistan Certificates (NPCs) will now also be issued in Saudi riyal and UAE dirham, with returns set slightly below those offered on US dollar investments.

In a circular, the central bank informed banks that the Finance Division had notified the issuance of NPCs in Saudi Arabian Riyal (SAR) and UAE Dirham (AED).

The government has also notified revised rates of return for the certificates.

For SAR and AED investments, returns are fixed at 6.50% for three months, 6.75% for six months, and 7% for 12 months.

The return on three-year SAR and AED certificates has been set at 7.25%, while five-year certificates will offer 7.50%.

US dollar NPCs will offer 6.75% for three months, 7% for six months and 7.25% for 12 months.

Returns on three-year and five-year US dollar certificates have been raised to 7.50% and 7.75%, respectively.

Pak rupee NPCs will continue to offer the highest returns among the notified currencies.

The return on rupee certificates has been set at 11.75% for three months, 12% for six months and 12.25% for 12 months.

Three-year and five-year rupee certificates will offer 12.50% and 12.75%, respectively.

Euro-denominated NPCs carry the lowest returns, with rates fixed at 4.75% for three months, 5.25% for six months and 5.50% for 12 months.

Naya Pakistan Certificates have become a major investment instrument under the Roshan Digital Account (RDA) framework.

Latest SBP data showed that total inflows under RDA, including NPCs, reached $12.744 billion since the scheme was launched in 2020.

More than 62% of total RDA inflows have been invested in NPCs.

According to SBP data, about $8.15 billion out of total RDA inflows has been used locally, while net repatriable liability stands at $2.44 billion.