The government increased the markup rates for the Naya Pakistan Certificates in a move to attract foreign investment and currencies from abroad as many overseas Pakistanis have been resorting to hawala and hundi with the black market offering much-higher return.
Issued by the Government of Pakistan, the Naya Pakistan Certificates — which offer risk-adjusted returns over different maturities — are the sovereign instruments offered in US dollar, Pakistan rupee, euro and British pound.
They are available in both conventional and Shariah-compliant versions, and administered by the State Bank of Pakistan (SBP).
According to a Statutory Regulatory Order (SRO) issued by the Ministry of Finance External Wing, there will be a 7 percent rate of return three-month investments of $1,000, against the previous level of 5.50 percent increasing to 7.20 percent against the previous rate of 6 percent for six months.
On one-yearly investment of $1,000 in Naya Pakistan Certificate, there will be a rate of return of 7.50 percent against the previous return of 6.50 percent. The mark up for three-year investment of $1,000 has been jacked up to 8 percent – representing a 1.25 percent increase.
Similarly, the new markup rate will be 8 percent against the previous level of 7 percent on five-year investment of $1,000.
As far as the British pound is concerned, the rate of return on £1,000 investment will be as follow: 5.50 percent for three months, 6 percent for six months, 7 percent for one year, and 7.50 percent for three-year and five-year periods.
When it comes to €1,000 investment in Naya Pakistan Certificates, the offered markup rate will be 4 percent for three months, 4.50 percent for six months, 5 percent for one year, and 6.50 percent for three years and five years periods.
For an investment of Rs10,000, there will be a 15 percent rate of return for three months, 15.25 percent for six months, 15.50 percent for one year, 14 percent for three years, and 13.50 percent for five years.