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Frequently Asked Questions (FAQs)

Naya Pakistan Certificate (NPC) is a fixed income security offered digitally by Government of Pakistan under NPC Rules 2020 framed under Public Debt Act, 1944. It is a sovereign security denominated in US Dollars, and Pak Rupees issued with full faith and credit of the Government of Pakistan. The NPCs are available in five maturities, namely, 3-month, 6-month, 12-month, 3-year and 5-year, and carry following profits rates per annum (p.a):

Tenor USD NPCs PKR NPCs GBP NPCs Euro NPC
3-Month 5.50%, p.a. 9.50% p.a. 5.25% p.a. 4.75% p.a.
6-Month 6.00% p.a. 10.00% p.a. 5.50% p.a. 5.00% p.a.
12-Month 6.50% p.a. 10.50% p.a. 5.75% p.a. 5.25% p.a.
3-Year 6.75% p.a. 10.75% p.a. 6.25% p.a. 5.50% p.a.
5-Year 7.00% p.a. 11.00% p.a. 6.50% p.a. 5.75q  p.a.

The profit on 3-month, 6-month and 12-month NPCs shall be payable on maturity, whereas the profit on 3-year and 5-year shall be payable to the investors on semi-annual basis.

Yes! NPCs are sovereign instruments, issued with full faith and credit of the Government of Pakistan.

Non-resident Pakistanis having National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin Card (POC ), and resident Pakistanis having declared assets abroad, are eligible to invest in NPCs through Foreign Currency Value Account (FCVA) and Non Resident Pakistanis Rupee Value Account (NRVA) account being marketed by agent banks as Roshan Digital Accounts (RDAs). Opening a Roshan Digital Account with one of the agent banks is a pre-requisite for investment in NPCs.

Yes, a minor can invest in NPCs provided he/she meets the eligibility criteria mentioned in Q4 above. The parents or the guardian shall operate all the transactions on behalf of the minor until the minor is of eighteen (18) years of age.

The amount of Investment in USD, PKR, GBP and Euro denominated certificate is as under:

US Dollar Denominated Certificates Minimum investment of USD 5,000 with integral multiples of USD 1,000 with no maximum limit
PKR Denominated Certificates Minimum investment of PKR 100,000 with Integral multiples of PKR 10,000 with no maximum limit.
GBP Denominated Certificates Minimum investment of GBP 5,000 with Integral multiples of GBP 1,000 with no maximum limit.
Euro Denominated Certificates Minimum investment of EUR 5,000 with Integral multiples of Euro 1,000 with no maximum limit.

Yes! Premature encashment of NPCs is permissible. The investors can redeem his/her investment fully or partially, before the maturity date. Premature encashment proceeds shall be calculated at the rate of return equivalent to the return of the nearest shorter maturity of Certificates. For example, an investor of a 12-month NPC withdraws his/her investment in the 8th month of holding, in this case, he/she will be entitled to profit for the period up to date of premature encashment, fixed at the rate of return applicable on 6-month NPCs.

However, no profit shall be paid in case of encashment of certificates before completion of 3 (three) months. Moreover, partial encashment below the minimum investment amount (i.e. USD, GBP and Euro 5,000 or PKR 100,000) is not allowed.

Currently following banks have been engaged by the Government of Pakistan for sale and marketing of NPCs:

Bank Al-Falah Limited Bank AL Habib Limited Dubai Islamic Bank Faysal Bank Limited
HBL Bank Limited Habib Metropolitan Bank MCB Bank Limited Meezan Bank Limited
Samba Bank Limted Standard Chartered Bank (Pakistan) Limited United Bank Limited Bank Of Punjab
The investors can open Roshan Digital Account in any of these banks for investment in NPCs. State Bank of Pakistan shall notify any addition/change in the above list of agent banks as and when new banks are added by GOP as agent banks.

Yes! If an investor is maintaining his/her FCY RDA in any approved foreign currency with agent banks, he/she can invest in USD denominated NPCs. In such cases, the agent bank shall debit the investors’ account by an amount equivalent to the amount of investment requested in USD denominated NPCs by applying the exchange rate prevailing at the time of execution of the transaction. Similarly, the investors having FCY RDA in currencies other than GBP and Euro can invest in GBP and Euro NPCs.

The funds on maturity, on premature encashment, and the periodic coupon payments (where applicable), will be credited in the investor’s RDA only.

No! NPCs are exempt from zakat deduction as per the NPC Rules, 2020.

Yes! The return/profits on NPCs are subject to 10 percent withholding tax as full and final settlement of tax liability on NPC profits. The non-resident investors are also not required to file any tax return if their only source of income in Pakistan is profits earned on NPCs and other investments including stock market, mutual funds and real estate.

Yes! As per the NPC Rules, 2020, the Certificates can be pledged as security for raising financing subject to such conditions as may be prescribed by the State Bank of Pakistan.

No! The NPCs are non-transferable except, if required under the relevant laws.

In case of death of an investor, the payment (principal and profit, if any), will be made to the legal heirs of the deceased investor in accordance with the succession certificate or equivalent documentation in accordance with the law for the time being in force.

No! The investor can invest, and redeem the NPCs digitally by visiting the web portals of his/her respective agent bank.

Yes! The Shariah compliant version of NPCs i.e. Islamic NPC (INPCs) are also available!

The INPCs are being issued under the Shariah Structure notified by Finance Division Government of Pakistan under NPC Rules 2020. An SPV namely Islamic NPC Company Limited (INPCCL) has been registered with SECP as a fully Government of Pakistan (GOP) owned entity. The SPV is collecting funds from Investors on Mudaraba basis and providing the funds so collected from investors to GOP on Ijarah (Leasing) basis. The Shariah structure has been approved by Shariah Advisory Committee of the State Bank of Paksitan. Furthermore, the Shariah Advisor of SPV will provide Shariah advice/guidance on ensuring Shariah compliance in execution of INPCs and its operational matters. The full Shariah structure notified by Finance Division GOP can be seen at (https://www.sbp.org.pk/acc/2020/C7-Annex-A.pdf).

The expected rate of return on INPCs of different tenors are the same the rates being offered on conventional. There is, however, no guarantee that INPCs will be remunerated on these rates as profits on INPCs will be paid based on the actual results of USD and PKR pools being managed by SPV for issuing the INPCs. The Profit Sharing ratio between SPV as Mudarib and Investors as Rabbul Maal and weightages for different tenors of INPCs have also been notified by SPV and will be updated on monthly basis.

Yes! The INPCs can be encashed prematurely, but only after one month of investment. The INPCs encashed after one month but before 3 months will be remunerated based on the actual return of the Mudaraba pool. The SPV will however purchase the INPCs from investors at a discounted price based on the redemption table to be notified by SPV. The INPCs encashed after three months shall be remunerated based on the weightages applicable to the nearest completed tenor INPCs. Example: If a 36-month INPC is prematurely encashed before 12 months, the profit shall be calculated based on the weightages applicable to six month INPCs, whereas, the weightages applicable on 12-month INPCs shall be used if redeemed after 12-months. The coupon payments earlier made based on the higher weightages, shall be adjusted by applying appropriate discount on the purchase price to ensure that the investor earns profits based on the weightages of the nearest completed tenor.


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