The Presidents/Chief Executives of

All Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

Amendment in Instructions regarding NRP Rupee Value Account (NRVA)

1. Attention of Authorized Dealers (ADs) is invited to Para 2-III {iv(a)} of FE Circular No. 1 dated August 5, 2020.
2. In terms of above Para, NRP Rupee Value Account (NRVA) holder can invest in government registered debt securities, quoted shares in stock exchange, residential and commercial real estate and term/ remunerative deposit scheme of banks in Pakistan. In order to enhance the scope of investments for NRPs, it has been decided to allow investment in units of funds quoted at Stock Exchange and units of mutual funds registered as Open End Schemes (OES) from NRVA. Accordingly, the following amendments have been made in Para 2-III of FE Circular No. 1, dated August 05, 2020 as under:

i. New sub para 5 has been added after sub para 4 of Para 2-III {iv(a))

5. Investment in units of funds quoted at Stock Exchange and units of mutual funds registered as Open End Schemes (OES) under management of Asset Management Companies (AMCs) licensed by SECP to provide asset management services.

Consequently, the procedure for investment through NRVA, mentioned under Para 2-III {iv(a)}, has been replaced with the following:

The transfer of funds for the above investments shall be allowed by the ADs through the special instructions received from the account holder in this behalf. For investments mentioned at (1),(2) &(5) above, the procedure prescribed for investment/ disinvestment at Para 9 Chapter 20 of the Foreign Exchange Manual shall be followed while for investment mentioned at (3) above, the terms and conditions prescribed at Annexure-A, at the end of this chapter, shall be followed.

ii. Para 2-III {iii(c)} shall be replaced with the following:

c. Proceeds from disinvestment/sale/maturity of Government of Pakistan’s debt securities, residential and commercial real estate, quoted shares/units of funds, term deposits, units of mutual funds registered as open end schemes, and profit/rent/dividend/interest on such securities/properties/shares/units of funds/deposits received on account of investments made from the account as mentioned at sub-para (iv) (a) below.

3. Keeping in view the above changes, the Annexure- B has also been revised and attached herewith for necessary compliance.
4. All other instructions on the subject matter shall remain unchanged. ADs are advised to bring the above instructions to the knowledge of all their constituents for meticulous compliance.