In an attempt to attract foreign currency investments from abroad, the government of Pakistan has raised the markup rates for Naya Pakistan Certificates (NPCs).
These certificates, which are USD, PKR, Euro, and British Pound-denominated sovereign instruments issued by the government, offer risk-adjusted returns over various maturities. They are available in both conventional and Shariah-compliant versions and are administered by the State Bank of Pakistan (SBP). The Ministry of Finance has amended its notification and increased the rates for NPCs.
According to a Statutory Regulatory Order (SRO) issued by the Ministry of Finance External Wing, there will be a rate of return of 7% for three-month investments on $1,000, up from the previous rate of 5.50%. For six months, there will be a rate of return of 7.20% against the previous rate of 6%. For one-year investments, the rate of return will be 7.50% on $1,000, up from the previous rate of 6.50%.
On a three-year investment of $1,000 in NPC, the new rate of return will be 8% against the previous rate of 6.75%. And for five year investment of $1,000 in NPC, the new rate will be 8% against the previous rate of 7%.
