SBP Launches Naya Pakistan Certificates in SAR and AED
The State Bank of Pakistan (SBP) has announced the expansion of Naya Pakistan Certificates (NPCs) to include denominations in Saudi Riyal (SAR) and United Arab Emirates Dirham (AED). This move aims to attract more foreign investment by providing diverse currency options for investors.
According to a recent circular, banks have been informed by the Finance Division that NPCs will now be available in SAR and AED, alongside existing options such as the Pakistani Rupee, US Dollar, and Euro. The government has also notified updated profit rates for NPCs denominated in these two currencies.
The returns on SAR and AED NPCs are set at 6.50% for a three-month tenure, 6.75% for six months, and 7% for 12 months. For longer durations, three-year and five-year investments in SAR and AED will yield 7.25% and 7.50% respectively. These rates are slightly lower than those offered on US dollar-denominated certificates.
For comparison, the US dollar NPCs provide returns of 6.75% for a three-month term, 7% for six months, and 7.25% for 12 months. Longer tenors in US dollar NPCs offer 7.50% for three years and 7.75% for five years, surpassing the yields on SAR and AED investments.
Pakistani Rupee NPCs continue to offer the highest returns among all currency options, with rates of 11.75% for three months, 12% for six months, and 12.25% for 12 months. Three-year and five-year investments in Rupees yield 12.50% and 12.75% respectively.
On the other hand, Euro-denominated NPCs provide the lowest returns, with 4.75% for three months, 5.25% for six months, and 5.50% for 12 months, making them the least attractive investment option.
Since their launch in 2020, Roshan Digital Account inflows into these certificates have reached $12.744 billion. More than 62 percent of this amount has been directly invested into Naya Pakistan Certificates across multiple currencies. Data from the State Bank show that $8.15 billion of these inflows have been utilized locally, while the net repatriable liability currently stands at approximately $2.44 billion. This indicates controlled external exposure related to these investments.
The introduction of SAR and AED NPCs is expected to facilitate investments from Pakistani expatriates and investors in the Gulf region, providing them with more currency options and encouraging capital inflows which can be used for economic development within Pakistan.
With competitive profit rates and multiple currency options, the Naya Pakistan Certificates remain a key instrument for mobilizing inward remittances and promoting savings among Pakistanis abroad.