Govt introduces innovative Pakistan Banao Certificates to allow overseas Pakistanis to contribute to economy, earn handsome returns

Pakistan has the sixth largest diaspora in the world as around 8.5 million Pakistanis are living abroad.

According to an estimate, United States is home to about 500,000 Pakistanis, Saudi Arabia houses 2.2 million while 1.3million and 1.2 million Pakistanis live in UAE and United Kingdom respectively. Contributing in the development of country through annual remittances of over US dollar 20 billion; inclined to stay connected with Pakistan through investments, philanthropy, and personal involvement.

To tap that potential, Government of Pakistan has introduced Pakistan Banao Certificates (PBC), a sovereign US Dollar denominated retail level instrument, for Pakistanis having bank accounts overseas.

PBC is the first sovereign retail instrument being offered by the government allows overseas Pakistanis to contribute in their country’s development and earn handsome returns. The PBCs are available for 3 years and 5 years maturity with profit rates of 6.25 percent and 6.75 percent per annum respectively payable semiannually.

Operational Mechanism

PBC is being offered for subscription through a specially designed Web-Portal (https://www.pakistanbanaocertificates.gov.pk).

The investors first register themselves on the portal and give their investment and bank account details on successful registration.

The certificates are issued to the investors electronically on receipt of funds in State Bank of Pakistan Account given on the portal.

The investor receives confirmation of the issuance of the certificates both through email and updation of their account on the portal. The investors can view the status of their application by accessing the web-portal through their respective User ID and Password.

Step 1: Investor will access the portal and create his/ her profile.

Step 2: The will be registered subject to verification of CNIC/NICOP/POC;

Step 3: Investor will then add his/her Investment request and Bank Account Details;

Step 4: On completion of investment and bank account details, the Investor will get the unique reference number for remitting the funds to the PBC Bank Account at National Bank of Pakistan (NBP) New York;

Step 5: Investors can remit funds from their own designated bank accounts only;

Step 6: Screening of the applicant for United Nations Security Council (UNSC), European Union (EU), Bank of England (BOE) and Office of Foreign Assets Control (OFAC) list for clearance;

Step 7: Funds of only those applicants will be accepted that clear the above screening

Step 8: SBP upon confirmation of receipt of funds will issue the security and inform the investor

The investor can view the status of his/her investment application by accessing the PBC Portal through his/her User ID and Password.

Process will complete in 5 to 7 minutes only.

Investment and Remittance of Funds to SBP Account

Investment can be made in US Dollars five thousand (USD 5,000) and any integral multiples of US Dollars one thousand (USD 1,000) in excess thereof with no upper limit on the investment amount.

The investor will be required to accept terms and conditions governing the certificates before submission of investment request (Annexure-B).

Upon submission of investment request on PBC Web Portal, a unique reference number will be sent to investor’s registered e-mail address along with details for remittance of funds in SBP account.

Funds should be remitted from investor’s personal bank account to the following SBP account maintained with NBP New York.

While remitting funds to SBP, the investor must provide unique reference number, Date of Birth and Place of Birth in the Field 70/ 72 of the SWIFT message.

The investor should ensure that the amount submitted to SBP account is exactly equal to the amount of investment; while the charges, if any, should be paid separately from the investor’s personal account. In the case where submitted amount is less than the subscribed amount in the investment request; certificates will not be issued and the investor will be required to transfer the remaining amount. However, in case where submitted amount is in excess of the subscribed amount, only the subscribed amount would be invested.

Distinction between subscribed amount and submitted amount:

Subscribed Amount: Face Value/ Investment Amount of PBCs opted by Investor.

Submitted Amount: Actual amount received by NBP New York for investment.

Certificate Issuance

Upon completion of verification of investor’s credentials and their screening by NBP and confirmation of receipt of funds in SBP PBCs account; scripless certificates will be issued to the investor. As part of electronic confirmation, following details will be confirmed at the investor’s registered e-mail address, and the investor’s account on the PBC Web Portal will be updated:

IPS Account number of the investor; and  details of investment in the certificates including issue date, amount, maturity date, profit payment schedule, certificate number etc.

Procedure of Periodic Payments

Profit payments will be paid in USD on a semi-annual basis, determined from the date of issuance of the certificates. For example: if certificates are issued on 6th February the profit payments would be made on 6th August  and on subsequent six-monthly dates accordingly.

Profit in US Dollars will be remitted on the due profit payment date, to the investor’s nominated USD account, which can be in his/her country of residence or in Pakistan.

A shut period of 5 working days ( in accordance with the  Pakistan Standard Time) will be observed prior to the due date of periodic profit payment; therefore any request for encashment received during the period will be processed after the due date of semi-annual profit payment.

The Salient Features

Profit on bi-annual basis.
Maturity in USD as well as PKR.
PKR maturity has an added incentive of 1% on the final premium.
Can be en-cashed at any time; however encashment in USD within one year of issuance entails 1 percent penalty.
Encashment application will also be submitted online by accessing the Redemption module of PBC portal.
Periodic Profit and redemption proceeds will be sent to the investors’ accounts designated at the time of investment.