Pakistan Banao Certificate: Govt eying to get $300 to $500m in three months

[ahlam1399]

ISLAMABAD: The PTI-led government has not imposed any bar on Pakistanis having foreign accounts to invest in Pakistan Banao Certificate (PBC) as Islamabad is eyeing to get in the range of $300 to $500 million through this scheme till June this year.“The resident Pakistanis having foreign accounts can invest in Pakistan Banao Certificate as there is no restrictions on them,” top official sources confirmed to The News here on Saturday. All those foreign account holders who qualify the criteria of KYC (Know Your Customer) can invest in the PBC, added the sources.When contacted, Ministry of Finance Adviser and Spokesman Dr Khaqan Najeeb said on Saturday that vigorous campaign would be launched in all those areas where Pakistani diaspora was residing and possessed disposable income to lure them for investing into this scheme.When asked about importance of the PBC, he replied that there was no sovereign foreign currency denominated retail instrument for attracting savings of expatriate Pakistanis. The earlier launched Euro Bonds and Sukuk, he said, were largely for institutional investors and high net worth individuals with a minimum investment of $250,000.“Pakistan Banao Certificate is the first retail instrument for overseas Pakistanis with a low minimum investment of just $5,000. It will enable a large number of overseas Pakistanis to invest in the first sovereign retail instrument offered by GOP,” he added.Talking about objectives of the PBC, he said that it provides an investment opportunity to 8.5 million Pakistanis living abroad to raise funds for financing critically important infrastructure projects including road networks, transport, water resources, health and education facilities. This is an opportunity for the expatriates to earn a competitive profit on their investment, and, at the same time, contribute towards the development of Pakistan, he added.When asked whether the government launched this scheme for the balance of payment support, Dr Khaqan eplied that the government continues to follow a multi-pronged strategy to ensure continued stability in balance of payments of the country. The strategy has included attracting more FDIs, sale of assets and expediting bilateral and multilateral flows. The role of the PBC in the whole strategy is to diversify sources of attracting investment and at the same time strengthening Pakistan’s foreign exchange reserves. It is important to remember that Pakistan has the sixth largest diaspora in the world and helping them channelise their savings in productive sectors is imperative.The Government of Pakistan (GOP) is the issuer and each certificate is backed by sovereign guarantee of the government. To another query about offered rates of this scheme, he made comparison of interest rates offered by different countries and stated that the UK offers a rate of around 0.8% for three years and 1.0% for five years, the US has a coupon of around 2.55% and 2.56% for three and five years respectively.So by all means a rate of 6.25% and 6.75% on three and five years PBCs is competitive. In addition, the terms of profits entitle the investor to receive a profit every six months till the maturity of the certificate. To another query about possibility of continuation of this scheme after June 30, he said that the government would take decision on it after expiry of its deadline. So far efforts are underway to lure investment within the envisaged timeframe, he concluded.http://feeds.feedburner.com/~r/com/cwEr/~4/7RJjqgk87K8

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