Imran Khan launches Pakistan Banao Certificates to help bridge a balance of payment crisis

ISLAMABAD: Prime Minister Imran Khan on Thursday launched the ‘Pakistan Banao Certificates’, an investment opportunity for overseas Pakistanis, in a bid to attract funds in foreign currency from Pakistani Diaspora abroad.

The Pakistan Banao Certificates are available in three and five year maturities at profit rates of 6.25 percent and 6.75 percent per annum respectively. Minimum investment size is US $5,000 with no upper limit. Overseas Pakistanis, having a CNIC, NICOP or POC, maintaining their bank accounts abroad can invest in the Pakistan Banao Certificates digitally through a dedicated secure website (www.pakistanbanaocertificates.gov.pk). [the_ad id=”31605″] Every investor will be issued a unique identity number and profits in US Dollars will be remitted semi-annually to the investor’s specified account maintained abroad.

The country faces an economic crisis due to depleting foreign reserves and a widening current account deficit. It has secured some loans and oil on deferred payments from Saudi Arabia and United Arab Emirates, and is in negotiations for an IMF bailout.

“There was record high fiscal deficit. We knew as outsiders that country is crumbling. As insiders we saw the extent of how bad the affairs were,” Prime Minister Imran Khan said at the televised launch of the bond programme. Khan urged investors in the scheme to take their interest in local currency rather than dollars.

Pakistan Banao Certificates also offer exemptions from withholding tax and compulsory deduction of Zakat. Investors will also have the option to encash the certificates prematurely in Pak Rupee without any deduction.

“The launch of Pakistan Banao Certificates is a step towards welfare of overseas Pakistanis and the Prime Minister and his team are fully committed to acknowledge and support overseas Pakistanis in recognition of their unrelenting support and love for the motherland. The Certificates also reflect the commitment of the Government to ensure that development financing is diversified and made sustainable in the long term interest of the country,” Press Information Department (PID) reported.

They are the second such scheme introduced this week after authorities announced plans for an Islamic bond to generate Rs200 billion to help pay down power sector debts.

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