Why Is SBP Offering Riyal and Dirham Investments Now?
News Desk
Islamabad: The State Bank of Pakistan (SBP) has expanded the scope of Naya Pakistan Certificates (NPCs) by introducing investment options in Saudi Arabian Riyal (SAR) and UAE Dirham (AED), aiming to attract more overseas Pakistanis from the Gulf region.
According to a circular issued by the central bank on Monday, commercial banks have been informed that the Finance Division has approved the launch of NPCs denominated in SAR and AED.
Under the newly announced rates, investors in both Saudi riyal and UAE dirham certificates will receive returns of 6.50 percent for three months, 6.75 percent for six months and 7 percent for one year. The profit rates for three-year and five-year investments have been fixed at 7.25 percent and 7.50 percent respectively.
The revised rates also show that investments in US dollar-denominated NPCs will continue to offer comparatively higher returns, with investors receiving 6.75 percent for three months, 7 percent for six months and 7.25 percent for 12 months. Profit rates for three-year and five-year dollar investments have been increased to 7.5 percent and 7.75 percent respectively.
Pakistani rupee-denominated NPCs remain the highest-yielding option, offering returns ranging from 11.75 percent to 12.75 percent depending on the investment tenure.
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Meanwhile, euro-denominated certificates continue to provide the lowest returns, ranging between 4.75 percent and 5.50 percent for short- and medium-term investments.
Since their launch in 2020 under the Roshan Digital Account (RDA) initiative, Naya Pakistan Certificates have emerged as one of the government’s key tools for attracting overseas investment.
Latest SBP figures show total inflows under the RDA programme have reached $12.744 billion, with more than 62 percent invested in NPCs.
The data further revealed that approximately $8.15 billion from these inflows has already been utilised domestically, while the country’s net repatriable liability currently stands at around $2.44 billion.
