Pakistan is said to have the sixth largest diaspora around the world with the US alone being home to approximately 500,000 Pakistanis; the UAE holds up to 1.3 Million Pakistani expats and the UK around 1.2 Million.

Estimated annual contributions, via remittances, by Pakistanis living abroad amount to USD 20 Billion.

Pakistanis from around the world have shown significant inclination towards investing in Pakistan's economy through investments and philanthropic activities.

Key features of Pakistan Banao Certificate (PBC)

Issuer: Government of Pakistan offering sovereign guarantee on ROI.

Eligible Investors: Pakistanis having CNIC/ NICOP or holders of POC having bank accounts outside Pakistan

Currency of Issue: US Dollar

Expected Profit Rate: 3 Years – 6.25 percent payable semiannually, 5 Years – 6.75 percent payable semiannually

Minimum Investment Amount: US$5,000 and any integral multiples US$1,000 in excess thereof with no maximum limit

Profit Distribution: US Dollars submitted to the investors designated account abroad or in Pak Rupees in Pakistan.

Repayment: Bullet

Premature Encashment: Premature encashment in Pak Rupees can be done anytime without levy or penalty. In case of encashment in USD within first year of issuance, a penalty of 1 percent will be levied.

Benefits for investors

Here's a quick look at what investors get out of the PBC program:

• 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
• Periodic profit and redemption proceeds will be sent to the investors’ accounts designated at the time of investment

Note: Encashment application will also be submitted online by accessing the Redemption module of PBC portal.

Here's a quick look at profit comparison between PBC and US/KSA bonds:

How does it work?

Step 1: Investor will access the portal and create a profile

Step 2: Registration process completes upon 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 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.

The process is entirely digital in nature and takes around 5 to 7 minutes to reach completion.

Objectives behind PBCs

The Pakistan Banao Certificate (PBC) intends to encourage support from Pakistanis living overseas for Balance of Payment (BoP) and maintenance of foreign exchange reserves.

The model aims to raise finances for critical infrastructure projects including dams, road networks, power generation and transmission projects to name a few.

The PBC is a state-run avenue ensuring safe returns on investment to overseas Pakistanis.

For more details, head over to PBC's official Facebook page.

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