Govt places draft rules for luring investment from NRIP

ISLAMABAD: The government has placed draft rules for luring investment from Non-Resident Individual Pakistanis (NRIP) living abroad in rupee or US dollar or any other currency notified by the government.

All requirements of FATF related to Know Your Customers (KYC) and Customers Due Diligence (DCC) will be complied. The Overseas Pakistani Savings Bills Rules, 2020, which are proposed by the federal government to be made in exercise of its powers conferred by Section 28 of the Public Debt Act, 1944 (XVIII of 1944), are hereby published, as required under sub-section (1) of the said section, for the information of all persons likely to be affected thereby and notice is hereby given that objections or suggestions thereon, if any, may be sent to the Finance Division within seven days of the publication of this notification in the official gazette.

These rules shall be called the Overseas Pakistani. These rules shall be applicable to the Overseas Pakistani Savings Bills Eligibility criteria.- NRIP having National Identity Card for Overseas Pakistanis, foreigners having Pakistan Origin Card, members of Overseas Pakistanis Foundation or an employee or official of the federal government or a provincial government posted abroad that are eligible to open foreign currency account and NRAR as per existing regulations may either individually or jointly purchase the Bill: Provided that in case of a minor, the parents or the legal guardian, shall operate all transactions on behalf of the minor until the age of eighteen years at which time the minor should meet the criteria under these rules: Provided further that in case of a Bill being purchased jointly, both joint holders of the Bill shall be required to meet the eligibility criteria set out in these rules.

The Bill shall be issued in scrip-less form or any other form or format as approved by the Finance Division from time to time in consultation.

Types of the Bill.- The Bill shall be issued in conventional form and also in Shariah compliant form as per Shariah structure notified by the Finance Division from time to time.

Tenor.- The Bill shall be issued for three, six or twelve months or any other tenor as notified by the Finance Division from time to time.

Currency of the Bill.- The Bill shall be issued in both PKR and USD or any other currency as may be notified by the Finance Division from time to time.

Denomination of the Bill.- The minimum denomination of the Bill and maximum investment limit thereof shall be as announced by the Finance Division from time to time.

Bills' issuance.- The Bill shall be issued through selected commercial banks, hereinafter called the agent banks, to be selected by Central Directorate of National Savings (CDNS) in consultation with the SBP. CDNS shall issue or allocate inventory of scrip-less Bill to agent banks for issuance to their foreign currency (FCY) or NRAR account holders, hereinafter called the account holders. The agent banks shall keep the Bill inventory so received by CDNS in the CDNS securities account to be opened with them and shall make arrangements to update CDNS about the usage of the inventory and its reconciliation with CDNS. The agent banks shall also open investment portfolio securities (IPS) accounts of the account holders purchasing the Bill and credit the Bill in the IPS accounts.

10. KYC, CDD and EDD of the purchasers.- KYC, CDD and EDD of the purchasers of the Bill, being the account holders of agent banks, shall be the responsibility of the agent banks. The KYC, CDD and EDD requirements shall however, be completed at the time of opening of the FCY or NRAR accounts.

Online application form.- For purchasing a Bill, the purchaser shall fill an online application form to be available on the web-page of the agent banks.

Source of funds.- The funds for investment in Bills must be remitted from abroad as per prevailing regulations and processes: Provided that funds remitted in the non-resident foreign currency accounts and NRAR account of the investor after the 15th of April, 2020 may be used for investment in the Bills: Provided further that residents' foreign currency accounts shall not be used for investment in the Bills.