Govt Proposes Amendments to Expand Eligibility for Naya Pakistan Certificates

The government has proposed amendments to the Naya Pakistan Certificates Rules, 2020, aimed at expanding investor eligibility and clarifying operational provisions related to investments in the certificates.

In a draft notification, the External Finance Wing of the Finance Division of Pakistan circulated the proposed amendments for public feedback under the Public Debt Act, 1944. Stakeholders likely to be affected by the changes have been invited to submit suggestions before the amendments are finalised.

Under the proposed revisions, new definitions would be introduced in Rule 2, including “Foreign Currency Business Value Account (FCBVA)” and “Non-Resident Rupee Business Value Account (NRBVA)”.

These accounts would be opened in accordance with the Foreign Exchange Regulation Act, 1947. The draft also defines a “non-resident person” as any non-resident individual or legal entity incorporated or registered abroad.

The amendments propose revising Rule 3 to allow every non-resident person to open and maintain FCVA, FCBVA, NRVA, or NRBVA accounts with authorised banks in Pakistan for the purpose of purchasing Naya Pakistan Certificates. Eligible investors would also be allowed to invest either individually or jointly with another individual.

In addition, resident Pakistanis who hold assets abroad and have declared them in their latest tax returns filed with the Federal Board of Revenue would be permitted to invest in the certificates through their Foreign Currency Value Accounts in Pakistan, subject to controls and procedures to be notified by the State Bank of Pakistan.

The proposed amendments to Rule 11 further clarify that investment funds must be remitted from abroad into the investor’s FCVA, FCBVA, NRVA or NRBVA accounts in line with prevailing regulations.

Another amendment addresses situations where the certificate holder is a juridical person with a separate legal personality. In such cases, if the entity is dissolved or wound up, principal and profit payments would be distributed in accordance with the laws of the country where the entity is incorporated or registered.

The Finance Division said the draft amendments have been circulated for information and public comments before a final decision is made.