A dollar-denominated bond targeting Pakistani expats will be launched on Thursday, January 31, offering 6.25% return on 3-year maturity and 6.75% maturity on 5-year maturity, a senior official said.
The bond, called the Pakistan Banao Certificate, will be offering 6.25% return on three-year maturity and 6.75% maturity on five-year maturity, Pakistan’s finance minister Asad Umar said.
The minister told Dawn that the bond would be open-ended and its size would be decided following the demand from the Pakistani diaspora living in the UAE and other countries abroad.
The returns of Pakistan Banao Certificates will be paid to investors on a semi-annual basis in the foreign currency of their choice through their foreign accounts. The certificates will be issued to those who hold a National Identity Card for Overseas Pakistanis or Pakistan origin cardholders.
The marketing campaign will be launched for the bond on different media platforms from tomorrow. In addition, roadshows will be held across different countries, according to the Dawn report.
The bond will increase foreign exchange reserves and overcome the balance of payment crisis. After Saudi Arabia, Islamabad last week signed an agreement for $3 billion with the UAE to improve its forex reserves. The first tranche of around $1 billion was deposited by the UAE last week.
There are currently over nine million Pakistanis living abroad, remitting close to $20 billion annually. Remittance from the UAE jumped 6 per cent in the first half of 2018-19 to $2.3 billion.
Source: Khaleej Times