Investing in Pakistan is a golden opportunity not only for residents of Pakistan but also for overseas Pakistani who are spread across the globe. Additionally, foreigners also show interest in investing in Pakistan, and they have been given the facility to invest in properties of Pakistan. The government of Pakistan encourages these foreign investments a lot no matter they are by overseas Pakistanis or foreigners.
In 2021, Prime Minister Imran Khan launched investment certificates for overseas Pakistanis to boost the foreign exchange reserves of the country. “We are allowing our overseas nationals to bring dollars to Pakistan and help the country,” he said when he addressed the inauguration ceremony of the Naya Pakistan Certificated Scheme in the capital city, Islamabad.
How does Naya Pakistan Certificate Scheme work?
The newly launched certificates facilitate Shariah complaint options which will benefit not only the overseas Pakistanis but to residents of Pakistan who have declared their assets abroad.
This scheme makes the eligible investors for parking their savings in new certificates in US dollars, or Pakistani rupees for a specific period of three months to five years. In dollars, the minimum investment you can make in dollar-denominated certificates is $5,000 and have no maximum limit. While those who invest in Pakistan rupees can also be part of a scheme by paying a minimum of Rs 100,000 and can increase by integral multiples of Rs10,000.
Residents who do invest in US dollars will get a 07 percent return, and the ones paying for certificates in Pakistani rupees will get an 11 percent return on investment.
Roshan Digital Account Scheme
State Bank of Pakistan, with the support of eight major banks of Pakistan which are leading the project under the Pakistani diaspora, are given the facility to avail the banking from the digital payment system.
The overseas Pakistanis can also invest in Naya Pakistan Certificate Scheme through the Roshan Digital Account scheme that was launched in 2019.
This also facilitates expatriates in remotely opening their bank accounts in their country without even walking to a bank branch. They can invest in various sectors, including the real estate sector.
Due to this initiative, Pakistanis who live abroad will be able to operate their accounts without visiting the country and will have the facilities of direct banking, bill payments, and the rest of the e-commerce facilities.
They will be able to bring these accounts into use by investing in a stock exchange, and property of Pakistan. These individuals will have the option of opening both, Pakistan currency account or a foreign currency account.
Islamic housing finance for Overseas Pakistanis (NRPs)
Islamic housing finance is spreading day by day, and a new scheme has been formed to facilitate overseas Pakistanis for buying a house for themselves or their loved ones in Pakistan, providing Islamic banks golden opportunity to increase their footprints in the mortgage market of the country.
The total housing finance in Pakistan is Rs110 billion, and Shariah-compliant financing is about Rs65 billion. Construction activities in the construction sector have a solid impact on various industries of the country, and also helps in increasing employment.
State Bank of Pakistan has launched a new product known as Roshan Apna Ghar for NRPs, and two types of financing facilities are offered under this product. One is standard financing in which lien-based financing, as well as non-lien-based financing, is available.
In lien-based financing, NRPs can attain the house finance facility against a lien on their Roshan Digital Account deposit balances or Naya Pakistan Certificates. Banks will finance them up to 100 percent of property value for buying or constructing a house, for renovating a house, while financing will be up to 40 percent of the property value.
Non-lien-based financing is that typical housing finance offered against the mortgage of the property to be bought. Bank can fund up to 85 percent of the property value for buying or constructing a house, while up to 30 percent of the property value for renovating the house.
This is how Pakistan is putting in its best efforts to facilitate its residents, and overseas Pakistanis in the best possible manner. This way they will stay connected to their roots. This won`t be just an investment but also a way of making them stay linked to their mother country, especially when it comes to NRPs/overseas Pakistanis.
