(February 22, 2019)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday said that issuance of Pakistan Banao Certificate (PBC) is a good initiative of PTI led Govt. for benefiting overseas Pakistanis giving them the opportunity to invest and build their Country through safe and convenient investment scheme. PBC will not only help in releasing pressure on the Country’s FX reserves but will also grant overseas Pakistanis the opportunity to invest in Pakistan. Currently, the State Bank has reserves of around $ 8 billion while total foreign exchange reserves held in the Country are $ 14.8 billion which are 0.6 % reduced compared to previous week and 24 % less than that of February 2018.
The Veteran Business Leader while talking to the business community said that two different bonds have been launched under PBC which are for 3 and 5 years with profit margins of 6.25 and 6.75 respectively to be paid bi-annually. Overseas Pakistanis have highly appreciated this scheme and within less than two weeks period, more than 5 thousand people have been registered and investment worth $ 1 million has received from just 50 people. Given to better yields, friendly process and patriotism of Pakistanis abroad, this scheme will be of great success. Government estimates $ 1 billion investment through PBC till June 2019.
The Former Minister said that foreign remittances received in the seven months of ongoing fiscal year stood at $ 12.5 billion having an increase of $ 1.5 billion from the same period of previous year. PBC may result in declining remittances but foreign reserves will get improved and participation of overseas Pakistanis’ investment in the Country will rise.
Mian Zahid Hussain said that U.S and KSA offers 2.49 % and 3.5 % yields on bonds of 3 years while for five years bonds the offered interest rate is 2.88 and 4 percent respectively, while Pakistan offers interest rate of 6.25 and 6.25 percent. Investment under this scheme will also be exempted form withholding tax and Zakat.
Mian Zahid Hussain said that backdrop of efforts being made by current government for improved investment in the Country, business community believes that Pakistan has a bright investment future and foreign investment will soon be rose and improved.