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Bank AL Habib has always endeavored to support Pakistan in achieving its economic objectives for growth and prosperity. The Bank now offers Islamic Naya Pakistan Certificates (INPCs), which are Shariah compliant PKR and USD denominated instruments issued by the Government of Pakistan on the basis of Mudarabah with attractive risk-free returns over different maturities.

State Bank of Pakistan (SBP) is the sole custodian of the Islamic Naya Pakistan Certificate while Bank AL Habib is acting as an agent. The booking of the certificate is subject to issuance of the certificate by SBP.


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Shariah Compliant

Islamic Naya Pakistan Certificates (INPCs) are Shariah compliant certificates issued on the basis of Mudarabah. Under this arrangement, the holder of certificate is an investor (Rab-ul Maal) and Islamic Naya Pakistan Certificate Company Limited (INCCPL) is the Manager (Mudarib) of the funds deposited by the investors. These funds are then invested in a deposit pool comprising of Shariah-compliant transactions and the return is shared between the investors and INCCPL as per the pre-determined profit-sharing ratios and weightages.

Eligibility

  • AL Habib Islamic Roshan Digital Account (RDA) Holders (Singly and Jointly Operated)
  • The funds for investment in Certificates must be remitted from abroad

Currency

  • Certificate can be booked in PKR & USD currencies.
  • For AL Habib Islamic Roshan Digital accounts in GBP and EURO, the banks shall debit the account by an amount equivalent to the amount of investment requested in USD denominated NPCs by applying the exchange rate prevailing at the time of execution of the transaction.

How to Invest

Investor will submit the request through Bank AL Habib Roshan Digital Account web page and provide investment details such as; account no, tenure, currency and amount to be invested. Funds will be debited from customers AL Habib Islamic Roshan Digital Account for onward purchasing or certificate from SBP.

Minimum Investment

  • Minimum investment of USD 5,000 with multiples of USD 1,000
  • Minimum investment of PKR 100,000 with multiples of PKR 10,000

Profit Payout (Coupon Payment)

  • 3 months, 6 months and 12 months = At Maturity
  • 3 and 5 Years = Bi Annual
  • The six (6) months for the periodic profit payment shall be determined from the date of issuance of the certificates. For example: if certificates are issued on 10th September 2020, the profit payments shall be made on 10th March 2021 and on subsequent six-monthly dates accordingly

Profit Sharing Ratio (PSR) for the Month of February 2021

Mudarabah Pool INPCCL (Mudarib) Share Investor (Rab-ul-Maal) Share
PKR 35% of distributable income 65% of distributable income
USD 55% of distributable income 45% of distributable income

Weightages and Expected Return for the Month of February 2021

Tenure USD (Expected Return) USD (Weightage Assigned) PKR (Expected Return) PKR (Weightage Assigned) Profit Payout (Coupon Payment)
3 Months 5.50% 1.70 9.50% 1.10 Maturity
6 Months 6.00% 1.85 10.00% 1.20 Maturity
12 Months 6.50% 2.10 10.50% 1.25 Maturity
3 Years 6.75% 2.20 10.75% 1.27 Bi-Annual
5 Years 7.00% 2.30 11.00% 1.30 Bi-Annual
Bank's Investment in the pool 3.00% 1.00 8.25% 1.00 -

Premature Encashment

  • There shall be no premature encashment within the first month of issuance of INPCs
  • Certificates can be prematurely encashed (early encashment before maturity).
  • No profit will be paid in case of encashment of certificates before completion of 3 months.
  • Profit/proceeds of premature encashment made after 3 months will be calculated based upon the rates of nearest completed tenures.

Maturity

Maturity proceeds will be credited back to the investor’s AL Habib Islamic Roshan Digital Account on the same day by the Bank.

In case of a holiday, the next working day falling after the holiday will be considered the periodic profit date/principal payment date. No profit will be payable for the period of the holidays.

Zakat and Taxes

Zakat: The Certificates shall be exempted from compulsory deduction of zakat.

Tax: 10% Withholding Tax on profit will be applicable.

General Instructions

  • The Certificates shall be pledgeable as security for raising financing in Pakistan subject to conditions prescribed by SBP.
  • The Certificates are not transferable except if required under the relevant laws.
  • SBP and Bank AL Habib reserve the right to accept or reject the investment application if the investor does not comply with the necessary requirements under the rules or instructions.
  • The Certificate will not be automatically reinvested or rolled-over after the maturity date.
  • The above instructions are subject to change from time to time.

Naya Pakistan Certificate Tutorial

Frequently Asked Questions

  • What is a Islamic Naya Pakistan Certificate (INPC)?

    Islamic Naya Pakistan Certificates (INPCs) is Shariah-compliant investment instruments, issued by the State Bank of Pakistan (SBP) on the basis of Mudarabah. Under this arrangement, the holder of certificate is an investor (Rab-ul Maal) and Islamic Naya Pakistan Certificate Company Limited (INCCPL) is the Manager (Mudarib) of the funds deposited by the investors. These funds are then invested in a deposit pool comprising of Shariah-compliant transactions and the return is shared between the investors and INCCPL as per the pre-determined profit-sharing ratios and weightages.

  • Non-resident Pakistanis having National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin Card (POC), and resident Pakistanis having declared assets abroad, are eligible to invest in INPCs. PKR denominated INPCs can be purchased from AL Habib Roshan Digital PKR Account & USD denominated INPCs can be purchased from all FCY AL Habib Roshan Digital Account.

  • Opening Islamic Roshan Digital Account with the banks is a pre-requisite for investment in INPCs.

  • The minimum amount of Investment in USD denominated certificate is USD 5,000 with integral multiples of USD 1,000 with no maximum limit. The minimum amount of Investment in PKR denominated certificate is PKR 100,000 with integral multiples of PKR 10,000 with no maximum limit.

  • The expected rate of return on INPCs of different tenors are the same as being offered on conventional NPCs i.e. 5.5 to 7 percent on USD denominated INPCs and 9.5 to 11 percent on PKR denominated INPCs. There is, however, no guarantee that INPCs will be remunerated on these rates as profits on INPCs will be paid based on the actual results of USD and PKR pools being managed by SPV for issuing the INPCs. The Profit Sharing ratio between SPV as Mudarib and Investors as Rabbul Maal and weightages for different tenors of INPCs have also been notified by SPV and will be updated on monthly basis.

  • Yes, The INPCs can be encashed premature but after one month of investment. The INPCs encashed after one month but before 3 months will be remunerated based on the actual return of the Mudaraba pool. The SPV will however purchase the INPCs from investors at a discounted price based on the redemption table to be notified by SPV. The INPCs encashed after three months shall be remunerated based on the weightages applicable to the nearest completed tenor INPCs. Example: If a 36-month INPC is prematurely encashed before 12 months, the profit shall be calculated based on the weightages applicable to six month INPCs, whereas, the weightages applicable on 12-month INPCs shall be used if redeemed after 12-months. The coupon payments earlier made based on the higher weightages, shall be adjusted by applying appropriate discount on the purchase price to ensure that the investor earns profits based on the weightages of the nearest completed tenor.

  • Yes! If an investor is maintaining his/her FCY Islamic RDA in any approved foreign currency, he/she can invest in USD denominated INPCs. In such cases, the bank will debit the investors’ account by an amount equivalent to the amount of investment requested in USD denominated INPCs by applying the exchange rate prevailing at the time of execution of the transaction.

  • The funds on maturity, on premature encashment, and the profit of periodic coupon payments (where applicable), will be credited in the investor’s Islamic RDA only. In case of a holiday on the periodic profit or principal payment date, the next working day falling after the holiday will be considered the periodic profit date/principal payment date. In such case, no profit will be payable for the period of the holidays.

  • Yes! The return/profits on INPCs are subject to 10 percent withholding tax as full and final settlement of tax liability on INPC profits. The non-resident investors are also not required to file any tax return if their only source of income in Pakistan is profits earned on INPCs.

  • Yes, as per the NPC Rules, 2020, the Certificates cane be pledged as security for raising financing in Pakistan subject to such conditions as may be prescribed by SBP.

  • In case of death of an investor, the payment (principal and profit, if any), will be made to the legal heirs of the deceased investor in accordance with the succession certificate or equivalent documentation in accordance with the law for the time being in force.

  • No, the investor can invest, and redeem the INPCs through digital platform while being abroad.

  • The Certificate will not be automatically reinvested or rolled-over after the maturity date. The customer need to reprocess the investment.

  • In case of death of customer's death, the payment (principal and profit, if any), shall be paid to the legal heirs of the deceased customer in accordance with a succession certificate or equivalent documentation issued by a court of competent jurisdiction under applicable laws.

  • The Certificates are not transferable except if required under the relevant laws.