How to Invest in NPCs Shariah Compliant Version?

Muhammad UsmanMultimedia Journalist

12th Nov, 2020. 11:52 pm

NPCs are based on a Mudaraba structure whereby the investor invests in a Mudaraba pool that is used to extend financing to the Federal Government. Investment is remunerated from the profits earned by this pool. For this purpose, the Federal Government has created a Limited Liability Company fully owned by it.

This company is housed and managed by the State Bank of Pakistan (SBP) on the basis of a mandate given by the company’s Board.

Here is how you can invest in NPCs.

Open a Roshan Digital Account

  • Non-Resident Pakistanis (NRPs) can invest in NPCs through their Roshan Digital Account which they can open online in a completely presence-less manner, without the need to visit any bank branch in Pakistan, or an embassy or a consulate. The account can be opened in PKR or foreign currency, or both. (Click here for details on how to open an account)
  • Resident Pakistanis who have declared assets abroad with FBR can invest in USD-denominated NPCs. To do so, they can open a Roshan Digital Account in foreign currency by visiting a bank branch in Pakistan. (Click here for details)

2 Transfer Funds in Your Account

  • After opening your Roshan Digital Account with the bank of your choice, you will remit funds from outside Pakistan through normal banking channels.
  • Using the funds in your account, you can invest in NPCs.

3 Choose the NPC and Subscribe

  • You will be able to subscribe to the certificate electronically using your bank’s online portal.
  • You will need to select the currency (PKR or USD), tenor (3-month, 6-month, 1 year, 3 years, and 5 years), conventional or Shariah-form, and the amount to be invested.
  • The PKR-denominated NPCs can be purchased from the balance in your PKR Roshan Digital Account.
  • The USD-denominated NPCs can be purchased from the balance in your foreign-currency Roshan Digital Account. If you have a foreign-currency Roshan Digital Account in a currency other than USD, your bank will debit your account by applying the exchange rate prevailing at the time of execution of the transaction.
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