Prime Minister Imran Khan Thursday admitted that Pakistan was going through the ‘toughest circumstances’ as it was facing huge current account and fiscal deficits.
“During last five months, I have come to know the actual problems and potential of the country,” the prime minister said while addressing the launching ceremony of Pakistan Banao Certificate.
The certificate has been launched to attract investment from overseas Pakistanis in order to help strengthen the country’s economy. Under the dollar-based financial instrument, the first-of-its-kind floated by the present government, the expatriate Pakistanis have been offered 6.25% to 6.75% rate of return per annum on a minimum investment of US $5,000 and multiples for a period of three and five years respectively.
Addressing the ceremony, the prime minister said the government had the options of either approaching the International Monetary Fund (IMF) or seeking support from the friendly countries. “The IMF conditions were tough which could have adverse repercussions for the masses in the form of inflation,” he said. Terming the corruption and incompetence as real factors behind the situation, Imran Khan called for the need to enhance productivity by using modern technologies to support the national economy. He said the country would be made self-dependent without letting it to be dragged in others’ wars.
The prime minister urged the Pakistani expatriates to fully support the initiative by purchasing the bonds to steer the country out of economic crisis along with earning the profit. He said Pakistan could become a role model for the developing world once the ongoing efforts by the government came to fruition.
Lauding the efforts of the finance minister and the State Bank governor, the prime minister remarked that the Pakistan Banao Certificate should have been launched earlier to attract investment from expatriates. He said the bond offered return in dollar denomination, but urged the expatriates to get the profit in rupee to support the national currency.
Recalling his previous interactions with the expatriates during his cricketing era, the prime minister said they had immense love for their motherland and strived throughout their lives to support their families and serve the country. The overseas Pakistanis always served the country in hours of distress, he said, and recalled and lauded their continuous contribution for construction and operations of the Shaukat Khanum Hospital.
The prime minister strongly advocated the promotion of religious, mountain, historic and modern tourism and believed that the country could earn huge revenue by exhibiting its variety and diversity to the world. He said the government had already relaxed its tourist visa regime and resolved to bridge the current account deficit through tourism.
He said Pakistan was a virgin territory for the investors as around 120 million of the total population was below 30 to 35 years of age. The government was also bringing ease of doing business besides bringing the administrative reforms, he added.
Reiterating his call for supporting the bond, the prime minister said the uplift of the national economy would also enrich the image of overseas Pakistanis abroad. He said the government would revive the lost dignity of the green passport and the embassies had been instructed to take special care of the expatriates who contribute around $20 billion per annum in the form of remittances. He also urged the expatriates to send remittances through banking channels.
Addressing the ceremony, Finance Minister Asad Umar said the crisis of balance of payment was being overcome through prudent policies. He said the expatriates, being an asset for Pakistan, had been struggling abroad to earn their livelihood as well as contributing to the development of their motherland. He said the certificate would offer better profit rate than that of the banks and would also contribute to improving the national economy. He said two more financial instruments would also be launched by the government to attract investment.
State Bank Governor Tariq Bajwa while highlighting various features of the Pakistan Banao Certificate said there were available in three- and five-year maturities at profit rates of 6.25 percent and 6.75 percent per annum respectively. “Minimum investment size is US Dollars 5,000 with no upper limit. Overseas Pakistanis having a Computerized National Identity Card, National Identity Card for Overseas Pakistanis or Pakistan Origin Card, maintaining their bank accounts abroad can invest in the certificates digitally through a dedicated secure websitewww.pakistanbanaocertificates.gov.pk),” he said.
Further incentives included exemptions from withholding tax and compulsory deduction of Zakat. Investors will also have the option to encash the certificates prematurely in rupee without any deduction.
Published in Daily Times, February 1st 2019.
