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ISLAMIC NAYA PAKISTAN CERTIFICATES (INPCs)

For Non-Resident & Resident Pakistanis (with declared assets abroad)

Islamic Naya Pakistan Certificate (INPC) is a Shariah-compliant investment option that is offered to Meezan Roshan Digital & Meezan Roshan Resident Account holders on the basis of Mudarabah. We are pleased to be the only dedicated Islamic bank offering INPC.

This initiative - led by State Bank of Pakistan (SBP), offers investors an opportunity to contribute towards economic growth and prosperity in Pakistan by offering lucrative investment options to Non-Resident Pakistanis (NRPs) and resident Pakistanis (with declared assets abroad).

State Bank of Pakistan (SBP) is the sole custodian of Naya Pakistan Certificate while Meezan Bank is acting as an agent to the same.

Features

Tenure of Investment
Investments are offered for 3 months, 6 months, 12 months, 3 years and 5 years tenure.

Currency of Investment
Certificates are available in Pak Rupee & US Dollar denominations.
(Resident Pakistanis can only invest in USD denominated certificates)

Minimum Investment
US Dollar Denominated Certificates Minimum investment of USD 5,000 and USD 1,000 multiples thereon.
PKR Denominated Certificates Minimum investment of PKR 100,000 and PKR 10,000 multiples thereon.

Underlying Islamic Mode

Investors will enter into a Mudarabah contract for investment of their funds in Shariah-compliant INPCs with the INPC Company Limited. The investor is the Rab-ul Maal and the Islamic NPC Company Limited is the Mudarib.

Profit & Loss Mechanism

The Islamic NPC Company Limited (Mudarib), will share the profit with investors on the basis of a predetermined percentage of the distributable profit of the business, called PSR (Profit Sharing Ratio).

All the investors will be assigned weightages based on the features of the INPC held by them, such as tenure, profit payment options and other applicable features for the purpose of calculation of profit.

The PSR & weightages applicable to all INPCs will be announced every month.

Shariah Approval

Islamic Naya Pakistan Certificate’s product structure, underlying agreements and terms & conditions are approved by the Shariah Advisory Committee of State Bank of Pakistan.

Profit Payments Frequency

Tenure Profit Payment
3 Month At maturity
6 Month At maturity
12 Month At maturity
3 Year Bi-Annually
5 Year Bi-Annually

How the Islamic Naya Pakistan Certificate Works

Profit Sharing Ratio (PSR) for the month of November 2020

USD Denominated Certificates
Islamic NPC (as Mudarib): 55% of the distributable income
Investors/Customer (as Rab-ul-Maal): 45% of the distributable income
PKR Denominated Certificates
Islamic NPC (as Mudarib): 35% of the distributable income
Investors/Customer (as Rab-ul-Maal): 65% of the distributable income

Weightages & Expected Return for the Month of November 2020

Tenure For USD Denominated Expected Return* Weightage Assigned
USD 3 Months – Profit payment at Maturity 5.50% 1.70
USD 6 Months – Profit payment at Maturity 6.00% 1.85
USD 12 Months – Profit payment at Maturity 6.50% 2.10
USD 3 Year – Profit payment Bi-Annually 6.75% 2.20
USD 5 Year – Profit payment Bi-Annually 7.00% 2.30
Bank's Investment in the pool 3.00% 1.00
Tenure For PKR Denominated Expected Return* Weightage Assigned
PKR 3 Months – Profit payment at Maturity 9.50% 1.10
PKR 6 Months – Profit payment at Maturity 10.00% 1.20
PKR 12 Months – Profit payment at Maturity 10.50% 1.25
PKR 3 Year – Profit payment Bi-Annually 10.75% 1.27
PKR 5 Year – Profit payment Bi-Annually 11.00% 1.30
Bank's Investment in the pool 8.25% 1.00

Actual Profit Return for the Month of October 2020

Tenure For PKR/USD Denominated PKR Actual Return USD Actual Return
3 Months – Profit payment at Maturity 9.51% 5.49%
6 Months – Profit payment at Maturity 10.01% 5.99%
12 Months – Profit payment at Maturity 10.49% 6.51%
3 Year – Profit payment Bi-Annually 10.77% 6.74%
5 Year – Profit payment Bi-Annually 11.01% 7.01%
Bank's Investment in the pool 8.24% 3.04%

Note : As per the rules of Mudarabah, expected rates should not be considered as profit rate confirmation or guarantee. Expected profit rates are given to provide an idea to the investors. Actual profit rates will be calculated in line with the Islamic principle of Mudarabah, based on the actual financials of the month.
The profit on INPCs will be subject to deduction of tax in accordance with the applicable laws.
All investment requests of INPCs (PKR & USD) received within the cut-off time of 1:00 pm Pakistan Standard Time (PST) shall be invested on the same day. Requests received after 1:00 pm Pakistan Standard Time (PST) will be invested on the next working day subject to availability of funds in investor’s account.

Procedure for Periodic payments

Payment of profits earned against (INPCs) shall be made on 6-month basis. It will be applicable on INPCs of 3-year and 5-year maturities in both PKR & USD.

Profit payments shall be determined from the date of issuance of the certificates. For example: if certificates are issued on November 10, 2020, the profit payments shall be made on May 10, 2021 and on subsequent 6-monthly dates accordingly.

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.

Premature encashment

Certificate holders can make early redemption/premature encashment of their INPCs after one month of issuance.

Profit/proceeds for premature encashment request made after one month and before three months will be redeemed at a discounted price by applying a discount in the profit rates for that category.

Profit/proceeds of premature encashment made after three months shall be worked out based on the weightages applicable to the nearest completed tenures.