Non-Resident Pakistani Rupee Value Accounts introduced for Overseas Pakistanis

KARACHI: The State Bank of Pakistan (SBP) launched ‘Non-Residential Pakistani Rupee Value Accounts’ (NRVA) enabling Overseas Pakistanis to invest in residential and commercial real estate and stock exchange, etc.

In addition, NRVA allows overseas Pakistanis to invest digitally in Government of Pakistan (GoP) debt securities and term/remunerative deposit products of Authorized Dealers (ADs) on repatriable basis.

Foreign nationals other than those with a work visa/permit to work in Pakistan, and firms or companies incorporated or registered outside Pakistan will be able to make use of the NRVAs.

Under this initiative, the Authorized dealers have been directed to enable operations in the account through digital channels such as mobile banking, ATM or debit cards. The supplementary ATM or debit cards may also be issued as per banking practices.

As per regulations, the authorized dealers may also issue cheque books if required.

Moreover, the overseas Pakistanis will be permitted to open joint accounts with other residents and non-residents as per banking practices and laws, by the Authorized Dealers. These accounts, however, will be termed and treated as non-resident accounts.

Transfer of funds from holders’ Foreign Currency Value Account (FCVA), any remittance received from foreign banking channels or other NRVAs registered with the same authorized dealer, income from disinvestment, and sale or maturity of assets in Pakistan will be the allowed source of credit in the NRVAs.

To further facilitate the overseas Pakistanis, the authorized deals have been instructed to set up a mechanism that allows the account holders to reactivate their account digitally.

The NVRAs allow the overseas Pakistanis to make payments to any desired person and withdraw funds in Pakistani rupee. However, an amount paid will not be allowed to be credited back into the account.

The remittances and payments outside Pakistan are to be limited to the extent of balance available in the account. Prior approval from the bank or the SBP will not be needed by the account holder except in the case of investment in real estate.

The minimum period to invest in real estate, set by the SBP is three years. Following the completion of the given period, investors will be able to repatriate the full amount of sale proceeds of the investment in property.

However, in case an investor wants to withdraw before the completion period, they can repatriate funds up to the lower amount of sale proceeds, or the principal investment amount in Pakistani rupee on the date of investment.

 

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