APROPOS the news items ‘Dollar demand high in kerb market, dealers tell SBP’ (Feb 1).

The contents of paragraph 7 of the news item are not in conformity with the factual position with regard to the launch of the Overseas Pakistani Savings Certificates (OPSCs).

Please note that the government of Pakistan / Finance Division (through the Central Directorate of National Savings) is not planning to issue the certificates of onshore investors; the proposed OPSCs will only be offered for overseas / non-resident Pakistanis. Therefore, there’s no point in onshore investors “hoarding foreign currency” in anticipation of the issuance of the proposed OPSCs.

At present, the legal and market diligence process to finalise the product structure is underway. Meanwhile, on Feb 10, The US dollar fell on low demand. That also negates the OPSCs theory.

The rate of return on the proposed certificates has not been finalised yet. The products will only be issued once the structures, the launch plan and the rules of the proposed certificates are formally approved by the Finance Division and the federal cabinet.

Finance Division

(Budget Wing)

Ministry of Finance

Islamabad

Published in Dawn, February 23rd, 2018