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980722

GOVERNMENT OF PAKISTAN
FINANCE DIVISION
BUDGET WING
(DEBT MANAGEMENT CELL)
****

Islamabad, the 22nd July, 1998

NOTIFICATION

SPECIAL US DOLLAR BONDS RULES, 1998

S.R.O.------(I)/98.- In exercise of the powers conferred by Sub-section (1) of Section 3 of the Foreign Exchange (Temporary Restrictions) Ordinance, 1998 (VII of 1998) and all other powers in this behalf the Federal Government is pleased to make the following rules, namely:-

SPECIAL US DOLLAR BONDS RULES, 1998

1. These rules shall be called the special US Dollar Bonds Rules, 1998.

2. These rules shall apply to the Special US Dollar Bonds issued in the denomination of $100, $1,000, $10,000 and $100,000 for a period of five, seven and ten years from the date of their issue.

3. These bonds shall be available for sale - for a period of sixty days only from the date of issue-of this Notification.

4. The Bonds will be registered Bonds.

Clause 5 and 6 Substituted by Notification 3rd October, 1998

5. Pakistan foreign currency account holders with the scheduled banks shall be entitled to purchase these bonds out of their foreign currency deposits, as -------.

6. These bonds shall be issued to the foreign currency account holders by the respective scheduled banks, each one of which shall be called "Issuing Authority" and each of their offices called "office of issue".

7. The foreign currency bonds and the proceeds thereof, shall be exempt from levy of Wealth Tax for a period of six years and shall enjoy same immunities as are available to the foreign currency accounts under the protection of Economic Reforms Act, 1992 (XII of 1992).

8. The investment made in these bonds and profit earned thereon shall be exempt from the levy of Income Tax and the deduction of Zakat.

9. There shall be no maximum limit for the purchase of these bonds.

10. The face value of the bonds shall be encashable on maturity in US Dollars or Pakistan Rupees at the prevailing official exchange rate.

11. Profit shall be payable on these bonds on completion of each period of six months reckoned upto the date of maturity or encashment whichever is earlier. The profit on these bonds shall be payable at the following rates:-

For bonds of 5 years maturity	6 months’ LIBOR on the day preceding the date of payment.
For bonds of 7 years maturity	6 months’ LIBOR on the day preceding the date of payment 4 1%.
For bonds of 10 years maturity	6 months’ LIBOR on the day preceding the date of payment 4 2%.

11-A

The resident Pakistani Account Holders shall be paid profit in Pak Rupees at official exchange rate prevailing on the date of accrual of profit whereas non-resident Pakistanis shall be paid profit in US Dollars.

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