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The Gazette of Pakistan
ISLAMABAD, THURSDAY, SEPTEMBER 12, 2000
PART II
Statutory Notification (S.R.O.)
GOVERNMENT OF PAKISTAN
FINANCE DIVISION
(Debt Management Cell)
NOTIFICATIONS
Islamabad, the 11th October, 2000

S.R.O. 734(I)/2000.-- In exercise of the powers conferred by clause (b) of sub-section (2) of section 3 of the Foreign Exchange (Temporary Restrictions) Act, 1998 (IV of 1998), the Federal Government is pleased to direct that the following further amendment in the Special U.S. Dollar Bonds Rules, 1998, namely:-

In the aforesaid Rules, in rule 11, for sub-section (3) the following shall be substituted, namely:-
"(3) If a bond is encashed within the period of one year from the date of issue no profit shall be paid to the bond-holder and any profit paid shall be recovered at the time of encashment of the bond. If a seven-year bond is encashed after three years from the date of issue but within five years of issue, the rate of return shall be the same as that of five-year bond. If a five year or seven year bond is encashed within three years of issue, the rate of return shall be the same as that of three year bond and the excess profit, if paid, shall be recovered at the time of encashment."

[No.F.12(3) DM/99.]

MINISTRY OF FINANCE AND ECONOMIC AFFAIRS
(Finance Division)

S.R.O. 735 (I)/2000.-- In exercise of the powers conferred by section 28 of the Public Debt Act, 1944 (XVIII of 1944), the Federal Government is pleased to make the following rules, the same having been previously published, as required by sub-section (1) of the said section namely:-

PAKISTAN INVESTMENT BONDS RULES, 2000

1. These rules may be called the Pakistan Investment Bond Rules, 2000.
2. They shall come into force at once.
3. They shall apply to the Pakistan Investment Bonds hereinafter referred to as the Bonds, issued by the Federal Government from time to time.
4. The maturity period of the Bonds shall be three, five and ten years.
5. The Bonds shall be issued in multiples of one hundred thousand rupees.
6. The profit on the Bonds shall be paid semi-annually.
7. The Bonds shall not be redeemable before maturity.
8. The Bonds shall be sold by auction to primarily dealers in such manner as may be specified by the State Bank of Pakistan.
9. The coupon rate, maturity wise, shall be announced by the State Bank of Pakistan on each auction. Bidders however shall be allowed to submit their bids at par, discount or premium.
10. The Bonds may be held by individuals, institutions and bodes corporate including banks irrespective of their residential status. The Investment by persons resident outside Pakistan shall be in foreign exchange remitted through the official channels. Such investments shall be eligible for repatriation of the principal as well as periodical profits on the Bonds but the exchange risk shall be that of the investor.
11. The Bonds shall be traded freely in the country's secondary markets and transferable through Subsidiary General Ledger Accounts.
12. The Bonds shall be scriptless and managed through clients. Subsidiary General Ledger Accounts with banks.
13. The Bonds shall be approved security for calculating the Statutory Liquidity Reserve.
14. The Bonds shall be accepted by the banks as collateral.
15. The profit earned on the Bonds shall be liable to tax under the Income Tax Ordinance, 1979 (XXXI of 1979), Withholding tax on the profit earned on the Bonds shall be deducted at the rate of ten percent at source.
16. There shall be no compulsory deduction of Zakat at source and a sahib-e-nisab may pay Zakat voluntarily according to Shariah.
[No.F.2(I)DM/2000.]

Sd/-
M.QAMAR-UZ-ZAMAN FAROOQI
Section Officer (DM).