After achieving the revised investment target of Rs 146 billion set for ongoing current fiscal year, the Central Directorate of National Savings (CDNS) Wednesday announced the launch of ''short-term saving certificates'' and ''student welfare bonds'' in July and August, respectively.
Zafar Sheikh, Chairman CDNS while addressing a press briefing said the ''student welfare bonds'' will be an important source to tap the currency in circulation all over the country and to curtail the inflationary pressure on the economy. "Each series shall contain one less than one million bonds valued at Rs 100 million approximately," Zafar Sheikh added.
The first prize on ''student welfare bonds'' will worth Rs 700,000(one prize), second Rs 200,000(three prizes), third Rs 1000(1199 prizes). The chairman said, "The main purpose behind the launch of short-term saving certificates is the fact that the existing product basket of National Saving Schemes (NSS) comprises of tenure and maturity of medium term ie 3 years to long term ie 10 years.
The scheme was notified in August 2008 and all the arrangements including the printing of certificates were made but for some unknown reasons, the same could not be launched till today. It is expected that Rs 20-30 billion can easily be fetched per annum through this scheme. Individuals, institutions may also invest individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts etc."
While responding to a question asked by this scribe, the chairman said, "CDNS was given the target of collecting Rs 186 billion from investment in various products for the current fiscal year ie 2011-12. The government revised the investment target of CDNS in April 2012 and reduced it to Rs 146 billion. Now, as the end of current fiscal year is approaching, CDNS has surpassed the target by collecting Rs 150 billion from the saving products including the investment of Rs 49 billion made from the prize bonds."
"Unfortunately, Pakistan continues to be categorised among the low savers of South Asian region. The saving rate of Pakistan is 12-13 percent while that of India is 26-27 percent," the chairman added. CDNS has launched a new prize bond of Rs 25,000 in February 2012. "We were hoping to collect Rs 5 billion from investment under this new prize bond but till June 2012, we have collected Rs 20 billion only."
In April 2011, the government decided to bar institutional investment in the NSS while individual funds like pension, gratuity, superannuation, contributory provident funds and trusts, etc, were allowed to invest in NSS. The Economic Co-ordination Committee (ECC) in its meeting dated 06-04-2012 approved the proposal of institutional investment including individual funds such as pension, gratuity, superannuation, contributory provident funds and trusts, etc, in National Savings Schemes. "We have made repayments of Rs 250 billion to those institutions that had made investments in CDNS prior to the directive of the government in April 2011," the chairman said.