Central Directorate of National Savings (CDNS) has generated Rs 223 billion savings (98 percent of the target) through various national saving schemes during the first nine months against a target of Rs 228 billion for the current fiscal year. An official of CDNS said the directorate also achieved Rs 218 billion target of national savings set in financial year 2015-16.
The CDNS will also revisit its profit rates for various savings certificates next month (April). "The instant revision will be made in the backdrop of current market scenario and in accordance with the government's policy to provide market based competitive rate of return to the investors of National Savings," the official said.
The official maintained that directorate revises profit rates after every two months for various saving certificates to benefit its investors especially the widows and pensioners. The CDNS notified upward revision in the profit rates for various saving certificates to benefit its investors especially widow and pensioners in its last revision held on February 1, 2017.
According to the website of CNDS, the current rate for Defence Savings Certificate is 7.54 percent, Special Saving Certificate and Account 6.03 percent, Regular Income Certificate 6.54 percent and Savings Accounts 3.96 percent. The official said the profit rate of return for specialised savings schemes like Bahbood Savings Certificates and Pensioners' Benefit Account were also revised upward in February 1, 2017 and fixed at 9.36 percent to provide safety net to specialised segments of the society.
The official maintained that national savings improved by just 0.1pc to 14.6 percent in 2015-16 compared to 14.5 percent in the preceding year as a percentage of GDP. Pakistan had the lowest savings as a percentage of its GDP in the region, he said.
Former Finance Minister Dr Salman Shah said that national savings schemes were a channel through which the government raised finance and set the rate of profit. "Though investment in saving is risk free and gives good returns, but it has stopped private sector capital market development." He further said that some of its schemes were expensive while others were relatively cheap but it was a government borrowing tool.