National Savings dept keeps profit rate unchanged

KARACHI: The Central Directorate of National Savings has kept the rate of return unchanged on popular schemes for the quarter ending on June 30.

The new rate would be applicable for the quarter starting from April 1 and would remain unchanged on Regular Income Certificates, Defence Savings Certificate, Special Savings Certificates and Behbood Saving Certificates.

Zafar Sheikh, Director General of the Central Directorate of National Savings, when contacted, confirmed that there is no change in the rate of return on the savings schemes.

Special savings remains unchanged at 11.6 per cent, Defence Savings Certificates at 12.15 per cent, Regular Income Certificates at 12 per cent and Behbood Certificates at 14.16 per cent. He said strenuous efforts have been made to achieve the target of the current fiscal year of Rs240 billion.

The directorate was able to successfully launch the National Savings Bonds through stock markets fetching Rs3.7 billion despite liquidity crunch in the money market.

According to experts the money market is facing a shortfall of around Rs140 billion and the central bank has been intervening in the money market to improve the liquidity position. In the first eight months of the current fiscal year around Rs149.6 billion has so far invested. During the last fiscal year total investment figures amounted to Rs267 billion.

“We are working on a number of new bonds for the small investors and wanted to introduce in next three months,” he said. Issuance of bonds will not only increase the investment to GDP ratio in the country but would also reduce the reliance of government’s borrowing from the State Bank of Pakistan, Zafar said.

According to the recent statement of the State Bank of Pakistan, while announcing monetary policy, the government as of March 25 has reached Rs1,240 billion, surpassing the target by Rs110 billion.