National Savings collects target of Rs340 billion by May 31

ISLAMABAD: The Central Directorate of National Savings (CDNS) has achieved a collection net target of Rs. 340 billion in the last 11 months of the current fiscal year by May 31.

CDNS has set Rs. 352 billion annual collection target for the year 2019-20 as compared to Rs. 350 billion for the previous year's 2018-19 to enhance savings and promoting saving culture in the country, a senior official of CDNS told APP here on Wednesday.

The directorate has also revised and increased the gross target of Rs. 1570 billion for the fiscal year 2019-20, he said.

The senior official said due to the rationalization of CDNS certificates' rates, the directorate had collected more savings than expected, therefore CDNS revised its target upward from Rs. 224 to 324 billion for FY 2018-19.

Replying to a question on current revision of CDNS certificate profit rates applicable from June 02, 2020, he said CDNS has reduced the interest rate by 1 percent on the savings certificates investment due to lower rates of Pakistan Investment Bonds (PIB).

He informed that the CDNS interest rates are linked with the policy of PIB, set by State Bank of Pakistan (SBP).

Replying to a question on the reduction of CDNS profit rate, he said the rate of return on ‘Behbood Savings Certificates’ (BSC) reduced from 10.32 to 9.84 percent and as similarly Pensioner Benefit Accounts (PBA) recorded downwards from 10.32 to 9.84 percent.

The profit rates on ‘Shuhada Family Welfare Account’ also reduced from 10.32 to new rates of 9.84 percent applicable from June 02 of this year, he said.

He said the profit rates on ‘Defense Savings Certificates’ (DSC) was also reduced from 8.54 to 8.05 percent and interest rates on ‘Regular Income Certificates’ also downwards 8.28 to 7.44 percent according to the current market situation.

He informed that the profit rates on Special Savings Certificates (Registered)/Accounts was also reduced on all three categories of certificates from 1-5 Profit 8.00 to 7.10 percent, 6th Profit 8.60% 7.40 percent and Average 8.10 to 7.15 percent by June 02 , 2020.

The senior official said the Short Term Savings Certificates profit rates also reduced on different categories on months on month bases by 3- Months from 7.80 to 7.72 , on 6- Months certificates 7.50 to 7.36 percent and on 12-Months slightly increased from 6.95 to 7.30 percent.

He said the profit rates on Savings Account (SA) had also been reduced from 7.00 to 6.50 percent decided by last meeting held in Ministry of Finance.

Replying to a question, he said CDNS did not accept institutional investment, but only individual investment was encouraged to deposit for saving in the National Savings.