Senior citizens are an important segment of our society. Their contributions to the country's developments have always been valuable. In recent months, senior citizens have been making representations to the Prime Minister that they should be provided an opportunity wherein they can invest their savings to get higher returns to smooth out their financial constraints.
As part of the government policy to provide social safety nets to the deserving segments of the society the government has already Introduced Pensioner's Benefit Account and the Bahbood Savings Certificates for pensioners and widows respectively.
These schemes are offering comparatively higher return vis-à-vis the rest of the schemes for the general public.
The Prime Minister has been pleased to accommodate the request of the senior citizens and has extended the benefits of the Bahbood Savings Certificates to them.
The senior citizens have now become eligible to invest in the Bahbood Savings Certificates in line with the rules and procedures of this scheme.
This decision will enable the senior citizens to earn more than 2 percentage points higher than the rates offered on schemes of similar maturities for general public.
More than 8 million senior citizens of the country will benefit from this decision.
The government of Pakistan has reviewed the rates of return on various instruments of the national savings in the light of the prevailing interest rate environment in the country.
In the context of this review the government has taken into account its social obligations and as such has kept the rates of return on the schemes for pensioners, widows, senior citizens and small savers unchanged.
Therefore, the return on Pensioner's Benefit Account and Bahbood Savings Certificate (now also available to senior citizens) will continue to attract 10.08 percent per annum.
The savings account will also maintain the present return of 4% per annum.
As regards the schemes available for the general public, a reduction of only 0.5 percent across the board has been made with effect from January 1, 2004.
According to the decision, the return on Defence Savings Certificates, Regular Income Certificates and Special Savings Certificates (Registered)/Special Savings Accounts have been fixed at 7.96%, 7.08%, and 7.27% per annum, respectively for the instruments issued on or after January 1, 2004.
The certificates purchased and deposits made in these schemes prior to January 1, 2004 shall earn profit at the rates prevailing on the respective dates of purchases/deposits.
(Joint Director, National Savings Karachi)
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