AIRLINK 66.80 Increased By ▲ 2.21 (3.42%)
BOP 5.67 Increased By ▲ 0.07 (1.25%)
CNERGY 4.63 Decreased By ▼ -0.09 (-1.91%)
DFML 22.32 Increased By ▲ 1.56 (7.51%)
DGKC 69.76 Decreased By ▼ -1.64 (-2.3%)
FCCL 19.62 Decreased By ▼ -0.33 (-1.65%)
FFBL 30.20 Decreased By ▼ -0.25 (-0.82%)
FFL 9.90 Decreased By ▼ -0.15 (-1.49%)
GGL 10.05 No Change ▼ 0.00 (0%)
HBL 115.70 Increased By ▲ 4.70 (4.23%)
HUBC 130.51 Decreased By ▼ -0.33 (-0.25%)
HUMNL 6.74 Decreased By ▼ -0.11 (-1.61%)
KEL 4.35 Decreased By ▼ -0.04 (-0.91%)
KOSM 4.80 Increased By ▲ 0.46 (10.6%)
MLCF 37.19 Decreased By ▼ -0.56 (-1.48%)
OGDC 133.55 Decreased By ▼ -0.30 (-0.22%)
PAEL 22.60 Increased By ▲ 0.03 (0.13%)
PIAA 26.70 Decreased By ▼ -0.85 (-3.09%)
PIBTL 6.25 Decreased By ▼ -0.06 (-0.95%)
PPL 113.95 Decreased By ▼ -1.00 (-0.87%)
PRL 27.15 Decreased By ▼ -0.07 (-0.26%)
PTC 16.13 Decreased By ▼ -0.37 (-2.24%)
SEARL 59.70 Decreased By ▼ -1.00 (-1.65%)
SNGP 66.50 Increased By ▲ 1.35 (2.07%)
SSGC 11.21 Decreased By ▼ -0.14 (-1.23%)
TELE 8.94 Decreased By ▼ -0.03 (-0.33%)
TPLP 11.34 Increased By ▲ 0.09 (0.8%)
TRG 69.36 Increased By ▲ 0.31 (0.45%)
UNITY 23.45 Increased By ▲ 0.01 (0.04%)
WTL 1.36 Decreased By ▼ -0.03 (-2.16%)
BR100 7,312 Decreased By -12.8 (-0.17%)
BR30 24,106 Increased By 48.2 (0.2%)
KSE100 70,484 Decreased By -60.9 (-0.09%)
KSE30 23,203 Increased By 11.5 (0.05%)

ISLAMABAD: The recent increase in profit rates of savings accounts is unlikely to attract investors to products on sale in National Savings Schemes due to high inflation in the country.

This was stated by a source in the Finance Ministry on condition of anonymity by arguing that when inflation is as high as it is today sustaining consumption at current levels to the extent possible is the priority while savings are out of the question.

Data on the State Bank of Pakistan (SBP) website indicates that NSS (net of prize bonds) was Rs 3,480 billion in February 2022 declining to Rs 2,948.2 billion in January 2023 and to Rs 2,915.7 billion by February this year.

NSS: Profit rates increased

The official from the Finance Ministry further contended that there are no signs of a possible decline in inflation in the coming months and acknowledged that the government is the sole borrower from NSS.

Profit rates of NSS schemes are linked to movement of Treasury bills (T-Bills) and Pakistan Investment Bond (PIB) rates he stated adding that the government recently raised returns on existing schemes and is planning to introduce new products of saving schemes to attract investment.

The federal government raised the profit rate on national savings schemes effective on April 10.

Former Finance Minister Dr Hafeez Pasha termed the increase in profit rates of NSS positive for two reasons: it incentivises people to invest their saving and these savings would help create a secondary capital market which is the need of the hour for the benefit of the people.

The rate of profit on Behbood Savings Certificates (BSC) has been increased by 2.64 percent to 16.56 percent and the profit rate on Special Savings Certificates (SSC) has been increased by 3.93 percent to 17.13 percent.

The Regular Income Certificates’ profit rate has increased by 24 basis points to 12.84 percent and the Savings Account (SA) has gone up by 5 percent to 18.50 percent.

The rate of return on Defence Savings Certificates (DSC) has been increased by 2.61 percent to 14.87 percent. After the revision, the federal government raised the profit rate on Shuhada Family Welfare by 16.56 percent, Saving Accounts by 18.50%, Pensioners Accounts by 16.56 percent, as well as for the Short-term Saving Certificates.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Tulukan Mairandi Apr 13, 2023 08:08am
Of course. Everyone know that Pakistan is printing Rupees to pay local debt. It's especially dangerous as the economy is actually contracting, while money supply is increasing. It's only a matter of time before hyperinflation sets in.
thumb_up Recommended (0)
Naveed Iqbal Apr 13, 2023 03:09pm
How cruel it is that those people, especially seniors,who have invested their OWN hard earned money,get return bearing such a rate that goes unchanged for years together. On the other hand the pension paid by the govt from its own resources increases every year. Irony of the equilibrium. Will someone at the helm of affairs look into the matter.
thumb_up Recommended (0)
Naveed Iqbal Apr 13, 2023 03:15pm
How cruel it is that the people, especially, senior citizen, get the return on their OWN investment at a rate which remains unchanged for years together. On the other hand the pension paid by the govt from its own resources increases every year. Irony of equilibrium. Will someone at the helm of affairs look into the matter.
thumb_up Recommended (0)
Azhar Apr 14, 2023 09:05am
Good action but the limts of Rs. 5 millions on Bahbood and Pensioners Benefit be increased to Rs. 10 millions
thumb_up Recommended (0)