Owing to higher rates offered on different instruments, the net receipts of National Saving Schemes (NSS) witnessed considerable growth during the fiscal year 2018-19 compared to the corresponding period of last year, State Bank of Pakistan (SBP) reported.
“The net receipts of National Saving Schemes (NSS) surged to Rs225.3 billion, compared to only Rs 48.7 billion recorded in the previous corresponding period,” the SBP said in its latest third quarterly report on The State of Pakistan’s Economy.
This showed an increase of Rs176.6 billion in receipts during July-March (2018-19), according to the report.
Giving break up, the report said that the Defence Saving Certificates (DSC) receipts increased from Rs8.3 billion in FY18 to Rs44.6 billion in FY2019, showing an increase of Rs36.3 billion, the Special Savings Certificates (SSC) receipts increased from minus Rs38.5 billion to Rs33.1 billion, showing growth of Rs71.6 billion whereas the Regular Income Certificates (RIC) increased from Rs1.9 billion to Rs102.9 billion, a growth of Rs100.9 billion.
Similarly, the Behbood Saving Certificate (BSC) receipts increased from Rs32.1 billion to Rs89.5 billion, an increase of Rs57.5 billion.
However, during the period under review, the Special Saving Accounts (SSA) receipts declined by Rs102.9 billion from Rs27.5 billion to minus Rs75.4 billion, Saving Accounts (SA) from 2.2 billion to minus 1.1 billion, hence showing 3.3 billion decrease. The other receipts of NSS increased by Rs16.5 billion, from Rs15.3 billion to Rs31.7 billion, it said.
The major rise was observed only in third quarter where the main contribution was from Regular Income Certificates (RICs), followed by Behbood Saving Certificates (BSCs) and Defense Saving Certificates (DSCs).
According to the report, this increase was due to higher rates offered on these instruments as the Central Directorate of National Savings (CDNS) had increased profit rates on the savings’ instruments under NSS with effective from January 2019
On the other hand, according to the report, the saving and special saving accounts recorded a decline during Jul-Mar FY19.
The Receipts are expected to grow further as the Central Directorate of National Saving (CDNS) has further increased rates on various savings certificates with effect from July 1st, 2019.
“The CDNS notified the upward revision in the profit rates for various saving certificates with effect from July 1st (2019), this would encourage people to invest in various schemes of the directorate,” a senior official of CDNS told APP.
The rate for Defense Savings Certificate has been increased from 12.47 percent to 13.01 percent while the rate of Special Saving Certificate from 11.57 to 12.90, Regular Income Certificate from 12 percent to 12.96 percent.
Likewise, the rates of Savings Accounts have been increased from 8.5 percent to 10.25 percent while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were increased from 14.28 percent to 14.76 percent. The government had also increased the short-term (3 months), medium-term (6 months) and long-term (12months) certificates to attract more people towards savings and investments with CDNS.—APP