National saving schemes

Letter November 24, 2022
National saving schemes


A few months ago, the State Bank of Pakistan (SBP) raised its markup rate to 15%. However, until now there has been no corresponding increase in the profit rates of various saving schemes offered by the Central Directorate of National Savings (CDNS).

Even the best schemes offered by National Savings such as the Pensioners Benefit Account (PBA), Behbood Savings Certificates (BSC), etc are currently offering a profit rate of around 14%, which is 1% less than SBP’s markup rate. This is quite unusual since the basic purpose behind the creation of National Savings was to offer a rate of return on its saving schemes better than the prevailing SBP markup rate to the underprivileged segments of society such as pensioners, senior citizens, widows, etc.

Even some regular commercial banks are now offering profit rates of more than 15% to their customers on their saving schemes. Instead of supporting vulnerable groups during this period of extraordinary inflation, they are being deprived of their due share. The relevant authorities must take notice of this discrepancy and ensure that the CDNS increase the profit rates accordingly.

Fuad Enver


Published in The Express Tribune, November 25th, 2022.

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