This marks the fourth upward revision in seven months by the finance ministry.
PHOTO: FILE
The Central Directorate of National Savings (CDNS) announced on Friday the increase in the rates of profit in the range of 96 to 100 basis points on 10 savings schemes under its management.
This was for the fourth upward revision in the last seven months by the finance ministry.
An official at the CDNS told The Express Tribune that the ministry revised the rates to ensure that investors were given a fair rate of profit in line with those for the government’s long-term security papers like Pakistan Investment Bonds (PIBs) and short-term T-bills.
The government has raised the rate of profit on Behbood Savings Certificates by 96 basis points to a 43-month high of 11.88%.
An investor, having invested around Rs100,000 in the certificate on November 1, would receive an annual return of Rs11,880.
Similarly, the government increased the profit rates of Pensioner Benefit Accounts and Shuhada Family Welfare Account; both by 96 basis points to a 43-month high at 11.88%, according to the CDNS.
The upward revision in the savings rates is expected to assist the CDNS in attracting higher investment through the sale of savings schemes.
The CDNS offers the schemes to individual investors and provides the raised funds to the government to help it finance the budget deficit.
New govt has host of options to bridge financing gap
So far, CDNS has raised a total of Rs2.72 trillion through the sale of savings schemes (net of prize bonds) as on August 31, 2018, which comes to 15.67% of the total government domestic debt and liabilities at Rs17.36 trillion, according to the State Bank of Pakistan.
Keeping in view the hardships faced by widows and senior citizens, the Behbood Savings Certificates (BSCs) offering a high rate of return with 10-year maturity were launched by the government on July 30, 2003.
Dollar-denominated bonds to rope in foreign capital: Umar
Initially, BSC was meant for widows only, however, it was decided later by the government to extend the facility to senior citizens aged 60 years and above with effect from January 1, 2004.
It has now further been extended to the disabled holding NIC with disability logo or special minors through guardians with effect from April 23, 2018.
Published in The Express Tribune, November 3rd, 2018.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ