CDNS sets Rs1.5 trillion savings target for FY23

Believes ambitious goal will promote savings culture in country

ISLAMABAD:

The Central Directorate of National Savings (CDNS) has set a savings target of Rs1.5 trillion for the current financial year (2022-23), which will promote savings culture in the country.

“Current market trend and the ambitious target are set to further improve the savings culture,” a senior CDNS official told APP on Thursday.

Replying to a question, he said “the CDNS surpassed its annual target in the previous fiscal year and set a historic record of Rs1,250 billion till June 30, 2022”.

For the first time in history, national savings crossed Rs1,000 billion in fresh deposits and reached Rs1,250 billion. CDNS had set annual gross receipts target of Rs980 billion from July 1 to June 30 in the previous fiscal year.

Answering a question, the senior official said that the CDNS had decided to start Islamic financing and would start procedural work from next month to provide the facility.

In that regard, prize bonds and savings certificates would be issued for investment in accordance with the Shariah principles, he said.

He highlighted that the CDNS would provide Islamic investment opportunities to its customers like the private and public-sector banks as the Sharia-compliant business reached 20%.

In response to another question, the senior official said that the CDNS had started work on increasing investment opportunities and promoting digital investment through many new projects.

CDNS, in collaboration with the State Bank of Pakistan, was developing digital prize bonds, which would be available through the electronic channels, he said.

“It is in the process of launching its first mobile app for online purchase and encashment of National Savings Certificates.”

The official further said that for better and more efficient transfer of funds electronically, the CDNS was going to adopt RAAST in the current month for the speedy flow of funds through its financial tributaries.

Initially, the CDNS opened three separate accounts in the State Bank of Pakistan (SBP) to prevent direct access to the Non-Food Account-1 for its Alternative Delivery Channel (ADC) operations, 1Link Payment, UPI Payment and RAAST payment.

The official informed that the Finance Division would allocate budgetary ceiling on a daily basis and the CDNS would operate within the limit of allocated funds.

Accordingly, the PFM Act 2019 was adopted in its true spirit for the Alternative Delivery Channels of
CDNS.

 

Published in The Express Tribune, July 15^th, 2022.

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