National Savings plans closure of 111 centres

Branch network to be reduced from 374 to 263 as govt seeks to cut operating costs

ISLAMABAD:

The federal government has declared 111 National Savings centres inefficient and financially unsustainable, proposing their closure or merger with nearby operational centres as part of a plan to rationalise the organisation's branch network.

The National Savings has issued a notification in this regard, under which the number of National Savings centres will be reduced from 374 to 263. According to the notification, an operational expenditure benchmark of Rs2,500 has been fixed for every Rs1 million in deposits at the centres.

The 111 inefficient centres have been directed to prepare practical plans either to reduce their operating costs or increase their business and deposits to improve their performance.

The notification said the affected centres could prepare plans to increase business and deposits to become more financially viable. Another option under consideration is relocating inefficient centres to areas with greater business and investment potential.

In case of relocation, regional directorates will submit business and relocation plans within 15 days. The notification stated that if a centre was closed, details of all employees posted there, along with their residential locations and preferred places for alternative posting, would have to be provided.

The Central Directorate of National Savings is a state-owned savings bank, operating as an attached department under the Finance Division, Ministry of Finance led by a director general.

The National Savings serves as an intermediary that raises funds from individual savers to help finance the government's fiscal deficit through non-bank means.