Most of the money saved in National Savings Schemes is by retired govnt servants who have no other source of income.
ISLAMABAD: Following the decrease in interest rate by the State Bank of Pakistan (SBP), the rate of profit on savings schemes of the Central Directorate of National Savings (CDNS), too, will decline and is expected to be cut by 0.25 to 0.50 per cent. It is pertinent to mention here that the government had previously decreased the rate of profit on the national savings schemes by 0.80 per cent two months back. Most of the money saved in the National Savings Schemes is by retired government servants who have no other source of income and by investing their hard-earned money in these schemes, they are making ends meet in the midst of high inflationary trends.
It is a shame on the part of the government and a blot on its credibility because when investments in the schemes decline, it increases the interest rates and when the required targets are achieved, it slashes the interest rates to exploit the depositors. Is there any God-fearing official who can put an end to this official exploitation?
Dr Irfan Zafar
Published in The Express Tribune, October 13th, 2012.
