KARACHI: The Central Directorate of National Savings on Thursday announced it has raised the profit rates of national saving schemes to attract investors, who are increasingly losing interest this...
KARACHI: The Central Directorate of National Savings (CDNS) on Thursday announced it has raised the profit rates of national saving schemes (NSS) to attract investors, who are increasingly losing interest this avenue owing to a lower central bank policy rate.
The CDNS in a statement said all the profit rates of bearer certificates had been increased, while profit rates of registered saving certificates stand reduced.
The State Bank of Pakistan (SBP) on June 25, 2020 reduced the key policy rate by 100 basis points to 7 percent. The decision brings the cumulative reduction in the policy rate since mid-March to 625 basis points. Analysts said the CDNS move was aimed at drawing the investors towards safe investment avenue.
As a result, rates of Behbood Saving Certificates, Pensioner Benefit Accounts and Shuhda Family Welfare Account have been reduced from 9.84 percent to 9.96 percent, Defence Saving Certificates from 8.05 percent to 8.11 percent, and Regular Income Certificates from 7.44 percent to 7.608 percent. The CDNS reduced the average profit rate of special saving certificates (registered)/accounts to 7.05 percent from 7.15 percent.
Similarly, short-term savings certificates for 3-, 6- and 12-month have been reduced to 6.80 percent, 6.76 percent, and 6.66 percent from 7.72 percent, 7.36 percent, and 7.30 percent respectively.
The government domestic debt has increased to Rs23.1 trillion by April 2020 as compared with Rs18.53 trillion by April 2019, according to State Bank of Pakistan (SBP).
The CDNS data showed that the investment in saving schemes on account basis increased to Rs844 billion by March 2020 as compared with Rs818 billion in the same month of the previous year. While, the investment through saving certificates increased to Rs2.46 trillion by March 2020 as compared with Rs2.136 trillion in the same month of last year.