Net receipts of NSS climb threefold to Rs225.3 billion in FY2019

ISLAMABAD: Net receipts of National Saving Schemes surged more than threefold to Rs225.3 billion during the last fiscal year of 2018/19 owing to higher rates offered on different instruments, the State Bank of Pakistan (SBP) reported. The NSS’s net receipts amounted to Rs48.7 billion a year earlier.

The SBP, in its latest third quarterly report on the state of Pakistan’s economy, said defence saving certificates’ receipts increased to Rs44.6 billion in FY2019 from Rs8.3 billion in FY2018, showing an increase of Rs36.3 billion. Receipts of special savings certificates rose to Rs33.1 billion from minus Rs38.5 billion, showing a growth of Rs71.6 billion. Net receipts of regular income certificates increased to Rs102.9 billion from Rs1.9 billion, showing a growth of Rs100.9 billion.

Likewise, receipts of Behbood saving certificate increased to Rs89.5 billion from Rs32.1 billion, depicting an increase of Rs57.5 billion.

Receipts of special saving accounts, however, declined Rs102.9 billion to minus Rs75.4 billion from Rs27.5 billion. Saving accounts’ receipts fell Rs3.3 billion to minus Rs1.1 billion from Rs2.2 billion. Receipts of other NSS certificates increased Rs16.5 billion to Rs31.7 billion from Rs15.3 billion.

The major rise was observed only in third quarter where the main contribution was from regular income certificates, followed by Behbood saving and defense saving certificates.

The SBP’s report said the increase was due to higher rates offered on the saving instruments as the Central Directorate of National Savings (CDNS) increased profit rates on the saving instruments with effect from January 2019.

Saving and special saving accounts recorded a decline during the July-March period of last fiscal year. Receipts are expected to grow further as the CDNS further raised rates on various savings certificates with effect from July 1, 2019.

The increase in profit rates would encourage people to invest in various schemes of the directorate, a senior official of the CDNS told APP.

The rate for defense savings certificate was increased to 13.01 percent from 12.47 percent, while the rate of special saving certificate rose to 12.90 percent from 11.57 percent, and rate of regular income certificate was pushed up to 12.96 percent from 12 percent.

Likewise, the rates of savings accounts were increased to 10.25 percent from 8.5 percent, while the rates of Bahbood savings certificates and pensioners benefit account were increased to 14.76 percent from 14.28 percent.