CDNS issues Rs1,100bn worth of fresh bonds by June 15

ISLAMABAD: Central Directorate of Nationalgs (CDNS) has achieved the target of issuing Rs1,100 billion worth of fresh bonds from July 1 to June 15 of the current fiscal year 2021-22, a senior official informed APP.

Annual gross target was set at Rs980 billion for fiscal year 2020-21 to promote savings in the country, whereas annual collection target for this period was Rs250 billion compared to Rs352 billion set for FY20 and Rs350 billion set for FY19.

Replying to a question, the official said that the CDNS has decided to start Islamic finance and institution. “In this regard, under Islamic shariah-compliance, prize bonds and savings certificates will be issued for investment in accordance with shariah principles,” he said.

CDNS would provide Islamic investment opportunities to its consumers in an institution like the rest of the private and public sector banks, where Islamic shariah business has now reached 20 percent.

Replying to another question, the senior official said that CDNS has started working to increase new investment opportunities and promote digital investment through many new projects. “CDNS in collaboration with the State Bank of Pakistan (SBP) is developing digital prize bonds, which will be available through online electronic channels,” the official said.

CDNS was in the process of launching its first mobile app for online purchase and encashment of National Savings Schemes. “For better and efficient transfer of funds electronically, the CDNS is going to adopt RAAST in the current month for speedy flow of funds through its financial tributaries,” he added.

Initially, the CDNS has opened three separate accounts in SBP to avoid/stop direct access to the Non-Food Account-1 for its Alternative Delivery Channel (ADC) operations, 1Link Payment, UPI Payment and RAAST payment.

Finance Division would allocate budgetary ceiling on a daily basis and the CDNS would operate within the allocated funds limit.

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

He informed that the CDNS interest rates were linked with the Pakistan Investment Bonds (PIB) policy set by the SBP. “The CDNS had opened new avenues for public and private investment to document the country’s economy and ensure transparency in the financial system.”

Replying to another question on the current revision of profit rates on CDNS certificates, the official said the CDNS had maintained the same interest rate on the savings certificates investment due to the market situation and as per PIB policy decision.