August 2, 2019: The Directorate of National Savings (CDNS) has set Rs.350 billion annual net target for the year 2019-20 as compared to Rs. 324 billion for the previous year’s 2018-19, to enhance savings and promoting saving culture in the country.
The Directorate has also revised and increased the gross target of Rs 1570 billion for fiscal year 2019-20, senior official of CDNS said on Friday.
Replying to a question, he said that CDNS had collected Rs 410 billion by June 30, 2019 exceeding the target of Rs 324 billion set for the year while during the preceding year of 2017-18, CDNS collected Rs155 billion.
The total savings held by the CDNS stood at Rs 1,150 billion by June 30, while the directorate had Rs 774 billion savings by the same date, a year ago, he said.
He said that due to the rationalization of CDNS certificates’ rates, the directorate had collected more savings than expected; therefore CDNS revised its target upward from Rs 224 to 324 billion for FY 2018-19.
The Central Directorate of National Saving (CDNS) has already increased rates on various savings certificates aimed at promoting savings culture in the country.
“The CDNS notified the upward revision in the profit rates for various saving certificates with effect from July 1st (2019), encouraging people to invest in various schemes of the directorate,” he said.
The official was of the view that the upward revision of these certificates would generate more revenues that could be utilized as budgetary support by the government to overcome budget deficit problems.
He informed that the new rate for Defense Savings Certificate has been increased from 12.47 percent to 13.01 percent while the rate of Special Saving Certificate from 11.57 to 12.90, Regular Income Certificate from 12 percent to 12.96 percent.
Likewise, the rates of Savings Accounts have been increased from 8.5 percent to 10.25 percent while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were increased from 14.28 percent to 14.76 percent.
He informed that the government had also increased the short-term (3 months), medium-term (6 months) and long-term (12months) certificates to attract more people towards savings and investments with CDNS.
He said that the new rates for short-term certificates have been increased from 9.8 percent to 12.08 percent, medium-term from 9.88 percent to 12.18 percent while the rate of long-term certificate has been enhanced from 9.98 percent to 12.28 percent.
“The instant revision was made in the backdrop of current market scenario and in accordance with the government’s policy to provide a market-based competitive rate of return to the investors of National Savings”, the official said.
Replying to another question, he said the directorate has restricted the sale and purchase of Prize bond of Rs 40,000 and now the customers would cast the particular bond form any bank or convert with any bonds of National Savings including Defense Savings Certificate (DSC) and Special Savings Certificate (SSC).