The Directorate of National Savings to offer “Shuhadas Family Welfare Account (SFWA) similar to the rate of profit paid to subscribers of Behbood Saving Certificates and Pensioners Benefit Accounts, currently offering nearly 10.08 percent per annum, said Zafar Masud, Director General of Central Directorate of National Savings (CDNS) to The News.
The rates of all the savings products offered are linked to long-term bonds or Pakistan Investment Bonds, whatever changes occur in these government securities, our products work on same direction, expect for these welfare products including SFWA, whereby their investments are protected against any fall in interest rates, he said. Any increase in interest rates will result in automatic increase in the profit rates of SFWA currency investments whilst any decrease will not impact these investments, he elaborated.
Share of existing welfare schemes, i.e. Behbood Savings Certificate (BSC) and Pensioners Benefit Accounts (PBA) has been 30 percent or nearly Rs 1.033 trillion of total portfolios.
The theme of CDNS has been to mobilize funds for the vulnerable segments, like retired officers, widow, orphans, housewives through which whatever social security could be provided through minimum investment.
Currently, the size of National Savings has been around Rs 3.516 trillion while the deposit size at banks is in excess of little Rs 11 trillion.
All the preparation has been done and this unique account has been rolled out after great deal of work and efforts to start functioning across the country, he said.
In order to give maximum benefit to family members we have received nod from the government, exempting the welfare accounts from withholding tax and zakat on the profit earned by family members, he said.
Pakistan has been engaged in different war fronts and incidents of terrorism have been witnessed throughout the country bringing heavy toll on human life in the past including both the civilians and security forces, Director General said.
Several thousand armed forces personnel and civilians have embraced martyrdom and colossal loss of the lives has added more to the vulnerable segments of the society, i.e. widows and orphans of martyrs.
The new avenue of Shuhadas Family Welfare Account will immediately contribute to the well-being and betterment of shuhadas family members.
Family members of the shuhadas could open account with minimum amount of Rs 10,000 and maximum limit shall be Rs 5 million.
In case of personal and armed forces, paramilitary forces, law enforcement agencies, civilian forces, certificate of martyrdom by the concerned department.
While in case of civilian, a copy of NIC and certificate by the competent authority to the extent that death is due to the terrorist attack or insurgency and compensated/not compensated by the government shall require for opening of account.