May 16, 2023 (MLN): The cumulative outflows from the National Savings Schemes (NSS) in 9MFY23 were recorded at Rs308. billion compared to Rs86.40bn in 9MFY22, registering around a four-fold surge in the outflows over the period, the latest data released by the State Bank of Pakistan (SBP) revealed.
This surge in savings outflows may be attributed to the deteriorating economic conditions of the country wherein the purchasing power of the people took a bad hit. People are forced to fulfill their basic needs by utilizing their savings.
Moreover, registration requirements for prize bonds of higher denominations and strict implementation of anti-money laundering laws, and know-your-customer (KYC) conditions have also had a negative impact on fund mobilization.
In the month of March 2023 alone, investors pulled out Rs22.5bn, compared to the outflow of Rs32.38bn in February 2023, and Rs1.10bn in March 2022.
To recall, the NSS witnessed a huge outflow of Rs358.68bn, and Rs317.3bn in FY22 and FY21, respectively, whereas, in FY20, the inflows of Rs372.5bn were recorded which was the second-highest annual mobilization achieved in the 17-year period.
During 9MFY22, the outflows were observed from defense saving certificates, regular income certificates, special saving certificates, and other saving certificates with an amount of Rs27bn, Rs35bn, Rs77bn, and Rs176.22bn, respectively.
On the other hand, prize bonds attracted Rs7bn in 9MFY23.
In March 2023, most of the outflows were recorded from other saving certificates and regular income certificates worth Rs8.96 bn and Rs8.23bn, respectively.
Further, Rs5bn and Rs373mn were reportedly outflowed by special savings certificates and defense savings certificates, respectively, while, prize bonds remained the only attraction as it recorded an inflow of Rs133.4mn.
