NSS records Rs368.13bn outflows during 11MFY23

July 05, 2023 (MLN): The cumulative outflows from the National Savings Schemes (NSS) in 11MFY23 were recorded at Rs368.13 billion compared to Rs295.94bn in 11MFY22, registering around 24.4% increase 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 May 2023 alone, investors pulled out Rs26.32bn, compared to the outflow of Rs33.57bn in April 2023, and Rs59.88bn in May 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 11MFY22, the outflows were observed from defense saving certificates, regular income certificates, special saving certificates, and other saving certificates with an amount of Rs38.26bn, Rs104.41bn, Rs80.38bn, and Rs153.05bn, respectively.

On the other hand, prize bonds attracted Rs7.98bn in 11MFY23.

In May 2023, most of the outflows were recorded regular income certificates worth Rs37.38bn.

Further, Rs1.83bn and Rs6.34bn were reportedly outflowed by special savings certificates and defense savings certificates, respectively, while, prize bonds and other saving certificates remained the only attraction as they recorded an inflow of Rs639.6m and Rs18.58bn.

Copyright Mettis Link News