Savings mobilisation by NSS witness withdrawal of Rs 62.9 billion in 1QFY20

October 30, 2019 (MLN): Savings mobilisation by the National Savings Schemes (NSS) during 1QFY20 portrays a rather different picture, as it witnessed the withdrawal of Rs 62.9 billion.

The negative savings during the quarter was because of the fact that the investors of Rs 40,000 prize bonds withdrew Rs 204 billion by October 05, out of overall reserve of Rs 259 billion investments in CDNS in these prize bonds.

Investors withdrew this hefty amount on the back of the decision taken by the Federal Government to discontinue prize bonds worth Rs 40,000 denomination to curb the black money.

According to the latest data released by State Bank of Pakistan (SBP) today, savings mobilised under the NSS in September alone amounted to Rs 82.89 billion, which is 135% higher than the corresponding figure for the same month of 2018-19.

During the first 3 months of the current fiscal year, most of the incremental mobilisation went into Regular Income Certificates (Rs25.8billion) and Defense Income Certificates (Rs5.3 billion). While the investment in other saving schemes recorded at Rs 76.5 billion.       

On the contrary, holdings in Prize Bonds and Special Saving Certificates witnessed the withdrawal of Rs 152.29 billion and Rs 18.3 billion respectively during 1QFY20.

While in the month of September, most of the investment was witnessed in Defense Saving Certificates (Rs 50 billion).