The government is reportedly mulling to launch a new saving scheme based on the US dollar which will enable investors to encash saving instruments at future exchange rates.
As per the sources, the new scheme will protect depositors from capital losses emitting from devaluation of the rupee, which has already lost its value by over 50 percent in the last one-and-a-half year.
The proponents of this scheme believe that this step will alleviate the pressure on dollar buying and encourage people to save money in the rupee. The deposits will be received by the Central Directorate of National Savings (CDNS) in Pakistani rupee. The CDNS will issue the dollar-denominated certificates as per the rupee value on the exchange rate of that day.
The profit on investment will be paid in rupee after every six months. The major feature of the scheme is that the profit would be computed on the basis of the prevailing dollar rate on that day. Also, when the scheme will mature, the depositors would receive the principal amount calculated on that day’s exchange rate.
Moreover, the maturity period of the certificate will be three, five, or seven years.
A source in the Finance Ministry has revealed that the proposal has been put forth by the SBP Governor Dr. Reza Baqir. The source also told that the government will review the proposal of the dollar-denominated saving instruments thoroughly before giving approval. A final decision will be given only after due consideration of the proposal.