The Central Directorate of National Savings (CDNS) has achieved its net collection target of Rs. 112 billion from 1st July to December 20th for the fiscal year 2019-20.
To increase and promote the saving culture in the country, CDNS had set an annual collection target of Rs. 350 billion for the year 2019-20 as compared to Rs. 324 billion for 2018-19.
The directorate has also revised and increased the gross savings target of Rs. 1,570 billion for the fiscal year 2019-20, according to an official.
CDNS had collected Rs 410 billion by June 30, exceeding the target of Rs 324 billion for the year while during 2017-18, a total of Rs. 155 billion was collected. The total savings stood at Rs. 1,150 billion by June 30, 2019, while the directorate had Rs. 774 billion savings by the same date a year ago.
A senior official at National Savings said that due to the rationalization of certificate rates, the directorate had collected more savings than expected, therefore CDNS has revised its target upwards from Rs. 224 to Rs. 324 billion for FY 2018-19.
The official further stated that CDNS has decreased the interest rate on investment bonds due to the current market situation. They were decreased due to lower rates of Pakistan Investment Board (PIB), he said.
“The National Savings interest rates are linked with the policy of PIB set by State Bank of Pakistan (SBP)” he added.
The rates of savings accounts have been decreased from 10.25% to 8.20%, while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were decreased from 14.76% to 12.48%.
The official said that the government had also decided to reverse the short-term (3-months), medium-term (6-months) and long-term (12-months) certificates.
Short-term certificates’ rates have been retained at 12.08 percent, medium-term at 12.18 percent, while the rate of long-term certificates is the same at 12.28 percent.