CDNS Set to Enter Islamic Finance Market

The National Directorate of National Savings (CDNS) has announced to operate in the Islamic finance market in May 2022, offering Islamic finance services to its customers.

The senior official of CDNS told APP that the directorate will work on Shariah bonds and certificates to provide new opportunities to its customers. The official added that the directorate was to start its work from the current month and would soon provide the facility of Islamic finance in the institution.

The official said that the CDNS would issue prize bonds and savings certificates under the Sharia principles. Like the rest of the private and public sector banks, the directorate will provide Islamic investment opportunities to its consumers, realizing that Islamic banking makes up 20 percent of the sector.

In response to questions from the press, the official said that CDNS had achieved the target of issuing fresh bonds worth Rs. 992 billion in the last 11 months of the current fiscal year. Initially, the target set for FY22 was Rs. 980 billion. However, the target was reached before the deadline.

The senior official said the CDNS had set a target of Rs. 250 billion annual allocations during the current fiscal year as compared to Rs. 352 billion during the previous fiscal year to increase savings. The annual allocation was Rs. 350 billion before the previous fiscal year.

He further informed the plans of CDNS to increase investment opportunities through digitalization. In this regard, the directorate is issuing Digital Prize Bonds, which can be purchased through electronic means. In addition, CDNS is also launching a mobile application to increase digital investments.

For May 2022, the directorate will use RAAST for efficient transfer of funds electronically, said the senior official.

CDNS has opened three different accounts in the State Bank of Pakistan (SBP), 1Link Payment, UPI Payment, and RAAST payment to avoid direct access to the Non-Food Account-1 for its Alternative Delivery Channel (ADC) operations.

The directorate is also to be provided with a budgetary ceiling by the Finance Division, on daily basis, and the CDNS will operate within the allocated funds limit. Consequently, the Public Finance Management Act, 2019 is also being adopted in its true spirit for the ADCs of CDNS.

Finally, the official informed that the interest rate of CDNS was linked with the Public Investment Board (PIB) policy set by the SBP, and the directorate had provided new opportunities for public and private investment to document the country’s economy and ensure transparency in the financial system.



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