Rate cut would apply to new investors only.
ISLAMABAD: The government plans to generate Rs240 billion through the National Savings Schemes (NSS) in the new fiscal year 2009-10 and automate 44 of the busiest centres of Central Directorate of National Savings (CDNS) by allocating Rs68 million.
The fiscal deficit target of 4.9 per cent of gross domestic product, equivalent to Rs722.5 billion, depends on resource inflow through domestic and external sources and the NSS, which is targeted to generate Rs240 billion.
Talking to The News, Central Directorate of National Savings (CDNS) Director General Zafar Sheikh was quite confident that after corporatisation of the crucial institution the government would be able to achieve desired results.
CDNS made history by crossing the Rs250-billion mark last fiscal year 08-09, which played a crucial role in meeting the fiscal deficit target of 4.3 per cent. Its figures would be made public after a few days.
“We will ensure automation of 44 busiest centres of CDNS all over the country,” Zafar Sheikh said.
Answering a query about reduction in profit rates from July 1, he said that it would apply to new investors only and existing investors would not be affected by the reduction.
“Pensioner as well as Behbood schemes will be dealt with as a special case,” he said, adding that if the rate increased investors in pensioner and Behbood schemes would also benefit.
Sources have said the government has allocated around Rs68 million for modernising CDNS in 2009-10. Profit rates of NSS will be reviewed on quarterly basis and the next review will be done by September 1.
Despite reducing profit rates for various products offered by the NSS, the finance ministry believes that it could attract the desired amount by promoting investments among the lower middle class, especially pensioners.
“CDNS is going to offer new products in the current fiscal year, paving the way to achieve the desired target,” said the official.
The government has reduced the rates of profit on ‘National Savings Schemes’. According to CDNS, the rates of profit on Special Savings Certificates (Registered)/Accounts, Regular Income Certificates, Bahbood Savings Certificates/ Pensioner’s Benefit Accounts and Savings Accounts have been cut to 11.67pc, 12.00pc, 14.16pc, and 8.50pc per annum respectively.
The rate of profit on Defence Savings Certificates ie, 12.15 per cent pa and the value and number of prizes on prize bonds remain unchanged.
Please click the following link to see profit rates effective from July 2009