National Saving breaks records of Deposits due to increased Rates

[Enlightened10]

Central Directorate of National Savings (CDNS) has achieved a net target of Rs 365 billion by May 16, of the fiscal year 2018-19 as compared to last year’s collection of Rs 129 billion.

The total savings held by the CDNS stood at Rs 1, 701 billion by May 16, while the directorate had Rs 752 billion by the same date, a year ago, a senior official of the CDNS told APP here on Monday.


Due to the rationalization of CDNS certificates’ rates, the directorate has collected more savings than expected; therefore it will increase the set target of Rs 224 billion for May 2019.


The official said the CDNS notified the upward revision in the profit rates for various saving certificates, which has been applicable from January 1, increasing the trend of people investing more at the CDNS.


“The instant revision was made in the backdrop of the current market scenario and in accordance with the government’s policy to provide a market-based competitive rate of return to the investors of National Savings”, the official said.

He said, as per the notification issued by the federal government, the new rates for Defense Savings Certificate, Special Saving Certificate, Regular Income Certificate, Savings Accounts, Shuhada Family Welfare Account have been revised upward at an average of 12.47 per cent, 11.40 per cent, 12 per cent, 8.5 per cent,14.28 per cent respectively.

The official said the profit rate of return for specialized savings schemes like “Bahbood Savings Certificates” and “Pensioners’ Benefit Account” has also been revised upward and fixed at 14.28 per cent respectively in order to provide a safety net to specialized segments of the society.

https://nation.com.pk/27-May-2019/national-savings-collects-rs-365b-by-may16

 

[kakamuna420]

Enjoy riba yeah

 

[Sher_ka_Shakari]

Majority qoum Sood khatey raho aur Allah aur uss k rasool k saath Jang mein Zaleel o ruswa hotay raho hatta k mout thumey aa ley.

Mehnat sey kaam nahin karna kyoon k paisey Waley bohat sey haad Haram mojood Hein.

 

[Scholar1]

Majority qoum Sood khatey raho aur Allah aur uss k rasool k saath Jang mein Zaleel o ruswa hotay raho hatta k mout thumey aa ley.

Mehnat sey kaam nahin karna kyoon k paisey Waley bohat sey haad Haram mojood Hein.

For older people or those who don't have income sources , this 's the only option.
Un employment rate in Pakistan is 40% and business opportunities are almost nil.

 

[Sher_ka_Shakari]

For older people or those who don't have income sources , this 's the only option.
Un employment rate in Pakistan is 40% and business opportunities are almost nil.

Bro, I do know personally and i also understand the people u r referring too, for those people it is the responsibility of the state to take care of them. But Riba is not allowed under any condition, age or circumstances.

 

[Sohail Shuja]

When national savings increase it also means that people are pulling out their working capital out of the market because bank is offering more return on their investments. It also means shrinking of the economy.

Govt needs to take some concrete steps here. After devaluation of PKR against the greenback, the first thing to do is to implement a strict control on the import regime.

Secondly, instead of looking up to increase the interest rates, Govt needs to focus on Public Private Partnership projects in the country. They provide double benefit as the capital which flows in does not count as a debt on the Govt's Balance Sheet and on the other hand, people are not taxed for the recovery of the costs. Only the users who use the facilities pay the cost.

Third is that as in the past, there were some tax free zones like Gadoon Amazai, where production was free from any taxes for up to 10 years. Govt needs to give such incentives to foreign investors.

Fourth should be the promotion of Barter Trade System. In the purview of the global political dynamics, it is becoming increasingly necessary to have an alternate system of trade which does not involve the greenback. You never know how erratically it behaves in the future as the heat is on between US and China in trade and Pakistan stands in the mid grounds of both.

Last, but not the least, I have also said it previously on this forum that though the exploration of Oil and Gas onshore is the need of the time, on the other hand, Govt should also fund projects like Bio-Gas/Bio-fuels and other renewable sources. This will ease up the pressure on the economy and there is no hit and trial problem.

 

[Sohail Shuja]

For older people or those who don't have income sources , this 's the only option.
Un employment rate in Pakistan is 40% and business opportunities are almost nil.

So what the banks/financial institutions are going to do? give the same money to businessmen on higher rates of interests? Is that going to be a solution to mend this economy? I guess it is also a whitewash. The Govt will only soar up the figures on its balance sheet while actually the people are going to face more problems in doing business and a common man will find it harder to make his ends meet due to increased prices, as a consequence of increased interest rates and greater costs of doing business.

 

[Scholar1]

When national savings increase it also means that people are pulling out their working capital out of the market because bank is offering more return on their investments. It also means shrinking of the economy.

Govt needs to take some concrete steps here. After devaluation of PKR against the greenback, the first thing to do is to implement a strict control on the import regime.

Secondly, instead of looking up to increase the interest rates, Govt needs to focus on Public Private Partnership projects in the country. They provide double benefit as the capital which flows in does not count as a debt on the Govt's Balance Sheet and on the other hand, people are not taxed for the recovery of the costs. Only the users who use the facilities pay the cost.

Third is that as in the past, there were some tax free zones like Gadoon Amazai, where production was free from any taxes for up to 10 years. Govt needs to give such incentives to foreign investors.

Fourth should be the promotion of Barter Trade System. In the purview of the global political dynamics, it is becoming increasingly necessary to have an alternate system of trade which does not involve the greenback. You never know how erratically it behaves in the future as the heat is on between US and China in trade and Pakistan stands in the mid grounds of both.

Last, but not the least, I have also said it previously on this forum that though the exploration of Oil and Gas onshore is the need of the time, on the other hand, Govt should also fund projects like Bio-Gas/Bio-fuels and other renewable sources. This will ease up the pressure on the economy and there is no hit and trial problem.

Govt is out of money, they don't have a silver bullet to solve it overnight

 

[Sohail Shuja]

Govt is out of money, they don't have a silver bullet to solve it overnight

This is just an oversimplification of the problem. Whereas the problem is much complex than what meets the eye.
These sort of gimmicks won't last long and actually have a tendency to make your state institutions more indebted to public debt and then eventually crash at some stage.