LAHORE - The National Savings is launching series of new bonds that in addition to the prize money will also be paying regular interest income to the bondholders. Zafar M. Sheikh Director General National Savings Organization (NSO) is expected to formally announce the launch of these bonds during his visit to Lahore Stock Exchange (LSE) on Monday, March 12, 2012.
During the visit, Zafar Sheikh will be meeting LSE’s Board of Directors and senior members of the exchange. The LSE will be presenting an “Achievement Award” to Zafar in recognition of his brilliant leadership and contribution for mobilising savings in the country.
The introduction of these new bond series will be another feather in National Savings and especially Zafar Sheikh’s cap. The recent launch of Rs 25,000 bonds in February caused quite a stir, fetching billions of rupees, as savers stormed in to get hold of these bonds. The first draw of these bonds is scheduled in May 2012. The new series of bonds of Rs 10,000 denominations will come with an additional lucrative feature of paying profit with the opportunity to win prize money.
Additionally, the National Savings is planning to use platform of Stock Exchanges for issuance, listing and sales through the brokers. National Savings and LSE are already in discussion for finalising modalities for this arrangement.
Under the proposed draft arrangement, LSE will also be promoting new bonds as a new listed instrument for which LSE brokers may become sales agents. A final decision on scheme of arrangement is also expected on Monday.
The new Rs 10,000 bonds will be the second attempt of National Savings to use capital market for generating funds. Earlier in its first attempt, NSO successfully launched 3, 5 & 10 years bonds through exchanges, raising more than Rs 3.6 billion. Zafar M. Sheikh took the charge of Director General National Savings in November 2007 and within two and half years has been instrumental in increasing savings from Rs1030 billion to Rs2010 billion ($22 billion), while  helping the government in managing its deficits. Number of branches of the NSO and staff members has also increased to 376 and 3700 respectively, while increasing operational efficiency through computerisation.