ISLAMABAD     -    The Central Directorate of National Savings (CDNS) has collected a net target of Rs20 billion by November 8, of fiscal year 2019-20.

The CDNS has set Rs350 billion annual net target for the year 2019-20 as compared to Rs324 billion for the previous year’s 2018-19 to enhance savings and promoting saving culture in the country, senior official of CDNS told APP here on Tuesday. The Directorate has also revised and increased the gross target of Rs1570 billion for fiscal year 2019-20, he said.

Replying to a question, he said that CDNS had collected Rs410 billion by June 30, 2019 exceeding the target of Rs324 billion set for the year while during the preceding year of 2017-18, CDNS collected Rs155 billion.

The total savings held by the CDNS stood at Rs1,150 billion by June 30, while the directorate had Rs774 billion savings by the same date, a year ago, he said.

The senior official said that due to the rationalization of CDNS certificates’ rates, the directorate had collected more savings than expected; therefore CDNS revised its target upward from Rs224 to Rs324 billion for FY 2018-19.

Replying to a question, he said the CDNS has decreased the interest rate on the investment bonds due to current market situation.

The CDNS interest rates 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)”, said a senior official of CDNS said.

CDNS has decided to change and lower the rates of different Certificates for November 1, 2019, he said.

The Senior official said that the new rate for Defense Savings Certificate has been increased from 13.01 percent to 10.68  while the rate of Special Saving Certificate from 12.90 to 11.13,  Regular Income Certificate from 12.96 to 10.92percent.

Likewise, the rates of Savings Accounts have been decreased from 10.25 to 8.20 percent while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were decreased from 14.76 to 12.48 percent.

He informed that the government had also decided to unchanged the short-term (3mo12nths), medium-term (6 months) and long-term (12months) certificates.

Short-term certificates rates have been retain at percent to 12.08 percent, medium-term at 12.18, while the rate of long-term certificate has been same at 12.28 percent. He said that due to the rationalization of CDNS certificates’ rates, the directorate had collected more savings than expected; therefore CDNS revised its target upward from to 324 to 400 billion for FY 2019-20.

Replying to a question, he said that CDNS investors of Rs 40,000 prize bonds have withdrawn Rs 212 billion by November 8, out of overall reserve of Rs 259 billion investments in CDNS in these prize bonds. After the decision taken by the Federal government, CDNS had discontinued the specific bond by June 24, 2019, he said.

The National Savings is expecting that total amount to be drawn by the investors, would be around to Rs 230 billion by end of November.