Govt generates Rs20.77b thru NSS instruments

KARACHI - Total mobilization through National Saving Schemes (NSS) surged to Rs20.77 billion during March 2010, compared with Rs14.84 billion last month (February) this year. In the single month of February 2010, the NSS collections saw an increase of Rs5.936 billion, which scaled up the growth in savings to 28.57 per cent during the same month under review. The breakup of domestic savings mobilized by NSS under the Central Directorate of National Savings revealed that in February 2010, the NSS collected Rs 1.213 billion on DDC (Defence Saving Certificate), Rs3.662 billion on RIC (Regular Income Certificate), Rs4.907 billion on SSC (Special Saving Certificate), Rs5.366 on Prize Bonds and Rs8.054 billion were built up through different ranges of NSS in the reported month of the current year. It may be mentioned that the CDC has reduced 1-2 per cent profit rates from April 01, 2010. In this backdrop, experts are seeing more cut in the returns by the concerned authority in the days to come that would affect the growth of the saving industry. Since October 2009, the saving schemes has been attracting huge flows on account of investors efforts to lock in their funds at higher profit rates before any downward revision in the profit rates in the second half of the last fiscal year. Also during Jul-JanFY09 the massive encashment to jump toward the higher profit rates further boosted the gross receipts and lowered the net receipts. It may be recalled that the rate of return on the three-year Special Savings Certificate has been reduced to 13.20 from 14.53 per cent and on the five-year Regular Income Certificate to 13.60 per cent from 15 per cent. The interest rates on Bahbood savings certificates, meant for widows, pensioners and senior citizens, has been reduced to 16.1 from 16.8pc.

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