National Savings Organisation launches new schemes

National Savings Center

KARACHI: National Savings Organisation announced two new schemes for short term and small savers particularly students on Monday.

A short-term scheme with the taxonomy of Short-Term Savings Certificates (STSC) is introduced to promote the saving rate and to control the currency in circulation.  Due to the acute liquidity position and demand for short-term paper in the financial market, it is expected an amount of Rs 20-30 billion can easily be fetched per annum through this scheme. Students Welfare Bond (SWB), which bears the denomination of Rs 100 will be available at all saving centres, State Bank of Pakistan and commercial banks by August 2012 as legal requirements are currently being completed, said Zafar Shaikh, Director-General of National Savings.

In this scheme the first prize will carry an amount of Rs 700,000, second prize (three prizes) will carry Rs 200,000 each. The third prize (1,199 prizes) will be of Rs 1,000 and can be claimed at National Saving Centres, post offices and scheduled banks. The minimum investment would be of Rs 100. The new scheme would be an important source to tap currency in circulation and to curtail the inflationary pressure on economy. It would not only reduce dependency of the government on external borrowings and banks but would also help students meet expenses incurred on their studies.

The rate of return would be announced on monthly basis. However, in case of any abnormal change in the interest rate scenario, the rate can immediately be reviewed. The payment of profit would be on the basis of maturity of STSC. STSC will be issued in the denominations of Rs 10,000, Rs 50,000, Rs 500,000, Rs 1000,000, Rs 5000,000 and Rs 10000,000. Minimum investment limit has been fixed at Rs 10,000. Individuals and institutions may invest individual funds, such as pension, gratuity, superannuation, contributory provident funds and trusts etc.  -Dailytimes