RECORDER REPORT

ISLAMABAD: Secretary Finance Dr Waqar Masood has stated that profit on National Saving Schemes has not been reduced and government is giving 9.12 percent profit on pensioners’ benefit accounts and Behbood Saving Certificates.

He stated this during a meeting of Senate standing Committee on Finance chaired by Saleem Mandviwalla here Wednesday. The committee expressed serious concern over the reported low rate of profit on National Saving Schemes and wanted to take a briefing from the Finance Ministry on a public petition.

The Secretary Finance stated that the rate of profit of national saving accounts is 3.84 percent. Dr Waqar said he will be happy to submit a detailed report on profit rates of National Saving Schemes to the Finance Committee. The meeting was informed that the profits on NSSs are fixed on the basis of 95 percent of the weighted average yield of Pakistan Investment Bonds (PIBs) for medium and long-term saving schemes. The rates of profit on short-term saving certificates are linked with 95 percent weighted average yield of Treasury Bill of respective maturities. The committee was further informed that rates of saving schemes are reviewed after two months keeping in view the increase or decrease in discount rates announced in the monetary policy by the State Bank of Pakistan. The Finance Ministry added that the rates of profit on pensioners benefit accounts and Behbood Saving Certificates are meant for pensioners, widows and senior citizens and are 2 percent higher as compared to other saving schemes of same maturity. The investment limit in both these schemes have been enhanced from Rs 3 million to Rs 4 million with effect from July 1, 2015 and Rs 5 million from the current financial years.

Mandviwalla said he received a request from the government with respect to deferment of a briefing on the “Qarz-e-Hasana” government borrowed from different segments for “Qarz-Utaro Mulk Swanro Scheme,” till next meeting.