Interest rates on popular savings schemes like public provident fund and national savings certificates
have also been lowered, which can reduce the attractiveness of these schemes.
In another move, the government has increased income tax on profits earned by non-filers from the national savings certificates
by 100 percent to push up the number of filers of returns.
About seven million investors would receive a risk-free return of 11.3pc on government securities through National Savings certificates
KARACHI -- People in general here on Thursday appreciated government decision to increase profit rates for its series of saving plans, commonly known as National Savings Certificates
. Behbood certificates meant for pensioners and families of the martyrs, under the latest announcement, would have a new profit rate of 14.76% which for many of the families will certainly be quite a relief against growing inflation.
The government has decided to increase profit rates on its series of savings plans commonly known as National Savings Certificates
. After the latest announcement, the certificates will have an interest rate of 14.76pc.
The PM's investment in the National Savings Certificates
stands at Rs 7,61,466 while his life insurance policy investment stands at Rs 1,90, 347.
CDNS, which offers national savings certificates
to individuals in order to attract investment, provides the raised funds to the government.
Finance Minister AMA Muhith held a meeting with Governor of the Bangladesh Bank, Finance Secretary, Auditor General of Bangladesh, Director General of National Savings Certificates
, representative of the National Board of Revenue and relevant stakeholders at the secretariat on Tuesday.
Government announced up to 1.09 percent increase in rates of returns for national savings certificates
, breaking a 14-month spell of unchanged profit margins for the investment avenues mainly tapped by low-income groups.
The government has already appointed a Dubai-based Karachi advisory firm Dar Al Sharia to replicate Islamic financial model for the conventional national savings certificates
. The official said the ministry of finance hired the advisory and consultancy services provider to launch and sell Shariah-compliant products from the proposed Islamic window.
They called on the authorities to reduce the increasing reliance on high-cost National Savings Certificates
as a financing vehicle for the government budget.
They stated that Pakistan Post is doing Saving Bank work as an Agent of Ministry of Finance on commission under Saving Bank Act, 1873, while saving certificates are issued under Post Office National Saving Certificate Act, 1917, and Post Office National Savings Certificates