ISLAMABAD, May 31: The government would introduce new rules and regulations for national saving schemes (NSS) within a couple of weeks to contain misuse of these schemes by certain quarters.

Finance minister Shaukat Aziz said there were indications that people were borrowing from the banks and investing in national savings schemes because of their higher rate of return.

Speaking at the launching of Automation Project of the National Savings Organization here on Saturday, the minister said the State Bank of Pakistan (SBP) has sent inspection teams to the banks to examine the situation and come up with new measures and rules and regulations to address the problem.

He said the saving schemes was the most expensive way of borrowing but the government was doing a service and was even providing higher rates of return to the pensioners, retirees and people with limited income to protect their investments.

He said that the interest rates were coming down but the government would protect these investments and may expand the social base of these schemes to create a balance between the social responsibilities and borrowing rates. He said the schemes would be redesigned, re-energized and new products would be introduced shortly.

Sources said there were reports that people have been borrowing from the normal banking system because of lower interest rates and investing in NSS which have at least 2 percent higher rate of return.

Earlier, he told reporters that Pakistan has asked the United States to write off $1.8 billion bilateral debt and the issue would be raised again during the visit of President Musharraf next month.

“We are not going there with a begging bowl”, he said when asked whether Pakistan would ask for $10 billion compensation. However, responding to the next question he agreed that Pakistan was asking for $1.8 billion debt write off.

“We are asking them to set it aside ($1.8 billion debt) one way or the other”, he said. The discussion has already started, he added.

The minister said the matter of debt write off would be definitely discussed during the President’s visit. He would accompany the President during visit to the US in June.

He said he would talk to Alan Larson, the US under secretary of state for economic and business affairs on Sunday on the subject again. He did not agree that Pakistan was asking for $10 billion compensation from the United States for its cooperation in the post 9/11 period.

He said it was even beyond one’s thinking capacity to believe Pakistan lost $10 billion which was 1/6 of Pakistan’s total GDP.

Asked then how the US Central Command gave the $10 billion figure as loss to the Pakistan economy, the minister said “what they know about Pakistan’s economy” and then added “perhaps it was a typo” (typographical mistake).

Responding to another question, the minister said the summary on budget date was lying with the prime minister who was currently in his hometown Rojhan Jamali and would be back perhaps on Monday.

He said the budget date would be confirmed only on the return of the prime minister. He said the economic survey would be launched next week but date was not final as yet.