The net withdrawal of two billion rupees from the National Savings Scheme (NSS) in January 2004 by investors indicates that the scheme is no longer a popular choice for investment. Over the past few years, the government has made over ten successive cuts in the rates of return.
This has rattled small investors who saw the NSS as a safe and secure avenue of investment. As interest rates at which financial institutions lend money decline, the rate of return on saving schemes where people put their money have also reduced.
This is done so that people or institutions do not borrowing money from banks only to put them in government saving schemes and make a tidy profit. While there have been instances in the past where this has happened, the anomaly is easily checked with the reduction in the rate of return on the NSS.
The problem with slashing rates, however, is that this closes off another channel of investment for people looking for a safe and secure instrument in which to put their savings and one that guarantees them a reasonable rate of return.
The government now wants people to invest in the stock market through mutual funds and other instruments. But this is a riskier alternative and a concept with which most people are not familiar.
The worst hit in this rationalization of rates of return are widows and pensioners, many of whom have invested their life' savings in NSS. The drop in the rates of return hits them hard because, on the one hand they have to cope with the effects of inflation and, on the other, their profits from money invested in the NSS continues to decline.
In the absence of a social security system in the country, the government needs to make special arrangements for this category of people so that their rates of return are not affected. This can come in the form of a subsidy which would amount to a fraction of government expenditures provided adequate measures are taken to ensure against.
Prisoners abroad
Replaying to a question on behalf of the foreign minister in the National Assembly on Saturday, Water and Power Minister Aftab Ahmad Khan Sherpao assured the house of the welfare of some 1,048 Pakistanis being held in prisons abroad.
These prisoners are held in various jails in the US, UK and Afghanistan for violating different laws of the host countries. They include 211 Pakistanis in the US prisons - excluding those being held by the US security forces at Guantanamo Bay in Cuba - 314 in British prisons and 532 in Afghanistan.
The minister said that these prisoners were being provided consular services by the respective Pakistani missions abroad and that the government was in touch with the authorities in the host countries regarding their possible release and repatriation.
The foreign ministry, however, could not provide more details as to the number of Pakistanis being held in prison in other countries. This indeed is regrettable because, according to standard practice, a host country always informs the nearest foreign mission of a country whose national is being held in its prison.
It is common knowledge that many among the hundreds of thousands of economic migrants from poorer countries who go abroad in search of better earnings every year are Pakistanis, and not all of them are legal migrants.
A large number of recently deported Pakistanis from Oman are but one such case in point. The problem obviously calls for a more active role for Pakistani missions abroad, especially in countries whose justice systems may not be on a par with those of more developed ones.
One suspects that an unspecified number of Pakistanis may be languishing in jails in many countries for lack of timely help from our consular offices abroad. The tragic plight of those being held at Guantanamo Bay and in various Afghan prisons can well be imagined. The government must pursue their cases, along with those of prisoners being held in other countries and who are not yet accounted for, on a priority basis.