ISLAMABAD, July 19: The government on Tuesday announced 1 to 2.04 per cent increase on rates of return on various instruments of National Savings Scheme (NSS). The investment limit on Pensioners Benefit Account and Bahbood Savings Certificates has also been upwardly revised from Rs2 million to Rs3 million.

The rates of return on Savings Accounts, Special Savings Certificates/Accounts, Regular Income Certificates, Defence Savings Certificates and Pensioners Benefit Account/Bahbood Savings Certificates have been increased from 4pc to 5pc, 6.95pc to 8.60pc, 6.84pc to 8.88pc, 8.15pc to 9.46pc, and 10.08pc to 11.04pc, respectively.

The new rates of return on NSS and the revised investment limit on Pensioners Benefit Account and Bahbood Savings Certificates would be effective from July 1, 2005, according to a press release issued by the central directorate of NSS.

The government reviews the rate of return on NSS biannually in line with the market position.

The average return in the past six months on the Pakistan Investment Bonds (PIBs) of 3, 5 and 10 years maturity is considered as yield to work out the profit rate on 3, 5 and 10 years maturity of NSS.

During the past six months, only one auction of PIBs of 3, 5 & 10 years maturity was made by the State Bank of Pakistan, which also could not be materialized as the offers received in this behalf were finally rejected. To have yield on 3, 5 and 10 years tenor, various options were looked into to bring the profit on NSS in line with the market position.

For the Pensioners Benefit Account and Bahbood Savings Certificates, the government has decided to increase the investment limit of Rs2 million to Rs3 million.—APP