ISLAMABAD, June 25: The government has revised upwards the rates of return on National Saving Schemes (NSS) with effect from June 23, 2007, NSS Director-General Ahmed Awais Pirzada said here on Monday.

Talking to APP, he said: “The rates of return on NSS are revised biannually keeping in view the returns on products of similar maturities offered by the financial sector.”

The revision of rates on NSS has been bench-marked to the yield on Pakistan Investment Bonds (PIBs) to ensure cost effective fundraising for bridging the government's budgetary deficit, he added.

Mr Pirzada said the latest increase is in line with the government's overall macroeconomic policy of containing the debt to GDP ratio and simultaneously ensuring level playing field for other players of the financial market.

Thus, he said, due diligence has also been exercised while carrying out the revision to ensure that no distortions are caused in the financial market by keeping in view the returns offered on competing products, including PIBs, besides ensuring reasonable lending rates.

The rates on Defence Savings Certificates have been enhanced from 10 per cent to 10.15 per cent, on Special Savings Certificates/Account from 9.17 per cent to 9.25 per cent, on Regular Income Certificates from 9.24 per cent to 9.54 per cent, on Pensioners’ Benefit Account and Bahbood Savings Certificates from 11.52 per cent to 11.64 per cent and on Savings Account from 6 per cent to 6.50 per cent, he added.

The DG of NSS said that the National Savings Organisation has been successful to achieve the target fixed by the government. The target for the fiscal year 2006-07 was earlier 14 billion, which was later on increased to Rs50 billion.

The net achievement by end May 2007 works out to Rs55 billion which is 110 per cent of the total target. —APP