ISLAMABAD, Sept 24: The Central Directorate of National Savings (CDNS) has increased rates on various saving schemes to promote non-bank borrowing for the government and facilitate small and large investors.

“Interest rate of Special Saving Certificates has been increased from 11.25 per cent to 12.8 per cent while that of Regular Saving Certificates has been enhanced from 11.52 per cent to 13.30 per cent,” Director General CNDC, Zaffar Sheikh told APP here on Wednesday.

The new interest rates would be applicable from October 1, 2008, on new investors and schemes, he said, adding that those availing the old schemes can switch over to the new ones by paying nominal services charges to the organisation without any hidden charges.

“Rates will be revised periodically instead of six months’ interval,” he said, adding that rates on all saving schemes would be revised from time to time to adjust rates in accordance with the market.

He said the decision to this effect had been taken in the light of the budget speech 2008-09 by the finance minister announcing that National Saving Schemes would be revised to promote non-bank borrowing and investments.

The Ministry of Finance has approved the increase on the rate of returns from 150 basis points to 170 basis points to achieve this objective, he remarked.

He said that the finance ministry was committed to launching various saving schemes and certificates, including short-term investment scheme with an aim to bridge the gap between short- and long-term investment schemes.

The CNDC, he said, has also sent a proposal to the government for including disabled for the Behbood Saving Certificates in order to provide them safety nets and respectable income opportunities.

He said that the CDNS was fast moving to further strengthen its operations and improve its efficiency by creating linkages between its various offices.

“The government has allocated Rs500 million to develop the Information Technology of the CDNS and a Project Director has already been inducted to take care of this operation,” he added. —APP