Linking savings schemes to inflation

Published Jan 19, 2013 03:14am

THIS refers to letters appearing on the issue of savings schemes. There is no denying the fact that in terms of galloping inflation the rate of return on savings schemes is negative.

Pensioners and widows are hit hard and find it almost impossible to make ends meet and have to resort to dipping into their actual savings.

Years of hard, honest and diligent labour yield only miserable results.

Tax-dodgers, people running sleazy businesses, politicians and others are hardly affected by the phenomenon of double-digit inflation.

This includes the ruling elite for whom the woes and miseries of the common man are nothing but a distant illusion.

The suggestion to link returns on savings schemes, particularly Behbud and Pensioner’s Benefit Accounts, to the rate of inflation makes a lot of sense and that is precisely why it is likely to fall on deaf ears in the power corridors.

HILAL AHMED Karachi

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Comments (2) (Closed)


A
Jan 20, 2013 03:09pm
A very good suggestion by Mr. Hilal Ahmed which should be implemented. Besides the above, I would like to suggest a few things: 1. All NSCs should be computerized. 2. The investors should be paid profit through their bank accounts. They should be able to take out their profit through ATMs. 3. Though, some NSCs are computerized, yet they use manual systems as well. 4. Receipt for Zakat deduction is not issued to the investors when they withdraw their amount.
Blitzer
Jan 19, 2013 07:38pm
"... that is precisely why it is likely to fall on deaf ears in the power corridors." Aptly put.