ISLAMABAD: The Central Directorate of National Savings (CDNS) has reduced interest rate on saving certificates and bonds due to lower rates of the Pakistan Investment Bonds (PIBs).

The CDNS notified downward revision in the profit rates for various savings certificates which are applicable from August 1, 2016.

“The CDNS interest rates are linked with the policy of PIBs set by the State Bank of Pakistan (SBP),” said a senior official of the CDNS talking to APP on Saturday.

“The instant revision was made in the backdrop of current market scenario and in accordance with the government’s policy to provide market based competitive rate of return to the investors of National Savings,” he added.

He said currently the country’s policy rates and interest rates of CDNS are lowest in history.

He said as per notification issued by the federal government, the new rates for Defence Savings Certificate, Special Saving Certificate, Regular Income Certificate, Savings Accounts have been revised down at an average of 7.33pc, 6.133pc, 6.31pc and 3.84pc respectively.

The official said the profit rate of return for specialised savings schemes like Bahbood Savings Certificates and Pensioners’ Benefit Account has also been revised and fixed at 9.12pc in order to provide safety net to specialised segments of the society.

The CDNS is committed to facilitating pensioners, senior citizen and widows under the Pension Benefits and Behbood Funds, he added.

He said the CDNS has set Rs200 billion net target for 2016-17 while the directorate was able to achieve the revised target of Rs 218bn for 2015-16.

The official said CDNS does not accept institutional investments but individual investments are encouraged in National Savings.

He added: “We have received no directions from the International Monetary Fund (IMF) for revision of saving rates.”

Published in Dawn, August 28th, 2016