THE ministry of finance has taken the deplorable step of reducing the profit rates on all savings scheme. The decision is taken at a time when people are already facing financial hardships owing to unprecedented inflation.

The government has reduced profit rates on Pensioners Benefit Account and Behbood Savings Certificate for pensioners and senior citizens from 14.74 per cent to 12.48pc after which on can get Rs1,040 per month on an investment of Rs100,000.

To make matters worse, 10pc withholding tax has also been imposed by the Federal Board of Revenue and thus after deduction of tax one gets Rs936.

The pensioners are already in miserable financial conditions having limited income. They have no source of income except investment with National Savings.

The ministry of finance and central directorate of savings should reconsider this decision and realise the present financial agony of the old citizens and pensioners.

Mahmood Ahmad Minhas
Lahore

Published in Dawn, November 27th, 2019