National Savings in need of an overhaul

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NATIONAL Savings is one of the major cornerstones of Pakistan’s economy, but its issues and significance remain overlooked. The public entity, other than banks, is the only institution that shoulders the responsibility of funding government projects and development programmes. It operates on a simple economic model: people deposit their savings and pensions into their chosen certificate schemes and receive a profit at maturity.

National Savings offers around 12 per cent returns, outperforming many private and public counterparts, especially in its mainstream Defence Savings and Behbood schemes. Despite being a formidable fiscal stabiliser for the country’s economy, National Savings faces challenges that largely remain unnoticed.

The branches of National Savings are littered with stockpiles of redundant documents, including receipts, coupons and receiving slips from the 1970s. These records are no longer useful or readable, and merely contribute to administrative clutter and staff exhaustion. As such, the branches are not authorised to expunge these records, as the government has devised no official mechanism.

Besides, the institution still relies on paper-based procedures and outmoded methods. The computers and equipment provided by the government long ago have now become obsolete. There has been no fresh recruitment against critical staff positions for several years, and this has added to the predicament of the country’s sole public investment engine.

Additionally, despite being a government institution with a considerable magnitude, National Savings does not possess land of its own as its branches and head offices function out of rented spaces. These downturns demonstrate a lack of attention and ignorance on the part of higher authorities.

The relevant federal ministry needs to focus on National Savings. Branches should be revamped in line with the demands of the modern world, and repetitive administrative procedures should be replaced with hassle-free, paperless and digitalised mechanisms. A holistic plan based on a multifaceted approach is needed to overhaul the currently dysfunctional system of National Savings.

Mudasir Ahmed
Karachi

Published in Dawn, September 20th, 2026

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