THE Behbood Savings Certificates were officially launched by the government in July 2003 as a social welfare initiative to provide a secure and stable monthly income to the elderly and the disabled. Initially, the scheme was exempt from tax and Zakat deductions, and one could nominate an individual to inherit the funds once the investor ceased to exist. Over the last more than 20 years, there have been a number of changes that have all gone against the investors, adding more layers of vulnerability to the already vulnerable.

Senior citizens, instead of being looked after when they need it most, have been left high and dry to fight loneliness and the high cost of living. The marginalised citizens are mostly white-collared professionals who gave the best part of their lives to society and paid all due taxes. They have now been hit by a triple-edged sword.

The profit rates have drastically been reduced, a five per cent tax has been imposed, and the option of nominee has been taken away, leaving the inheritors to keep filling the coffers of solicitors and the National Database and Registration Authority (Nadra).

Yet another trick has been played on them in the shape of changes related to joint accounts with an ‘either or survivor’ clause. The least the government could do is to consider withdrawing the 5pc tax as its impact will not be too astronomical compared to the concessions that are being extended to traders and exporters.

Khaled
Islamabad

Published in Dawn, November 1st, 2026