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National savings schemes and the retirees

December 25, 2012

IT is reported in newspapers that the government is considering reducing the profit once again on National Savings Schemes.

In this context, it is submitted that the salaried class consists roughly of 30 per cent government employees and 70 per cent private of sector employees.

The majority of the private sector employees does not get pensions from their organisations. In order to set up their pension plan they deposit their life savings in the National Savings Centre by buying mostly Behbood Savings Certificates. Thousands of ‘retirees’ and their families depend for their living solely on the profit obtained from such deposits.

In the past the government continuously increased salaries of government servants and pensioners. It is praiseworthy of the government that it has acted to bring relief to its employees against rising inflation.

But the government, it seems, forgot about the retirees from the private sector. The State Bank has been reducing bank rates and also reducing the profit rate of National Savings Schemes. This is causing extreme hardships to the hapless retirees.

It is requested that the finance minister and the SBP Governor give some relief to the retirees of the private sector and instead of reducing the profit rate on National Savings Schemes take suitable measures to enhance it at least on the Behbood Savings Certificates. This humane act will earn them the blessings of thousands of retirees and their families.