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Linking savings schemes to inflation

January 19, 2013

THIS refers to letters appearing on the issue of savings schemes. There is no denying the fact that in terms of galloping inflation the rate of return on savings schemes is negative.

Pensioners and widows are hit hard and find it almost impossible to make ends meet and have to resort to dipping into their actual savings.

Years of hard, honest and diligent labour yield only miserable results.

Tax-dodgers, people running sleazy businesses, politicians and others are hardly affected by the phenomenon of double-digit inflation.

This includes the ruling elite for whom the woes and miseries of the common man are nothing but a distant illusion.

The suggestion to link returns on savings schemes, particularly Behbud and Pensioner’s Benefit Accounts, to the rate of inflation makes a lot of sense and that is precisely why it is likely to fall on deaf ears in the power corridors.

HILAL AHMED Karachi