ISLAMABAD - The investors have withdrawn Rs65 billion out of total stock of Rs259 billion investment from Central Directorate of National Savings (CDNS) after the federal government decision to discontinue the Rs40,000 prize bonds.

Senior official of CDNS said now remaining the Rs40,000 prize bonds offered by the CDNS are worth Rs194 billion which may decrease more in coming months after withdrawal from banks.

The government has frozen the prize bonds of Rs40,000 in previous months when the State Bank of Pakistan (SBP) has issued circular and directed all commercial banks to stop selling Rs40, 000 prize bonds from June 24 onwards.

According to the notification the SBP directed that national Prize Bonds of Rs40, 000 denominations shall not be sold after June 24, and will not be encashed or redeemed after March 31, 2020.

Replying to question, he said the CDNS has achieved a net target of Rs 22 billion by August 20, of current fiscal years 2019-20.

The CDNS has set Rs 350 billion annual net targets for the year 2019-20 as compared to Rs. 324 billion for the previous year’s 2018-19

to enhance savings and promoting saving culture in the country, the official said.

The Directorate has also revised and increased the gross target of Rs 1570 billion for fiscal year 2019-20, he said.

Replying to a question, he said that CDNS had collected Rs 410 billion by June 30, 2019 exceeding the target of Rs 324 billion set for the year while during the preceding year of 2017-18, CDNS collected Rs155 billion.

The total savings held by the CDNS stood at Rs 1,150 billion by June 30, while the directorate had Rs 774 billion savings by the same date,a year ago, he said.

He said that due to the rationalization of CDNS certificates’ rates, the directorate had collected more savings than expected; therefore CDNS revised its target upward from Rs 224 to 324 billion for FY 2018-19.

Replying to another question, he said the CDNS has already increased rates on various savings certificates aimed at promoting savings culture in the country.

“The CDNS notified the upward revision in the profit rates for various saving certificates with effect from July 1st (2019), encouraging people to invest in various schemes of the directorate,” he said. The official was of the view that the upward revision of these certificates would generate more revenues that could be utilized as budgetary support by the government to overcome budget deficit problems.

He informed that the new rate for Defense Savings Certificate has been increased from 12.47 percent to 13.01 percent while the rate of Special Saving Certificate from 11.57 to 12.90, Regular Income

Certificate from 12 percent to 12.96 percent.

Likewise, the rates of Savings Accounts have been increased from 8.5 percent to 10.25 percent while the rates of Bahbood Savings Certificates and Pensioners’ Benefit Account were increased from 14.28 percent to 14.76 percent.

He informed that the government had also increased the short-term (3 months), medium-term (6 months) and long-term (12months) certificates to attract more people towards savings and investments with CDNS.

He said that the new rates for short-term certificates have been increased from 9.8 percent to 12.08 percent, medium-term from 9.88percent to 12.18 percent while the rate of long-term certificate has been enhanced from 9.98 percent to 12.28 percent.