National savings Pakistan is known as best safe national savings government bonds investment in Pakistan. Pakistan National savings scheme is fixed rate savings scheme. It is once known for world best savings profit rates. Now SSC profit rates have dropped to 5.8 percent per annum from 13 percent per annum. Safe & good investments are vital for the people and families of any country. One great reason that United States of America produce huge numbers of billionaires and millionaires is its very low level of corruption & institutional stability. Your money remains safe even if one forgets. Such bodies include government bonds, banks and financial institutions like stock exchanges even private time tested financial companies. Such safe and stable intuitions are much needed for reliable and future Pakistan. Digital advanced institutions like CDC Pakistan declare themselves ultimate custodian of your wealth due to their stable digital system. Good banks in Pakistan are equally secure.
Ultimate end of economic welfare of any modern country are their investors or people of the country. As in the concept of modern country concept of “nation state” or national exchequers are not the most important thing as mostly state’s national wealth is high and huge misappropriations take place in funds.
Financial transparency is very important for the survival of every family. Such economies collapse which are not transparent. If government institutions and banks do corruption, then where people secure their money and how they transact? Sense of financial insecurity is one of the reason that mostly people purchase home or real estate property and sit over it.
Although government bonds, called saving certificates in Pakistan, do not provide high return on investment but these bonds are considered safest and securest form of investment, being guaranteed by government (Although government corruption cannot ignored but on my few inquiries government employees firmly assured me that not a single person lost their money in this investment). Due to such assurances, I invested most of my money in government national savings certificates and prize bonds. So, I consider myself among the most patriotic national partners.
How PML-N government claim to be people welfare or investor friendly government? Profit rates or yearly yield of government bonds i.e. 3 years special certificates are continuously decreasing, dropped to less than 7 percent from 13 percent YTD. Many investors of this government scheme speak to me who were very unhappy with this decrease. Like me, many unemployed or low-income group people rely on income by profit. It was like one kind of employment, which decreased even less.
Awami political government should care about people who rely on them. Democracy is the government of the people, by the people, for the people. Where is it? Unfortunately, we see in many countries, government of the government, by the government, for the government.
I always listen, note and convey public demands. It is responsibility of government to compensate people in need. One public demand is to decrease Bahbood Savings Certificates (BSC) eligibility age to 50 from present 60 years, as its profit rates are better. Often people do not get jobs in old age due to weakness, disease or disability. Mostly governments and institutions prefer young energetic people so older age people are disadvantage people.
National savings profit rates – Special Savings Certificates (SSCR)
Historical Rates Remained Applicable On Special Savings Certificates (Regd.)/ Accounts From 13th November, 1996 Onwards
Periodical Profits On Investment of Each Rs.100,000/- After Completion Of
06- Months 01-Year 1 1/2 Year 2 Years 2 1/2 Years 03-Years
Rate (% p.a.) 11.40% 11.40% 11.40% 11.40% 11.40% 12.00%
5700 5700 5700 5700 5700 6000
Rate (% p.a.) 11.60% 11.60% 11.60% 11.60% 11.60% 13.40%
5800 5800 5800 5800 5800 6700
Rate (% p.a.) 9.60% 9.60% 9.60% 9.60% 9.60% 11.20%
4800 4800 4800 4800 4800 5600
Rate (% p.a.) 8.20% 8.20% 8.20% 8.20% 8.20% 9.70%
4100 4100 4100 4100 4100 4850
Government bonds are bonds issued by a national government, bound to pay announced fixed periodic profit payments and to repay the face value on the maturity date. Many government bonds provide facility of combined interest so non collection of periodic profit enhance profit collected at the time of maturity. Government bonds are usually denominated in the country’s own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds, although the term “sovereign bond” may also refer to bonds issued in a country’s own currency if these bonds are specifically intended for international market.
Government bonds return is low when compared with property investment returns. During my analysis, I observed that real estate provided incredible 200 times return during last 25 years in Pakistan. My aunty took one flat in only Rs. 5,000 rupees in one LDA scheme in Lahore and now its’ price is Rs. 10, 00,000. It is incredible 200 times increase. Property investment turned people billionaires in Pakistan. Same is the case in other good schemes like DHA, WAPDA Town etc.
Why such an unbelievable increase took place given Pakistan is a country with little earning potential, low social security, high crimes and corruption rate and added continuous terrorism and fundamentalism. It is due to alarming growth of population so phenomenal increase in demand and prices.
Since government scheme investors contribute towards national cause of savings and take far less profit as available in real estate investment, they should get full deserving profit. However, government is considered as the most honest partner though corruption is high in developing countries.
Last updated on October 02, 2016