National Savings (Pakistan)


The Central Directorate of National Savings is the state-owned savings bank of Pakistan. It operates as an autonomous governmental agency under the Ministry of Finance and is managed by Central Directorate of National Savings. Historically, the operations of National Savings have been geared towards obtaining funds from individual savers in Pakistan in order to provide non-bank financing to the government's fiscal deficit. Towards this aim, the organization offers savings products with competitive interest rates, along with a 100% guarantee from the government treasury on all deposits.

History

The history of the National Savings Organization in Pakistan dates back to the British Raj when the Government Savings Bank Act, 1873 was promulgated. During the First and Second World War, the British government used the then National Savings Bureau to raise funds to meet war-related expenses. After Pakistan acquired independence in 1947, the organization continued to operate as NSB, before being renamed to Central Directorate of National Savings in 1953. In August 1960, the CDNS was given the status of an "Attached Department" of the Ministry of Finance and made responsible for all policy matters and execution of various National Savings Schemes. The present structure of CDNS was set up in early 1972 under the Ministry of Finance.
In August 2019, the government decided to turn National Savings Organization from a government agency to a corporation that will run under the government. Relevant legislation in this regard, Pakistan Savings Bill 2019, is prepared and being finalized.

Finances

The organization manages investments worth as of FY 2018-19; an amount that is 25% of the country's net savings - making it the largest financial institution in Pakistan. It has 7 million customers, of which 47% are female, leading it to become the financial institution that is closest to gender parity in the country. The organization sets the rate of interests itself, and revises them at its discretion to offer market-competitive products, and in turn, cheap financing for the government.

Operations

National Savings organizational structure is based on directorates and branches. The Central Directorate, or headquarters, is located in G-6 Markaz, Islamabad. The organization's regional directorates are located in Lahore, Gujranwala, Faisalabad, Karachi, Quetta, Hyderabad, Multan, Sukkur, Bahawalpur, Islamabad, Abbotabad, and Peshawar. Under these regional directorates, there are 376 branches of National Savings Centers across the country.

Products

The organization offers several savings and investment products; including prize bonds, saving certificates, and saving accounts. Most products are available to resident and non-resident Pakistanis, however, some products have restricted access and require specified criteria to be met before they are offered. These restricted access products are italicized in the following products list: