Dollar-based saving instrument for expats planned

[Naveed Yaseen]

By Khalid Mustafa
ISLAMABAD: The government is working on a proposal to introduce a dollar-based national saving scheme instrument for expatriates to attract dollars in the country, a senior government official told The News.

The government will offer expatriates better interest rates compared to interest rates they are getting in USA, UK and Middle East. The expats get only two to two and half percent on their deposits in their respective countries.

The government would give far better interest rates to expatriates that will help end the dollar crisis in the country. When asked if local people will be allowed to participate in the dollar based saving scheme, the official said it would lead to dollarisation in the country so this scheme would be confined only to Non Resident Pakistanis (NRPs).

In addition, for Pakistanis, the government is planning to introduce short term national saving schemes based on three months, six months and twelve months period and the scheme holders will be offered market based interest on higher side.

“We are replacing the old debt stocks by launching new schemes in order to attract more investments during the current fiscal year,” the official said.

Pakistan’s fiscal situation is on the decline owing to debt stocks maturity of Defence Savings Certificates (DSC) with 17 to 18 per cent interest rates, which was obtained by the last PML (N) government in 1997 and 1998 and after ten years these DSC matured in year 2007 and 2008.

The government’s plan for short-term schemes will be initiated next month in order to lure investments, which the National Savings Schemes have given back to investors after maturity of DSC.

To a question the official said that Central Directorate of National Savings has paid back Rs171 billion to investors after maturity of various savings schemes.

The government is also working a proposal to allow disabled persons of the country to benefit from highest ever 15 per cent per month profit on their investment in Behbood Saving Certificates.

http://www.thenews.com.pk/daily_detail.asp?id=139979