ISLAMABAD:The Central Directorate of National Savings (CDNS) has decided to start Islamic finance and will start implementing its procedural work from next month to provide the facility of Islamic finance in the institution.
In this regard, under Islamic Sharia Compliance, Prize Bonds and Savings Certificates will be issued for investment in accordance with Sharia Principles, the senior official of CDNS .
The CDNS will provide Islamic investment opportunities to its consumers in an institution like the rest of the private and public sector banking, where Islamic sharia business has now reached 20 percent.
Replying to a question, he said the CDNS collected Rs 850 billion fresh deposits in the last seven months of current fiscal year 2021-22 from July 1st to March 31th.
The CDNS has set an annual gross receipt target of Rs 980 billion from July 1 to June 30 of the previous fiscal year 2020-21 to promote savings in the country, he said.
The senior official said the CDNS had set Rs 250 billion annual collection target from July 1 to June 30 for the year 2020-21 as compared to Rs 352 billion for the previous year (2019-20) same time span to enhance savings in the country.
The CDNS had set Rs 352 billion annual collection target for the year 2019-20 as compared to Rs 350 billion for the previous year (2018-19), he said.
The senior official said that (CDNS) has started working to increase new investment opportunities and promote digital investment through many new projects.
The CDNS in collaboration with State Bank of Pakistan is developing digital Prize Bonds, which will be available through online electronic channels, he said.
He said the CDNS is in process of launching its first Mobile App for online purchase and encashment of National Savings Schemes.
The official said that for better and efficient transfer of funds electronically, the CDNS is going to adopt RAAST in the current month of January for speedy flow of funds through its financial tributaries, he said.
Initially, the CDNS has opened three separate accounts in State Bank of Pakistan (SBP) to avoid/stop direct access to the Non-Food Account-1 for its Alternative Delivery Channel (ADC) operations, 1Link Payment, UPI Payment and RAAST payment.
The Finance Division will allocate budgetary ceiling on a daily basis and the CDNS will operate within the allocated funds limit.
Accordingly, the PFM Act, 2019 is adopted in its true spirit for the Alternative Delivery Channels of CDNS.
He informed that the CDNS interest rates were linked with the PIB policy set by the SBP.
He said the CDNS had opened new avenues for public and private investment to document the country’s economy and ensure transparency in the financial system.
Replying to another question on the current revision of CDNS certificates’ profit rates, he said the CDNS had maintained the same interest rate on the savings certificates investment due to the market situation and as per Pakistan Investment Bonds (PIB) policy decision.
The National Savings had received an increased investment of Rs 80 billion by June 30 2021, from the newly registered Premium Prize Bond of Rs 40,000 and Rs 25000 by the institution, he said.
The senior official said that during last year (2020-21), investors withdrew Rs 300 billion after the suspension of the said bond.
He said new registered Premium Prize Bonds of Rs 40,000 and Rs 25,000 were registered by the State Bank of Pakistan (SBP) and encashed only by the registered financial institutions under the SBP.
