NSS experiences a net outflow of Rs. 28 billion, raising alarm bells

In a recent report released by the State Bank of Pakistan (SBP), data reveals a notable net outflow of Rs28.09 billion in Savings Mobilized by National Savings Schemes (NSS) for the month of October. This marks a considerable increase from the Rs12.33 billion in payments recorded in the preceding month.

Delving into the specifics, the Defence Saving Certificates (DSC) accounted for a significant portion of this outflow, witnessing a withdrawal of Rs8.12 billion. This indicates a trend where more funds were pulled out from DSCs than invested during the reported month.

Similarly, the Regular Income Certificates (RIC) reported an outflow of Rs13.77 billion, while Rs910.85 million was withdrawn or redeemed from the Special Savings Certificates (SSC). Prize Bonds also experienced redemptions, with Rs244.87 million being redeemed during the same period.

Additionally, various other savings categories within NSS collectively recorded payments amounting to Rs5.05 billion.

It is noteworthy that throughout the fiscal year 2023, there has been a consistent trend of net outflows from Savings Mobilized by NSS, with the cumulative figure reaching Rs381.87 billion. This indicates an ongoing pattern of net payments from these savings schemes throughout the year.