NSS Records Rs368.13bn Outflows During 11MFY23

According to SBP data, cumulative outflows from the National Savings Schemes (NSS) in 11MFY23 were Rs368.13 billion, up 24.4% from Rs295.94bn in 11MFY22.

The country's economic downturn, which reduced people's purchasing capacity, may explain this increase in savings outflows. Savings must be used for fundamental needs.

Registration requirements for prize bonds of higher denominations, tough anti-money laundering legislation, and KYC criteria have also hurt fund mobilisation.

Investors withdrew Rs26.32bn in May 2023, compared to Rs33.57bn in April and Rs59.88bn in May 2022.

The NSS saw enormous outflows of Rs358.68bn and Rs317.3bn in FY22 and FY21, respectively, while in FY20, the second-highest annual mobilisation in the 17-year period, Rs372.5bn was inflowed.

Defence, regular income, special, and other saving certificates outflows totaled Rs38.26bn, Rs104.41bn, Rs80.38bn, and Rs153.05bn in 11MFY22.

Prize bonds attracted Rs7.98bn in 11MFY23.

Most outflows in May 2023 were Rs37.38bn regular income certificates.

Special savings certificates and defence savings certificates reportedly outflowed Rs1.83bn and Rs6.34bn, respectively, while prize bonds and ordinary saving certificates remained the primary attraction with Rs639.6m and Rs18.58bn.