CDNS to provide fund for Diamer-basha dam if given autonomous status
The Director General (DG) Central Directorate of National Savings (CDNS) Zafar M. Sheikh has said that funding can be provided for the construction of much-needed Diamer-Basha dam if the Directorate given the status of an autonomous body.
Addressing the launching ceremony of 'Students Welfare Prize Bond' here on Thursday, Zafar M. Sheikh said that according to the constitution, CDNS has been working under the directions of the Ministry of Finance but if the government grants the status of an autonomous body to CDNS, then the Directorate will be in a position to lessen the reliance of the government on commercial banks for domestic borrowing and provide financing to the Basha Dam within the 3 years of the grant of status".
The Director General said that the prize bonds are most Cost Effective Avenue for the government to bridge the Fiscal Deficit. "CDNS will make all out efforts in assisting the government to curb the currency in circulation and inflation,".
The main objective, Zafar Sheikh said, behind the launch of Student Welfare Prize Bond was to tap the currency in circulation all over the country and to curtail the inflationary pressure on the economy.
"This scheme will not only reduce dependency of the government on the external borrowing but prizes paid on these bonds will also be, helpful for students to meet the expenses incurred on their studies", he added. Quarterly draws of Student Welfare Prize Bond will be held and the investment limit will range from minimum Rs 100 to no limit but in multiple of Rs 100. "The sale of the bons will be opened from November today (Friday) to December 14 next month. The Director General said that first prize of the bond was Rs.0.7 million and 2nd three prizes of Rs.0.2 million each and Third 1199 Prizes of Rs.1000 each. Its first draw is scheduled to be held at Karachi on 15th February, 2013.
In Feb 2012, Rs 25,000 Prize Bond launched and within 21 working days, Rs 20 Billion were invested by public in this bond against the target of just Rs 5 Billion.
The Director General said the CDNS wants to increase the rate of return to those who are making investments in its saving schemes.
While responding to a question Zafar Sheikh said, "Total investment made in various saving schemes of CDNS so far has reached at Rs 2280 billion out of this the invest- ment made in prize bonds is Rs 350 billion".
"In the current fiscal year 2012-13, the overall target of investment in prize bonds is Rs 45 billion while CDNS has achieved Rs 19 billion during the first four months of current fiscal", Zafar Sheikh said. He added that the Directorate was trying its best to launch the 'digital student welfare bond' in collaboration with different mobile companies.