CDNS to pro­vide fund for Di­amer-basha dam if given au­ton­o­mous sta­tus

The Pak Banker - - Front Page -

IS­LAM­ABAD

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.

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