CDNS realizes Rs955b fresh bonds by May 5

The Central Directorate of National Savings (CDNS) on Saturday attained the target of issuing Rs 955 billion fresh bonds in the last 10 months of current fiscal year 202122 from July 1st to May 5th.

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, the senior official of CDNS told APP here.

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. Replying to a question, he said the 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, he said.

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 another question, 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.

Brazil's central bank raised its key interest rate for the 10th straight time Wednesday, trying to tame surging inflation that has proved tough to slow for policy makers in Latin America's biggest economy.

Saying inflation "continued surprising negatively," the bank's monetary policy committee raised the benchmark Selic rate one percentage point, to 12.75 percent, in line with analysts' forecasts.

Conditions in the global economy have "continued to deteriorate," the bank said in its accompanying statement.

"Inflationary pressure stemming from the (coronavirus) pandemic has intensified, with supply problems caused by the new wave of Covid-19 in China and the war in Ukraine."

Monetary tightening by the world's wealthiest countries is also "increasing uncertainty and creating additional volatility, particularly for emerging countries," it said.

The move came the same day the US Federal Reserve raised its key interest rate by a half percentage point-its biggest hike since 2000 -and indicated more tightening was on the way, also trying to slow soaring inflation.