KARACHI: The investment in saving certificates has registered 19 percent growth to increase Rs2,217 billion in the last fiscal year owing to better rate of interest and safe investment avenue.
The data released by State Bank of Pakistan (SBP) revealed that the investment increased to Rs2,217 billion by June 2019 as compared with Rs1,865 billion by end of same month of 2018.
Experts said that the weak economic situation and continuous increase in interest rate by the central bank encourage investment in saving schemes.
According to the central bank data the investment in the certificates issued by National Saving Center (NSC) rose by 20 percent to Rs2,096 billion by June 2019 as compared with Rs1,749 billion in the same month a year ago.
The central bank had adopted monetary tightening stance since May 25, 2018 and pushed up interest rates to 13.25 percent from 6 percent during the past eight consecutive policy announcements.
The market sources further elaborated that the deterioration in stock market was also a major factor behind significant investment in the government securities.
As per the data the investment in the Defence Saving Certificates (DSC) increased to Rs393.58 billion by June 2019 as compared with Rs336.24 billion in the same month of last year.
Meanwhile, the investment in Special Saving Certificates (SSC) grew to Rs413.71 billion fro Rs381.87 billion in the period under review.
The data further showed that the investment in Regular Income Certificates posted sharp growth of 41 percent to Rs489.62 billion by June 30, 2019 as compared with Rs347.532 billion in the corresponding month of the last year.
Further the investment in Behbood Saving Certificates grew to Rs914.46 billion from Rs794 billion.
The market sources said that the government drive to document the economy and announcement to stop the circulation of Rs40,000 denomination prize bonds encouraged investors to divert the investments into saving schemes.