Research Analyst
Oct 17 - 23, 2011

During the First World War, the British government introduced several schemes for the collection of funds from public to meet the war expenditures. During the Second World War, post office defence savings certificates were floated to meet the expenditures.

The need to set up a separate agency was felt and a national savings bureau was established in 1943-44 as an attached department of the ministry of finance of the undivided government of India. At that time, the main functions of the savings department were to initiate all policy matters and issue directives for the execution of policy decisions of the central government, and to review the savings schemes from time to time. Gradually, savings organization was established in almost all the provinces of the subcontinent with the objective of popularizing the savings schemes among the masses as well as to supervise, guide and control the working of authorized agents under their jurisdiction.


24-Jun-08 30-Sep-08 960 11.52
1-Oct-08 30-Nov-08 1108 13.30
1-Dec-08 31-03-09 1250 15.00
1-Apr-09 30-Jun-09 1133 13.60
1-Jul-09 30-Sep-10 1000 12.00
1-Oct-10 31-Dec-10 1030 12.36
1-Jan-11 30-Sep-11 1120 13.44
1-Oct-11 Till Date 1050 12.60

These authorized agents were in those days the only agency for securing investment in terms of savings certificates from the public.

The central agency viz. national savings bureau, Simla, was mainly concerned with the policy and planning matters of the savings schemes whereas the responsibility of execution of various savings schemes was vested with provincial authorities. At the time of independence, there was no time for any sort of innovations in the field of administration. Thus, an organization with the name of 'Pakistan savings central bureau' was created and the savings work was entrusted to it by the government of Pakistan, but this bureau had its own peculiarities.

In 1953, the Pakistan savings control bureau was renamed as central directorate of national savings and it carried out the functions on the lines of national savings bureau Simla but as a part and parcel of the finance division, central directorate of national savings was only responsible for publicity, and the operative agents were the provincial governments as well as Pakistan post offices. However, the entire expenditure in this regard was borne by the central government.

Till Dec, 1971, the national savings organization functioned as a publicity organization and its activities were merely promotional in nature. But, in early 1972, the scope of its activities was enlarged as the central directorate started selling II-rupee prize bonds, and subsequently engaged in the operations of other savings schemes.

Presently, the national savings organization is the biggest nonbank borrowing institution for the government, with over six million accountholders investing more than Rs1,500 billion.


The government of Pakistan introduced defence savings certificate scheme in the year 1966. The scheme was specifically designed to meet the future requirements of the depositors. This is 10 years' maturity scheme with built-in feature of automatic reinvestment after the maturity. These certificates are available in the denominations of Rs500, Rs1000, Rs5,000, Rs10,000, Rs50,000, Rs100,000, Rs500,000 and Rs1,000,000.


Keeping in view the periodic needs of depositors, the three years' maturity scheme was introduced in 1990. These certificates are available in the denomination of Rs500, Rs1000, Rs5,000, Rs10,000, Rs50,000, Rs100,000, Rs500,000 and Rs1,000,000. Profit is paid on the completion of each period of six months.


The five years' maturity regular income certificate scheme was launched in 1993. These certificates are also available in the denomination of Rs50,000, Rs100,000, Rs500,000, Rs1,000,000, Rs5,000,000 and Rs10,000,000. Profit is paid on monthly basis.


This ten years' maturity scheme was launched in 2003. Initially, the scheme was meant for widows only, however, the government later decided to extend the facility for senior citizens aged 60 years and above with effect from January 2004. These certificates are available in the denominations of Rs5,000, Rs10,000, Rs50,000, Rs100,000, Rs500,000 and Rs1,000,000.


This is the oldest scheme among the national savings instruments. The scheme was designed to encourage the small savers and to meet their day to day needs. This is an ordinary account and frequent withdrawals (thrice a week) can be made through this account.


The three years maturity was scheme introduced in 1990. The deposits are maintained in form of an account. Profit is paid on the completion of each period of six months. This account can be opened by an individual in his name or in the name of minor(s) dependent on him or by two individuals jointly in their names. In addition to above individual investors, the following institutions are also allowed to invest in the scheme, subject to their registration under the relevant law in force.


During 2003, the pensioners' benefit account scheme was launched by the government. The deposits are maintained in the form of accounts and the profit is paid on monthly basis reckoned from the date of opening of the account.

The pensioners of the federal government, provincial governments, and government of Azad Jammu and Kashmir, armed forces, semi government and autonomous bodies are allowed to invest.