March 28, 2025 (MLN): Pakistan’s National Savings Schemes (NSS) have seen a notable inflow of Rs23.33 billion in February, according to the latest data released by the State Bank of Pakistan (SBP). This figure, while impressive, marks a slight decline compared to the previous month when the receipts stood at Rs31.16 billion. The data highlights a shift in the pattern of savings mobilized across various savings products under NSS, reflecting changing investor preferences.
A closer look at the individual savings categories within the NSS reveals mixed trends. One of the key products, Defence Saving Certificates (DSC), experienced a net outflow of Rs1.03 billion in January 2025, signaling that more funds were withdrawn than invested in this category during the month. The withdrawal trend in DSCs could indicate changing investor sentiment, perhaps due to shifting interest rates or the appeal of other savings products offering more attractive returns.
On the other hand, Regular Income Certificates (RIC) demonstrated a strong performance, attracting Rs6.63 billion in inflows. This category continues to be a popular choice among conservative investors seeking regular income streams due to its relatively higher returns compared to conventional savings accounts. Similarly, Special Savings Certificates (SSC) saw a positive inflow of Rs3.51 billion, suggesting that these long-term saving options remain a preferred choice for those seeking stability and security for their investments.
Another category, Prize Bonds, which also has a loyal investor base, saw Rs2.55 billion injected into the system in February. Prize Bonds are often seen as a more speculative form of savings, offering the potential for prize winnings, in addition to regular returns. The continued inflow into Prize Bonds indicates that they remain an attractive option for a segment of savers looking for a combination of both safety and the chance of winning.
Other savings categories within the NSS registered a total of Rs17.27 billion in receipts during the month. However, this figure represents a significant decline compared to the Rs22.46 billion recorded in January 2025. This reduction suggests that while savings mobilization remains strong overall, certain categories may be losing some of their appeal in the face of broader economic conditions or changing investor preferences.
Looking at the broader picture, the 8-month fiscal year 2025 (8MFY25) figures show that total net inflows from National Savings Schemes have reached Rs141.62 billion. This cumulative figure reflects the sustained interest in NSS products, even as the monthly figures experience some fluctuations. The overall positive inflows indicate that Pakistanis continue to view NSS as a reliable and secure way to save and invest their money, even amid fluctuating economic conditions.
The National Savings Schemes have long been a cornerstone of Pakistan’s retail investment landscape, offering a range of products with varying levels of risk and return. Despite the decline in some categories, the continued inflow of funds underscores the resilience of these savings products. For the government, the NSS remains an important tool for channeling domestic savings into productive investments, providing a stable source of financing for various national projects.
In conclusion, while February’s net inflows of Rs23.33 billion represent a slight dip compared to January, the broader trend in savings mobilization remains positive. The total savings figures for the 8-month period further highlight the critical role that NSS plays in the country’s financial ecosystem, and the various savings products continue to cater to a wide range of investor needs.