The federal government has initiated a plan to rationalise the branch network of National Savings, with 111 centres identified as inefficient and financially unsustainable. The proposed restructuring could result in the closure or merger of these centres with nearby operational locations as authorities seek to reduce operating costs and improve the financial performance of the state-owned savings organisation. Under the plan, the number of National Savings centres would decline from the existing 374 to 263, representing a significant reduction in the organisation’s physical network across the country.
National Savings has issued a notification outlining the measures for the centres identified as inefficient. Under the new assessment framework, an operating expenditure benchmark of Rs2,500 has been established for every Rs1 million in deposits held by a centre. The benchmark is intended to provide a basis for evaluating the cost efficiency of individual locations and identifying branches where operating expenses are considered high compared with the deposits they generate. The move comes as the government continues to assess ways of controlling expenditure across state-linked institutions while maintaining access to savings services for the public.
The 111 affected centres have been instructed to prepare practical plans aimed at improving their financial position before closure or merger decisions are finalised. These centres have been given the option of reducing their operating costs or increasing their business and deposit base to improve their viability. The approach indicates that closure may not be the only outcome for every location, as centres that can demonstrate stronger business potential or improve their cost structure could potentially remain operational under the restructuring process.
Relocation is another option included in the plan for centres that are not performing adequately in their existing locations. Centres considered to have limited business or investment potential could be shifted to areas where stronger demand for National Savings products and greater deposit potential may improve their performance. In cases involving relocation, regional directorates will be required to prepare business and relocation plans within 15 days. This would allow authorities to assess whether moving a centre could provide a more effective alternative to closing the facility completely.
The restructuring process also includes provisions concerning employees working at centres that may be closed. If a centre is ultimately shut down, details of all employees posted at that location will have to be submitted along with their residential locations and preferred locations for alternative postings. This information is expected to assist authorities in determining possible placements for affected staff within the remaining National Savings network. The proposed reduction in centres therefore involves not only changes to the physical branch structure but also a review of how employees are deployed across the organisation.
The Central Directorate of National Savings operates as a state-owned savings bank and functions as an attached department of the Finance Division under the Ministry of Finance. The organisation is headed by a director general and plays an important role in mobilising savings from individuals across Pakistan. Through its network of centres and savings products, National Savings collects funds from individual savers and channels them toward government financing needs.
National Savings also serves as an important intermediary in supporting the government’s fiscal requirements through non-bank financing. Funds raised from individual savers help finance the government’s fiscal deficit without relying solely on commercial banks or other conventional sources of borrowing. The proposed restructuring of the network is therefore significant for both the organisation’s operating structure and its role in mobilising domestic savings. As the government evaluates the 111 centres, the final decisions on closures, mergers, cost reductions and relocations will determine how National Savings balances expenditure control with continued access to savings services across different regions.
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