In 2023-24, investment in federal government savings schemes dropped by PKR 276.87 billion compared to last year. According to a government report, investments from July to March were PKR 104.99 billion.
During 2022-23, different saving schemes were invested with PKR 381.86 billion. Here is a detailed breakdown of investments in this fiscal year:
Special Saving Certificates Federal:
This year’s investment was PKR 12.70 billion, while PKR 79.01 billion last year.
Prize Bonds:
This year’s investment was PKR 1.72 billion, which was a decrease from the previous year’s PKR 10.06 billion.
Premium Registered Prize Bonds:
The current year witnessed an investment of PKR 0.88 billion. Which is also lower than last year’s investment of PKR 2.15 billion.
Short Term Savings Certificates:
This year’s investments are valued at around PKR 17.07 billion. Whereas in past years, it was worth approximately PKR29 .90 billion.
Special Saving Accounts Federal:
Investment in this category reduced significantly this time with only amounted to pkr38 .01billion compared to last time. Which reached up to pkr197 .45billion
Any significant reduction across these saving schemes shows a massive change in investor confidence that may have taken place due to alteration of economic conditions. And other external factors, as disclosed by an official statement issued regarding them today itself.
This season, investors spent only PKR 12.7 billion on special certificates, compared to PKR 79.01 billion saved in the previous session, indicating a significant lack of faith in this particular scheme unlike ever before. Thus pointing out another word for decline.
Similarly, we have observed a significant drop in investment in prize bonds, which amounted to about PKR 1.72 billion compared to last year’s PKR 10.06 billion. This indicates a considerable shift away from traditional savings methods.
Additionally, registered premium prize bonds did not attract much investment this time, with only PKR 0.88 billion compared to PKR 2.15 billion previously. This reflects investor preference for alternative avenues offering potentially higher returns.
Moreover, short-term saving certificate investment fell from twenty-nine crore ninety lakhs to seventeen points zero seven one arab, thus suggesting a decline in the safe-heaven mentality among investors during economic crisis periods or those looking for high-yielding options amid a low growth environment, choosing security over return.
The amount saved in special accounts has also gone down by one hundred and fifty-nine point four billion, which shows a lack of trust in savings as an investment option since last year’s value stood at PKR197.4 billion. The above decrease indicates a change in the behaviour and attitude of the investors towards these types of investments.
In summary, there was a noticeable drop in Federal Government Savings Schemes. Investors were unwilling to put their money into it because they needed more confidence that their money would earn any profit or give them good returns based on what we are currently facing economically. This phenomenon could make the government reconsider restructuring its various saving plans. Hence, we aim to win the faith of individuals who wish to participate actively next time, given our current situation involving a decreased participation rate following a significant reduction thereof.
