1
Table Of Contents
Chapter #
Topic
1:
Executive summary
2:
Introduction & History
3:
Current status of Organization
4:
Organizational Setup
5:
Hierarchy chart
6:
Objectives & Scope
7:
Primary & Ancillary services
8:
Primary Services
Defence saving certificates
Special savings certificates
Regular Income Certificates
Savings Account
Special Savings Account
Pensioners Benefit Accounts
Bahbood Savings Certificates
Prize Bonds
Features common to all schemes
9:
Ancillary Services (Departments)
Administration OR HRM
Treasury Section
Drawing and Disbursement Section
Publicity Section
Scheme Section
10:
Independent Department
Regional Account Office
11:
NSC center in Bahawalpur
12:
Intermediaries
13:
External Analysis
Customer Analysis
Competitive Analysis
Strategic Groups
Market Analysis
Size & Growth
Cost Structure
Environmental Analysis
Economic analysis
Technological
Government
Sociocultural
14:
Internal Analysis
Tangible Resources
Intangible Resources
Human Resources
15:
SWOT Analysis
2
16:
Suggestions & Recommendations
17:
References
18:
Appendices
19:
Annexure
3
Executive Summary
Mobilization of idle savings is necessary for the economic development of any country.
Pakistan is trying to do so through national savings, as said earlier, and to reinvest them
in the required or desired segment/ sector of economy.. The objective of national savings
was to
create motivations towards savings among people of
Pakistan . Now it is trying
well for this objective. People are concentrating toward the schemes of national savings.
National savings also, launched many schemes for the attainment of this purpose like
prize bonds, certificates etc.
The other objective of NSO was to provide assistance to SBP in controlling the quantity of
money in the country. Because suppose
in inflationary conditions SBP has to launch
securities and it feels difficulties to do soo in the absence of National Savings.
My objective of internship was to work in the practical environment of NSO for six weeks
to learn its functioning and analyze its performance. competitiveness, contribution in
economy & Structure. This report include all these
concerned areas of study
4
National Savings Organization
Introduction And History
The history of National Savings Organization dates back to the year 1873 when the Government
Savings Bank Act, 1873 was promulgated. During the First World War, the British Government
introduced several Schemes for collection of funds to meet the expenditure. It was in this context
that the Post Office Cash Certificates and, during the Second World War, post Office Defense
Savings Certificated were floated. The need to setup a separate agency was felt and a national
savings Bureau was established in 1943-44 as a attached department of Ministry of Finance of
the undivided Government of India. The department was headed by National Savings
Commissioner with the status of a Joint Secretary. At that time the main functions of Savings
Department were to initiated all policy matters and issue directives for the execution of policy
matters and issue directives for execution of policy decisions of the Central Government, and to
review the Savings Schemes for time to time. Gradually, Savings Organization were established
in almost all the Provinces of the sub-continent with the objectives of popularizing the Savings
Schemes among the masses as well as to supervise, guide and control the working of authorized
agents under their jurisdiction. The local authorities appointed the agents. They were paid
commission @ 2 ½ on the investment secured by them. These authorized agents were in those
days the only agency for securing investment in terms of Saving Certificates from the general
public.
In nutshell the central agency via, National Savings Bureau, Simla, was mainly concerned with
the policy and planning matters of the Saving Schemes whereas the responsibilities of execution
of various savings schemes 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 Government of Pakistan entrusted the Savings work to it, but this Bureau had its
own peculiarities. The Pakistan Savings Central Bureau had no independent entity and was not
given the same status as enjoyed bye Savings Bureau, Simla. The head of Pakistan Savings
Central Bureau was then called Central National Savings Officer, a junior Officer of the Ministry of
Finance with the status of as Under Secretary having some auxiliary staff. In 1953, the Pakistan
Savings Control Bureau was re-named as Central Directorate of National Savings and it carried
out the functions on the liens of National Savings Bureau Simla but as a part of 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. Such an
arrangement created a large number of administrative difficulties and stunted the growth of
savings. In view of these difficulties the Central Directorate of National Savings was given the
status of an Attached Department in September 1960, and was made responsible for all policy
matters and execution of various National Savings Schemes. Subsequently, it was also declared a
Technical Department by the Government. The Director General, National Savings (BPS-20) now
enjoys full powers of a Head of the Department. Till December, 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 activates was enlarged as the Central Directorate
5
started selling II-Rupee Prize Bonds, and subsequently engaged in the operations of other
savings schemes. This resulted in considerable expansion of the National Savings Organization.
Current Status Of Organization
These are 367 National Savings Canters all over Pakistan which are controlled by 12 Regional
Directorate of National Savings (RDNS).

Peshawar

Abbottabad

Lahore

Bahawalpur

Multan

Faisalabad

Quetta

Gujranwala

Islamabad

Hyderabad

Sukkur

Karachi
At present, this organization has a total sanctioned strength of 3365 employees in various grades
and its main units are as under:
a)
Central directorate of national savings, Islamabad.
b)
Directorate of inspection and accounts, Islamabad.
c)
Training institutes of national savings, Islamabad along with the sub-training institutes
at Karachi.
d)
12 Regional Directorates
Organizational Setup:
6
Hierarchy Chart
Objectives and Scope of Organization
Following are the purposes of the national savings. Now, it is trying hard for accomplishment of
these objectives for which it was formed.
Core Objectives
o
Generation of pool of funds for country
o
Provide secure system of Borrowing
o
Promotion of savings
o
Mobilization of idle savings
o
Motivation towards savings
o
Provide assistance to SBP
o
Establishment of a savings Banks
Generation of pool of funds for country:
The basic function of this organization is to generate the pool of funds from the nation by a
trusted and ensured govt. body.
Promotion of savings:
The main and basic purpose of national savings was to collect the small amounts of savings from
lower class & middle class of the society of Pakistan. Because the amounts of savings in this
segment of people are very low so they often try to avoid the investment of this amount. National
saving’s prime purpose
was to create confidence among these people and collect their small savings through its savings
schemes.
Mobilization of idle savings:
Mobilization of idle savings is necessary for the economic development of any country. So
7
Pakistan is trying to do so through national savings, as said earlier, and to reinvest them in the
required or desired segment/sector of economy.
Motivation towards savings:
The objective of national savings was to create motivations towards savings among people of
Pakistan. Now it is trying well for this objective. People are concentrating toward the schemes of
national savings. National savings also, launched many schemes for the attainment of this
purpose like prize bonds, certificates etc.
Provide assistance to SBP:
The other objective was to provide assistance to stat bank of Pakistan in controlling the quantity
of money in the country. Because suppose in inflationary Conditions. SBP has to launch securities
and it feels difficulties to do so in the absence of national savings.
Establishment of a savings Banks:
The last objective was to establish the savings bank in the country, which has performed all
saving function. No doubt other commercial banks were doing and trying their best to act as
savings bank but the speed of advancement was not satisfactory and people were not considering
them.
Primary and Ancillary Services
It is important to distinguish between primary and ancillary services. The term "primary" is used
to describe the business activity that provides the chief source of revenue for a business. The
term "ancillary" is used to describe the secondary business activities conducted by an
organization. The definition of check cashing restricts the focus to the population of businesses
that provide this service as a primary activity. This definition filters out the nearly uncountable
number of businesses that this organization is carrying its customers as an ancillary activity.
Primary Services
National Savings Schemes
1. Defence saving certificates.
2. Regular income certificates.
3. Special saving certificates /accounts.
4. Savings Accounts.
5. Prize Bonds.
6. Bahbood Savings Certificates.
7. Pensioners Benefit Accounts.
8. Special Savings Accounts
1
Defence Saving Certificates:
The Government of Pakistan introduced Defence Savings Certificate scheme in the year 1966.
This is the most popular scheme among investors. This scheme has Specifically been designed to
meet the future requirements of the depositors. This is the only scheme with 10 years maturity
with built in feature of automatic reinvestment after the maturity i.e. in case any certificate is not
encashed on maturity, the balance at Credit (principal + profit) without any deduction, shall be
deemed to have been reinvested for another period of 10 years on filling in a new application
form.
these Certificates are available in the following denominations
S.No.
Rupees
1.
500
2.
1000
3.
5,000
4.
10,000
5.
50,000
6.
100,000
7.
500,000
8.
1,000,000
8
SALIENT FEATURES:
1. Eligibility for Purchase:
These certificates can be purchased by a single adult, a minor, two adults in their joint names
with the options of payable to the holders jointly (Joint/A ) or payable to either (Joint/B). An
adult can also purchase these certificates on behalf of a single minor, two minors jointly or
himself (herself) and a minor jointly.
2. Procedure for Purchase:
These certificates can be purchased by filling in a prescribed form (SC/I), obtainable from any
National Savings Centre (NSC), Pakistan Post Office (PPO), State Bank of Pakistan, SBP BSC
(Bank).A copy of the Computerized National Identity Card (CNIC) or in case of a foreign national,
a copy of the Passport may be attached with the application form (SC/I).
3. Investment Limit:
There is no maximum limit of investment in this scheme.
4. Encashability:
Certificates can be encashed any time after one month from the date of purchase.
5. Mode of Deposit:
These certificates can be purchased by depositing cash at the issuing offices or by presenting a
cheque. The certificates shall immediately be issued on receipts of cash. However, in case of
deposit through cheque the certificates shall be issued from the date of realization of the cheque
after receipt of the clearance advice.
6. Profit Payable on Defence Savings Certificates:
The Finance Division, Govt. of Pakistan, according to the notification dated 19-07-2005 has
reviewed the rate of return on National Savings schemes. The return on Defence Savings
Certificates has been fixed as given in table below, for the certificates issued With effect from 0107-2005. The Defence Savings Certificates purchased prior to the above said notification shall
earn profit at the rate prevailing on the date of purchase. The year wise payable amount on initial
investment of Rs.100 is given as under:
After
completion of year 1
Rupees
105
2
112
3
119
4
128
5
138
6
150
7
163
8
183
9
211
10
247
D.S.Cs Purchased from 01-07-2005 (Current) @ 9.46%
Value on
completion
of period
Rs. 500
1 Year
525
2 Years
560
3 Years
595
4 Years
640
5 Years
690
6 Years
750
7 Years
815
8 Years
915
9 Years
1,055
10 Years
1,235
1000
1,050
1,120
1,190
1,280
1,380
1,500
1,630
1,830
2,110
2,470
5000
5,250
5,600
5,950
6,400
6,900
7,500
8,150
9,150
10,550
12,350
10,000 50,000
10,500 52,500
11,200 56,000
11,900 59,500
12,800 64,000
13,800 69,000
15,000 75,000
16,300 81,500
18,300 91,500
21,100 105,500
24,700 123,500
100,000 500,000
105,000 525,000
112,000 560,000
119,000 595,000
128,000 640,000
138,000 690,000
150,000 750,000
163,000 815,000
183,000 915,000
211,000 1,055,000
247,000 1,235,000
1,000,000
1,050,000
1,120,000
1,190,000
1,280,000
1,380,000
1,500,000
1,630,000
1,830,000
2,110,000
2,470,000
PREVIOUS YEAR’s RATES
D.S.Cs Purchased from 01-07-2004 to 30-06-2005 (Issue VIII & IX) @ 8.15%
D.S.Cs Purchased from 01-07-2005 to onward @ 10%
Note:
Zakat shall be deducted only once at the time of actual encashment on the value fallen due on
the relevant valuation date i.e. (1st Ramadhan) and not on the continuous reinvestment after the
maturity. A Zakat collection receipt duly signed by the two officers is issued in token of the
deduction of the amount.
Value on
of period
1 Year
2 Years
3 Years
4 Years
5 Years
Rs 500
520
545
575
610
650
1,000
1,040
1,090
1,150
1,220
1,300
5000 10,000 50,000 100,000
5200 10400 52,000 104,000
5450 10900 54,500 109,000
5,750 11,500 57,500 115,000
6,100 12,200 61,000 122,000
6,500 13,000 65,000 130,000
500,000
520,000
545,000
575,000
610,000
650,000
1,000,000
1,040,000
1,090,000
1,150,000
1,220,000
1,300,000
9
6 Years
7 Years
8 Years
9 Years
10 Years
695
1,390 6,950
750
1,500 7,500
830
1,660 8,300
945
1,890 9,450
1,095 2,190 10,950
13,900 69,500 139,000
15,000 75,000 150,000
16,600 83,000 166,000
18,900 94,500 189,000
21,900 109,500 219,000
695,000
750,000
830,000
945,000
1,095,000
1,390,000
1,500,000
1,660,000
1,890,000
2,190,000
With Holding Tax
As per directions of the Federal Government, the tax on profit from investment made on or after
the 1st July,2002, shall be deducted at source at the rate of Ten Percent (10%) of such profit if
such deposit exceeds Hundred and fifty Thousand Rupees (150,000) .
7. Transfer of Certificates:
From one Centre to another
Certificates are transferable from one city to another by applying on the prescribed form (SC/6)
obtainable from any NSC/ SBP BSC (BANK)office and also available at the website of National
Savings under the option of "Forms". The application duly filled in along with two copies of NIC
may be presented at the office of issue or at the office where the transfer is desired. However,
the certificates purchased from scheduled banks, State Bank of Pakistan, SBPBSC (Bank), PPO
and NSC can be transferred to and from the respective branches of the issuing office / agencies
only.
(b) From one person to another:
Certificates are transferable from one person to another on the expiry of non/encashability
period, by applying on the prescribed form (SC/4). In case of death of the purchaser, certificates
can be transferred in the name of nominee(s) without any fee/charges or to the legal heir(s) on
furnishing among others, a
succession certificate issued by the competent court of law, along with the following: 1.
2.
3.
4.
Application on the prescribed form (SC/4);
Death certificate of the purchase;
Attested photocopies of CNIC of the deceased and the nominee (s);
Specimen signatures of nominee (s) attested by a gazetted officer.
8. Pledging of Certificates:
Certificates can be pledged in favor of a gazetted government officer, Officers of the State Bank
of Pakistan, Officer of a Local Authority, or an Officer of a Government Sponsored Corporation or
an officer of a scheduled bank, in his official capacity, for the purpose of being treated as
security. The value of security shall be the payable value of the certificates including the amount
of profit.
9. Replacement of Lost/Destroyed Or Damaged Certificates:
If a certificate is lost, or destroyed, the purchaser or his nominee(s) or heir(s), as the case may
be, entitled to have duplicate certificates issued from the issuing office on completion of certain
requirements which, among others, include the following:i) A copy of First Information Report (FIR) or "Roznamcha" in case the value exceeds Rs.10,000.
ii) Application for the issuance of certificates clearly mentioning the circumstances leading to the
loss.
iii) Photocopies of CNIC of the purchaser(s).
iv) Deposit of prescribed fee with the issuing office.
v) Indemnity Bond on Rs.50 stamp paper (specimen obtainable from any NS Centre).
10. Investment from Abroad:
Investors from abroad may send applications along with remittance of the desired amounts either
directly to the Director General or concerned Director/Joint Director or to the National Savings
Centers, where investment is desired to be made. The remittance of the amount may be made
either through a cheque or bank draft in the official designation of the concerned payee. The
certificate shall be issued/account opened after the remittance accompanying the application is
enclosed and credited to Government Account.
The Principal and profit accrued on a certificate issued/account opened, against foreign exchange
received through remittance or transfer from foreign currency account or surrendering foreign
exchange bearer certificates/dollar bearer certificates shall be payable abroad to the purchaser in
foreign currency, if so desired by the investor.
The amount received in foreign currency shall be converted into Pakistani rupees, in accordance
with the exchange rates prevailing on the date of clearance of the bank draft. The amount of
principal or profit will be converted into foreign currency in accordance with the exchange rates
prevailing on the date of remittance.
11. Sale Of Defence Savings And Special Savings Certificates Abroad Through
Overseas Branches of Scheduled Banks of Pakistan.
All branches of Pakistani Scheduled Banks Operating Abroad are allowed, in principle, to sell
Defence Savings Certificates (DSCs)/Special Savings Certificates (SSCs) to Overseas Pakistanis
against foreign currency on repatriable basis provided regulatory sanction/permission of the
concerned country is available. The payment of principal and or profit of certificates, so issued is
also payable abroad in local currency from the same branch of the bank. These certificates are
10
transferable from one person to another and also to Pakistan in any branch of the same bank
from where the certificate purchased.
2. At the time of purchase, the face value of the certificates in Pak. Rupees is converted in local
foreign currency at the prevailing rate for Pak. Rupees so as to generate Pak. Rupee equivalent to
the face value of the certificate required. Similarly, at the time of encashment of profit and
principal, the payable rupees amount is converted into foreign currency at the T.T. spot buying
rate for Pak. Rupees on the date of payment.
3. In case of death of the purchaser, the amount of principal and or profit accrued on these
certificates is payable to nominee(s) or legal heirs, if so desired?
4. Recently, the sales of Defence Savings Certificates and Special Savings Certificates have been
started by the branches of HBL and UBL Operating in UAE after the grant of regulatory
permission by the Central Bank UAE for sale of these securities of Government of Pakistan. The
sale of these certificates would also be started in other countries as and when necessary
regulatory permission is accorded by the Central Bank of the respective
countries.
2
SPECIAL SAVINGS CERTIFICATES
This scheme being of three years maturity was introduced in February, 1990 keeping in view the
periodic needs of depositors. These certificates are available in the denomination of
Rs.500, 1000, 5000, 10000, 50000, 100000, 500000 and Rs.1,000,000/
Profit is paid on the completion of each period of six months.. In case, the profit earned on these
certificates is not drawn on due date, the undrawn profit will automatically stand reinvested from
date of its accrual as per following tables:
S.S.Cs purchased from 01-07-2005 (Current) @ 8.60%
After
Completion
Of period
1st six
Months
2nd six
Months
3rd six
Months
4th six
Months
5th six
Months
6th six
Months
Rs. 500
1000
5000
10,000
50,000
100,000
500,000
1,000,000
21
42
210
420
21,00
4,200
21,000
42,000
21
42
210
420
21,00
4,200
21,000
42,000
21
42
210
420
21,00
4,200
21,000
42,000
21
42
210
420
21,00
4,200
21
42
210
420
21,00
4,200
21,000
42,000
24
48
240
480
24,00
4,800
24,000
48,000
21,000
42,000
Compound Rate of Interest on SSCs
Certificates purchased from 01-07-2005 (Current)
Profit (in Rs.) On completion payable on a registration of each Rs100.00
of period 6 months
1 Year
1 ½ Year
2 Years
2 ½ years
Nil
4.200
8.576
13.133
17.884
1st six months
4.200
8.576
13.133
17.884
2nd six months
4.200
8.576
13.133
18.481
3rd six months
4.200
8.576
13.733
4th six months
4.200
9.176
5th six months
4.800
3 Years
22.831
23.431
PREVIOUS YEAR’S RATES:
S.S.Cs purchased from 01-07-2004 to 30-06-2005 (Issue VII & VIII) @ 6.95%
After
Completion
Of period
1st six
Months
2nd six
Months
3rd six
Months
4th six
Months
5th six
Rs. 500
1000
5000
17
34
170
17
34
17
17
10,000
50,000
100,000
340
1,700
3,400
17,000
34,000
170
340
1,700
3,400
17,000
34,000
34
170
340
1,700
3,400
17,000
34
170
340
1,700
3,400
500,000
17,000
1,000,000
34,000
34,000
11
Months
6th six
Months
17
19.25
34
170
38.50 192.50
340
385
1,700
3,400
17,000
34,000
1,925
3,850
19,250
38,500
Compound Rate of Interest on SSCs:
On certificates purchased from 01-07-2004 to 30-06-2005 (Issue VII & VIII)
Note:
(i) Zakat is deducted at the time of actual encashment @ 2.5% on the principal amount (Face
Value) where applicable.
(ii) With Holding Tax : As per directions of the Federal Government, the tax on profit from
Investment made on or after , the 1st july,2002, shall be deducted at source at the rate of ten
percent (10%) of such profit if such deposit exceeds Hundred and fifty Thousand Rupees
(150,000).
3
Regular Income Certificates
Keeping in view the monthly requirements of the general public, this five years' maturity scheme
was launched on 2nd February, 1993. These certificates are available in the denomination of
Rs.50,000, Rs.100,000, Rs.500,000, Rs.1,000,000, Rs.5,000,000 & Rs.10,000,000/=. Profit is
paid on monthly basis reckoned from the date of issue of certificates.
Who Can Invest?
These certificates can be purchased by a single adult, a minor or two adults in their joint
names with the options of payable to the holders jointly (Joint-A ) or payable to either (JointB). An adult can also purchase these certificates on behalf of a single minor, two minors jointly
or himself/herself and a minor jointly. In addition to above individual investors, the following
institutions are also allowed to invest in the scheme:
a.
Registered Charities (Non-profit bodies).
b.
Public Sector Enterprises excluding Banks.
c.
Private Educational & Health Institutions.
d.
Employees Old Age Benefit Institutions (EOBIs).
e.
Private Corporate Sector registered with the SECP excluding Banks.
f.
Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies.
How to Purchase?
These certificates can be purchased from any National Savings Centre (NSCs) or from Pakistan
Post Office (PPO) by filling in a prescribed form called SC-1, which is available at all, the above
offices of issue free of cost. A copy of the National Identity Card or in case of a foreign
national, a copy of the Passport may be attached with the application form (SC-I).
Mode of Deposit.
These certificates can be purchased by depositing cash at the issuing office or by presenting a
Cheque. The certificates shall immediately be issued on receipt of cash. However, in case of
deposit through Cheque the certificates shall be issued from the date of realization of the
Cheque after receipt of the clearance advice.
What Is The Investment Limit.
The minimum investment limit is Rs.50, 000/-, however, there is no maximum limit of
investment in this scheme.
What about Redemption.
These certificates are encashable any time subject to deduction of service charges at the
following rates:
12
If encashed before completion of one year from the
of issue.
date
@ 2.00% of the face value
If encashed after one year but before completion of 02
@ 1.50% of the face value
years from the date of issue.
If encashed after two years but before completion of 03
@ 1.00% of the face value
years from the date of issue.
If encashed after three years but before completion of 04
@ 0.50%of the face value
years from the date of issue.
What is the return?
At the prevailing rates monthly profit of Rs.795/- is paid on investment of each Rs.100,000/-.
This way the profit rate works to 9.54% p.a. However, the facility of automatic reinvestment of
profit to earn further profit is not available in this scheme.
Tax & Zakat Status.
The profit earned on these certificates is subject of deduction of 10% withholding tax at
source. However, the investment made in this scheme is exempt from collection of Zakat.
4
Savings Account
This is the oldest scheme among the National Savings instruments. The scheme has been
designed to encourage the small savers and to meet their day to day needs. This is an ordinary
account and frequent withdrawals (twice a week) can be made through this account. .
Who Can Invest?
The account can be opened by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can
also invest in these account on behalf of a single minor, two minors jointly or himself/herself
and a minor jointly. In addition to above individual investors, the following institutions are also
allowed to invest in the scheme:
a.
Registered Charities (Non-profit bodies).
b.
Public Sector Enterprises excluding Banks.
c.
Private Educational & Health Institutions.
d.
Employees Old Age Benefit Institutions (EOBIs).
e.
Private Corporate Sector registered with the SECP excluding Banks.
f.
Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies.
How to Invest?
These accounts can be opened at any National Savings Centre (NSCs) and Pakistan Post Office
(PPO) by filling in a prescribed form called DA-1, which is available at all, the above offices of
issue free of cost. A copy of the National Identity Card or in case of a foreign national, a copy
of the Passport may be attached with the application form
Mode of Deposit.
The accounts can be opened by depositing cash at the issuing office or by presenting a cheque.
The passbook and withdrawal slip shall immediately be issued on receipts of cash. However, in
case of deposit through Cheque the account shall be opened from the date of realization of the
Cheque after receipt of the clearance advice.
13
What Is The Investment Limit.
The minimum investment limit is Rs.100/- in the scheme besides no maximum limit. However,
only one account can be opened by person at an office of issue.
What about Encashment.
The deposits can be withdrawn any time from the date of deposit. However, there is a limit of
two withdrawals within a week's time.
What is the Return?
Profit in this account is credited on 30th June every year and is worked out on the lowest
balance of an account between the close of the sixth day and end of the month. The current rate
of profit is 6.50% p.a.
Tax & Zakat Status.
At present the profit earned on the accounts, wherein the average balances within a month do
not exceed the limit of Rs.150, 000/- are exempt from levy of withholding tax. However,
withholding tax @10% is deductible at source on the profits earned on the accounts, wherein
the balances exceed the aforesaid limit. Zakat is also applicable as per rules.
5
Special Savings Account
A three years maturity scheme introduced in February, 1990. The deposits are maintained in
form of an account. Profit is paid on the completion of each period of six months.
Who Can Invest?.
The account can be opened by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can
also invest in these account on behalf of a single minor, two minors jointly or himself/herself
and a minor jointly. In addition to above individual investors, the following institutions are also
allowed to invest in the scheme:
a.
Registered Charities (Non-profit bodies).
b.
Public Sector Enterprises excluding Banks.
c.
Private Educational & Health Institutions.
d.
Employees Old Age Benefit Institutions (EOBIs).
e.
Private Corporate Sector registered with the SECP excluding Banks.
f.
Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies.
How to Invest.
These accounts can be opened at any National Savings Centre (NSCs) and Pakistan Post Office
(PPO) by filling in a prescribed form called DA-1, which is available at all, the above offices of
issue free of cost. A copy of the National Identity Card or in case of a foreign national, a copy
of the Passport may be attached with the application form.
Mode of Deposit.
The accounts can be opened by depositing cash at the issuing office or by presenting a cheque.
The passbook and withdrawal slip shall immediately be issued on receipts of cash. However, in
case of deposit through cheque the account shall be opened from the date of realization of the
cheque after receipt of the clearance advice.
14
What Is The Investment Limit?
The minimum investment limit in this scheme is Rs.500/-.
There is not maximum limit,
however, the deposits are required to be made in multiple of Rs.500/-.
When Can I Encash My Certificates?
The deposits can be withdrawn at par any time after one month from the date of purchase.
However, no profit is payable in case the withdrawals are made before completion of 6 months.
What Will I Get As Profit?
At the prevailing rates the profit is paid @ 9.00% p.a. for 1st five profits and the last profit @
10.50% p.a. However, if the profit is not withdrawn on due date, it will automatically stand
reinvested and would be calculated for further profit on completion of the next 06 months
period.
Tax & Zakat Status.
At present, the profit earned is exempt from withholding tax, if the total investment in the
scheme by the investor(s) does not exceed Rs.150, 000/-. However, withholding tax @ 10%
is deductible at source on the profit(s) earned if the total investment exceeds Rs.150,000/- by
the investor(s). The Zakat is collected at source as per rules at the time of encashment.
However, no Zakat is not collected in case of reinvestment.
5
Pensioner's Benefit Account
Keeping in view the hardships faced by the pensioners and to guard them against the declining
rate of return on National Savings Schemes, this ten years' maturity scheme was launched by the
Government on 19th January, 2003. 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.
Who Can Invest?.
The pensioners of Federal Government, Provincial Governments, Government of Azad Jammu &
Kashmir, Armed Forces, Semi Government and Autonomous bodies are allowed to invest.
How To Purchase?
These accounts can only be opened at the National Savings Centre (NSCs) by filling in a
prescribed form called DA-1, which is available at the offices of issue free of cost. A copy of the
National Identity Card and the copy of Pension Payment Order may be attached with the
application form.
Mode of Deposit.
The account can be opened by depositing cash at the issuing office or by presenting a cheque.
The account shall immediately be opened on receipt of cash. However, in case of deposit through
cheque the account shall be opened with effect from the date of realization of the cheque after
receipt of the clearance advice.
What Is The Investment Limit?
The minimum investment limit is Rs.10, 000/-, whereas, the maximum limit is Rs.3, 000,000/-.
If an investor has already opened an account, he is eligible to invest only two subsequent
deposits in that account.
What About Encashment?
The deposits can be withdrawn any time after date of deposit subject to deduction of
service charges at the following rates:
15
if withdrawn before completion of one year from the date of deposit.
@
of the face value
if withdrawn after one year but before completion of 02 years from
the date of deposit.
1.00%
@
0.75%
of the face value
if withdrawn after two years but before completion of 03 years from
the date of deposit.
@
0.50%
of the face value
if withdrawn after three years but before completion of 04 years from
the date of deposit.
@
of the face
0.25%
value
What Will I Get As Profit?
At the prevailing rates monthly profit of Rs.970/- is paid on investment of each Rs.100,000/-.
This way the profit rate works to 11.64% p.a. Automatic reinvestment of profit facility to earn
further profit at the scheme's rate is not admissible in this scheme; however, further profit is
paid on undrawn profit at the rate applicable on Savings Account.
Tax & Zakat Status.
The withholding tax is not collected on the profit earned on the deposits made in this scheme.
The investment made in the scheme is also exempt from Zakat.
6
Bahbood Savings Certificates
Keeping in view the hardships faced by the widows and senior citizens and to guard them against
the declining rate of return on National Savings Schemes, this ten years' maturity scheme was
launched by the Government on 1st July, 2003. Initially the scheme was meant for widows only,
however, the Govt. later decided to extended the facility for senior citizens aged 60 years and
above with effect from 1st January, 2004. These certificates are available in the denominations of
Rs.5,000/-, Rs.10,000/-, Rs.50,000/-, Rs.100,000/-, Rs.500,000 and Rs.1,000,000/-. Profit is
paid on monthly basis reckoned from the date of purchase of the certificates.
Who Can Invest ?
Only widows and senior citizens aged 60 years and above are eligible to invest.
How to Purchase?
These certificates can only be purchased from the National Savings Centre (NSCs) by filling in a
prescribed form called SC-1, which is available at the offices of issue free of cost. A copy of the
National Identity Card and necessary evidence regarding eligibility is required to be attached
with the application form.
Mode of Deposit.
The certificates can be purchased by depositing cash at the issuing office or by presenting a
cheque. The certificates shall immediately be issued on receipt of cash. However, in case of
deposit through cheque the certificates shall have the effect from the date of realization of the
cheque after receipt of the clearance advice.
What Is the Investment Limit?
The minimum investment limit in this scheme is Rs.5, 000/-, whereas, the maximum limit is
Rs.3, 000,000/-. Investment in allowed in multiple of Rs.1, 000/-.
16
What about Redemption?
The certificates can be encashed any time after issuance subject to deduction of service charges
at the following rates:
If encashed before completion of one year from the date of purchase.
If encashed after one year but before completion of 02 years from the
date of purchase.
If encashed after two years but before completion of 03 years from the
date of purchase.
If encashed after three years but before completion of 04 years from
the date of purchase.
If encashed after completion of 04 years
@ 1.00% of the face value
@ 0.75% of the face value
@ 0.50% of the face value
@ 0.25% of the face value
No service charges
What is the return?
At the prevailing rates monthly profit of Rs.970/- is paid on investment of each Rs.100, 000/-.
This way the profit rate works to 11.64% p.a. Automatic reinvestment of profit facility to earn
further profit is not admissible in this scheme at the scheme's rate; however, further profit is
paid on undrawn profit at the rate applicable on Savings Account.
Tax & Zakat Status.
The withholding tax is not collected on the profit earned on these certificates. The investment
made in this scheme is also exempt from Zakat.
7
Prize Bonds
Introduction
Prize Bonds are bearer type of security available in the denominations of
Rs.200, Rs.750, Rs.1, 500, Rs.7, 500, Rs.15, 000 and Rs.40, 000.

These bonds are issued in series.

Each series consist of one less than 1,000,000bonds.

No fixed return is paid

Prize draws are held on quarterly basis.

These Bonds shall enchased at par any time after their issue

These bonds can b purchased or sale at the following places, namely: 1.
Office of the Stat Bank of Pakistan.
2.
Banks authorized in this behalf by the State Bank of Pakistan.
3.
National Saving Centers.
17
Denomination
First Prize
No.
Amount
2nd Prize
No.
Amount
3rd Prize
No.
Amount
Rs.
200/-
01
Rs.
500,000
03
Rs.
150,000
2,300
Rs.
1,000
Rs.
750/-
01
Rs. 1,000,000
03
Rs.
300,000
1,376
Rs.
7,500
Rs.
1,500/-
01
Rs. 2,000,000
03
Rs.
600,000
1,376
Rs.
15,000
Rs.
7,500/-
01
Rs. 10,000,000
03
Rs. 3,000,000
1,376
Rs.
75,000
Rs.
15,000/-
01
Rs. 20,000,000
03
Rs. 6,000,000
1,376
Rs.
150,000
Rs.
40,000/-
01
Rs. 50,000,000
03
Rs. 15,000,000
1,376
Rs.
400,000
Terms and Conditions
1. The Federal Government may withdraw any of the Bonds of circulation time by notification
in the official Gazette.
2. No claim of a prize on the Bonds so withdrawn shall be admissible after the issue of
the notification under sub-rule.
3. These Bonds may be purchased any time on payment in cash and no application form shall be
necessary.
4. The sale of these Bonds shall be opened till such time as the Federal Government withdraws
the Bonds.
5. The Bonds shall not bear interest but lots shall be drawn for each series quarterly for prizes on
Such dates as specified below, namely:-
Draw Schedule
Rs. 200
15th day of March, June, September and December every year.
Rs .750
15th day of January, April, July, and October every year.
Rs .1500
15th day of February, May, August and November every year.
Rs. 7500
1 st
Rs .15000
1 days of January, April, July and October every year.
Rs .40000
1st days of March, June, September and December every year.
day of February, May, August and November every year
st
The draws are held under common draw method and the numbers of prizes are same for each
series. It means that if 50 series of Rs.200 Prize Bond are in circulation. Then on each draw we
have 50 winners of 1st prize and 150 winners of 2nd Prize and so on. The number and amount of
prizes on various denomination of prize bonds for each series is shown in the following table:
Feature Common to All Schemes:
1:
Government of Pakistan guarantees the security of investment.
2:
Certificates are transferable from one person to other expect Bahbood saving certificates.
3:
Certificates /accounts are transferable from one city to another city’s centre.
4:
Expect Bearer certificates, duplicate certificates can be issue only in case of lost, theft
or waste.
5:
Certificates can be pledge with Government officers, scheduled bank etc. As security.
6:
Principal and profit of the investment made from the abroad can be got repatriated abroad in
foreign exchange, provided investment has been made in foreign exchange.
7:
Zakat is collected as per law/rules, except on regular income certificates, Pension benefit
account and Behbood savings certificates, which are totally exempt from Zakat at source.
8:
In case of
Defence savings certificates is collected only once at the time of actual
encashment on the payable value (principal plus profit) as on the valuation date immediately
preceding such encashment.
18
9:
In case of special saving certificates and accounts , Zakat is collected only once on principal
amount on the date of actual encashment/withdrawal.
10: Non-resident Pakistan can also invest in these schemes.
11:
The investors have the facility of making nomination.
12: Regular income certificates and Bonds are totally exempt from tax.
13:
There is no tax on profit which is get from one lack and fifty thousand (150,000) rupees
except regular income certificates and Bonds.
14:
Yet in case of more then one lack fifty thousand (150,000) rupees, there is a deduction of
Tax at the rate of 10% on profit more over the amount which is invested before 30 ,June
2001 is totally exemp from the tax.
15: According to the rules, the amount is considered reinvest from the date maturity. If and
there is no encashment after completing maturity.
16: In case of indifferent time investment, according to rules and regulations and rate of profit,
the investment will complete its maturity.
The above facilities are provided subject to the completion of formalities laid down under these
rules.
Procedure of Transfer of Certificate from One Center to Another:
Sc-6 from is used for transfer from one center to another. When an investment is desires to
transfer his/her certificate(s) from one centre to another, the following requirement will be
fulfilled by the investors.
1.
Application for transfer:
(a) He/She shall personally present a written application on the prescribed form SC-6 in
duplicate at the centre where the investment is originally being maintained along with the
certificate(s).
(b) Application for transfer of certificates(s) may also be presented in duplicate along with the
certificates(s), at the center where these are desired to be transferred, which shall be sent to
the original center under registered post.
(c) A stamp “Under Transfer” shall be affixed on the reverse of certificate(s) being transferred
And on unused profit coupons of profit coupon book before sending to the center concerned.
2. Duplicate National Identity card copy for every registration (attested by incharge).
3. Original Certificate.
4. SC-6 in duplicate.
5. Profit coupon slip if issue.
6. For transfer of each registration of certificates, separate application shall be required to be
presented.
7. In
case of illiterate person:
A person known to the officer concerned or to his/her satisfaction must attest his/her thumb
impression on the application.
8. In
case of Joint investment:
‘A’ or ‘B’, the application must be signed by both the investors.
9. In
case of minor:
The application should be signed by the person who has originally made the investment on
minor’s behalf along with certificate that minor is alive are certificate are being transferred his
/her behalf.
The following steps be kept in view while examining the application
for transfer of certificate(s)
1. The signature on SC-6 form should tally with those recorded on the originally application.
19
2. In case of illiterate person: A person other then the staff members
Known
to
the
centre
incharge
should
be
attested
Thumb
impression.
3. The certificate(s) desired to be transferred, are actually issued in the name of applicant(s)
and not enchased, pledged, report lost, stolen, burnt or spoilt and that .no of applicant
certificate(s) have been issued in view there of.
4. It shall be ensured that no audit observation in respect of the registration being transferred is
Pending for rectification.
5. Serial Nos. of profit coupons book shall be cancelled and kept along with the paid profit
coupons for the day.
Transfer not allowed from one centers to another
Transfer of certificate(s) shall be refused in the following cases:
1. within the city (local center).
2. Part of any one registration (local period).
3. Before the expiry of period of non-encashability.
4. within three moths of transfer from another centre.
5. Duplicate certificate(s) issued in? Of.
6. After the death of certificate holder.
7. In the absence of life certificate of minor fro his/her guardian.
8. The certificates of minor after he/she has attained majority until the operations are allowed to
him.
9. Court restrictions.
10. Both the NSCs we located at the same station except with the prior permission of controlling
officer.
Note: All the transferred cases shall e attended on ‘Top Priority’ basis ensuring that no delay is
occurred on the part of any one concerned with it and the whole processes shall be completed
with in one month at the most.
Transfer of certificate(s) from one person to another
SC-4 is a form which is for transfer from one person to another
1:
Subject to the fulfillment of provisions of rules both the transferred(s) and the transferee(s)
Shall apply in person to the centre on form SC-4 dully filled in and complete along with
certificate(s) and photo copies of NIC in his/her application.
2. After verifying by center in charge the application shall obtain the approval from, the
Regional Directorate and otherwise the requested transfer.
3:
The original certificate(s) shall be discharged under dated signatures of the transferee.
4.
New certificate(s) issued in the name of transferee which shall bear the same date as
of original certificate.
5.
The un-used Profit Coupons of a Profit Coupon book issued, if any shall have to be
Surrendered by original holder, cancelled & attached.
6.
New Profit Coupon book issued to the transferee their serial numbers, and the office of issue
of each.
7.
Name and address of the applicant.
8.
Face value of the certificates it is sought to transfer, their serial numbers, and the office
of issue of each.
9.
Name of person to whom transfer is proposed.
10. Relationship (if any with) the person to whom transfer is proposed.
11. The full circumstances, which necessitate the transfer
12. A fee of rupee one only will be payable on an application for transfer.
Nomination
In the case of purchase of certificate by individual or individual, whether adult or minor , holding
20
the certificate singly or jointly, nomination may be made by purchase(s) of certificate in the
application form at the time of the purchase, specifying the amount, whether whole or in part
receivable purchaser(s). A holder of a certificate may, at any make a nomination if he has not
done so earlier or, by notice to the issuing Authority, varies or cancels his previous nomination.
In case of more then one nomination they shall be presumed to hold equal shares if the same is
not specified in the application for purchase of certificate(s). In case of more then one
nomination, payment can be made to one of the nominees when the others have not lodged their
claims.
Certificate(s) purchase on behalf of minor
Transactions there of on attaining maturity.
When a minor holder of certificate attains maturity the person who purchased the certificate(s),
on his/her behalf or the minor himself/herself attaining maturity shall be required to intimate the
fact of his/her having attained maturity to the center on a plain paper along with following
documents:1: An attested copy of NIC along with date of attain maturity.
2: Specimen signatures of minor duty attested certificate.
3: The original certificate.
Ancillary Services

Administration Section or Human Resource Management.

Scheme Section.

Treasury Section.

Drawing and Disbursement Section.

Publicity Section.
The separate independent department of NATIONAL SAVINGS.

Regional Accounts Office.
1
HUMAN RESOURCE MANAGEMENT/ ADMINISTRATION SECTION
Human resource management is the great asset for any organization. This is off balance sheet
precious asset. The personal of any organization are the pillars of the success of that
organization.
The importance of human resource management keeps important place in the financial
institutions like banks and saving centers because these institutions requires great deal of
expertise from its employees.
National savings is the important financial institution under Govt. control. Due to its importance it
requires high class personal. Under this topic. We will discuss the procedure of managing the
Human Resources in National Savings. In details for the discussion of all aspect, we have
classified this topic under following such headings:
1. EMPLOYEES STATUS.
2. EMPLOYEES DISCIPLINE.
3. PENALTIES.
4. EMPLOYEES LEAVES.
5. ALL FIELD EMPLOYEES SCALE.
6. DETAILS OF DIFFERENT CENTERS
21
7. RECRUITMENT.
8. RETIREMENT.
9. TRAINING.
10. INCENTIVES FOR MOTIVATION.
Now all the topics will be discussed in brief but in comprehensive way.
1. Employee’s status.
All these are civil servants. Civil servant act 1973, an Act to regulate the appointment of person
do, and the terms and conditions of service of persons in the service of Pakistan. (All central
Govt. employees) apply this act.
2. Employees Discipline.
Conduct rules 1964, civil employees are bound to Govt. conduct rules. When any employ
inefficient rule may be involve corruption.
3. Penalty.
Two type of penalty:
(1) Minor penalty.

Censure mean, just tough warning

With holding, for a specific period, promotion or increments otherwise ban for
unfitness for promotion or financial advancement in accordance with rule or order
training to a service or post.

Stopped, for a specific period, at any efficiency bar in the time scale, otherwise than
for unfitness, to cross such far.

Recovery from pay of the whole or any part of any pecuniary loss cause to Govt. by
negligence or break of orders.
(2) Major penalty.

Reduction to a lower post or time scale, or to a lower stage.

Compulsory retirement

Removal from service. (May be work other Govt. institutions).

Dismissal from service. (Not work any Govt. institute).
4. Employee leaves.
Calendar year 20 casually vacation every holiday can not be claimed as a matter of authority
7. Recruitment.
Recruitment is very important step in the H.R management in the financial institutions like
National saving. It requires a great deal of experience National saving was adopting two methods
for recruitment of employees up to last year.
How Recruitment Proceed.
Gunman.
Direct recruitment no promotion and qualification is primary pass. People who are related to
retire Army, Police, and any security department prefer these persons.
Driver
Direct recruitment but driving license is necessary.
Lower Division Clerk (L.D.C).
Qualification is must be metric and typing speed is 25 per second. The maximum age of person
25 years .10% promotion quota for gunman and 90% direct recruitment.
Upper Division Clerk (U.D.C).
Qualification is must be necessary inter but typing is not necessary.50% promotion quota for
22
(L.D.C) and 50% direct recruitment.
Deputy National savings officer.
No recruitment, 100% promotion quota.
National saving officer grade 16
50% quota of (D.N.S), and 50% direct recruitment, qualification is M.A Economics, statistics,
commerce, (2nd division at least) through PSC (public service commission).
50% reserve for promotion and 50% direct recruitment through (PSC), the qualification is must
be necessary M.A economics, statistics, commerce, (First division).
Joint director
100% promotion quota.
8. Retirement
When age of any of person is completed 60 years then this person is retire the job. But if any
person wants a retirement before 60 years. If any person service is completed for 25 years they
voluntarily retire they request the institution and easily get the retirement. During job a person
may be serve ill/accident on the basis of medical ground they easily get the retirement (no age
limit in this situation). If the Government service is completed for 10 years then the person avail
all facilities .but if the Govt. service is not completed for 10 years than the person is not availing
all facilities. We can calculate the pension by this formula.
Pension = last pay down * length of the service *7/300
Length of service =date of joining years – date of retirement years.
Then the answer is the gross profit.
Pension =half the gross pension* 12* commutation factor.
Suppose the gross pension is 9000 than we calculate the net pension
Pension =4500* 12*18.3129
9. Training
Training is the process of refinement of abilities of the employees. National savings uses two
methods of training for its employees so that they can face the challenges of modern techniques.
These methods are:
(1) Initial training
(2) Routine training
(1) Initial Training
This method of training is used for those employees who are directly recruited in the officer of
national savings. So after selection, they are given training in the training center. National saving
has training institute in Islamabad and a sub-training institute in Karachi.
(2)Routine training
This type of training is given to employed workers. Who are already working in national saving.
National saving offers two kinds of this training:
Training in Pakistan includes the training through regular courses, refresher courses that are of
short term in nature in the training institute at Islamabad.
The directorate of national savings also arranges training in aboard. It keeps membership of
international savings operation of ISBI
in Geneva.
10. Incentive for Motivation:
No doubt, National Savings is the Govt. institution it has to adopt the financial rules and
regulations of Govt. Regarding financial compensation But for the motivation of it employees, it is
23
giving following incentives to them along with the pay package.
(1) Advance increments are given to the able workers.
(2) Money rewards are also given due to the height of performance of worker.
2
TREASURY SECTION
Function of National Savings, Treasury:

To receive cash, Cheques and prize bonds from NSCs.

To meet cash and prize bond requirement of NSCs.

To collect private and Govt. Cheques from NSCs for clearance and
deposit.

To accept RAO Cheques for payment.

To remit cash and Cheques for deposit /collection in to state bank of
Pakistan

To issue Govt. Cheques for drawing cash or for payment to third party.

To keep stock of blank deposit/savings certificates.

Safe custody of valuable documents or articles under the directions of
joint director.
3
DRAWING & DISBURSEMENT SECTION
DRAWING & DISBURSEMENT SECTION
This section is working only in the Regional Directorate of National Savings, and is controlling all
the centers of the concerned Regional as like in Bahawalpur region this section is controlling 22
centers and regional office. All payments, such as pay & allowances, T.A, etc. of the officers and
staff in the National Savings Organization, including contingent expenditure are made by the
Regional Accounts Officer through the respective Directorate in whose area the claim arises. This
section sanctions the expanses of all the centers including regional offices. The ministry of
finance gives funds to this section through “New Item Statement” on annual basis for the
expenses of national savings , so this section distribute the funds to centers according to their
performance. The expenses may be for the:
Purchase of durable goods as like:
Transport, Machinery and equipment Furniture and Fixtures and Others.
Repairs and Maintenance of durable goods and work:
Transport, Machinery and equipment Furniture and Fixtures and Others.
Commodities and Services as like:
Transport of goods (Freight cartage, coolly charges) P.O.L charges aero plane, Helicopter, staff
cars, Motorcycle, etc.) Conveyance charges.
Communication:
Postage and Telegraph, Telephone and Trunk call, Telex and tele-printer Courier and pilot service.
24
Utilities:
1: Gas, Water, Electricity, Hot and- Cold water charges, Office Stationery,
2: Printing, Newspapers, Periodicals and books, Uniform and Liveries, Rent royalties, Rates and
Taxes.
3: This section is also dealing with the pay bills of the employees of the national savings, various
Allowance are calculated by this section for the employees of the national savings as like
House Rent allowance, Conveyance allowance, Dearness allowance, washing allowance,
Overtime allowance, Medical charges and Rest and Recreational allowance. In addition to these
Allowance this section is also deducting various deductions as like Benevolent fund, General
Provident Fund, Postal life insurance, income tax, Trade Tax, House building advance, Motor
Cycle advance, House Rent etc
4: This section is dealing with expenses of the office and employees of this department. Now we
are concerned with the proper way to give sanction for the bill of expenses to the employees
and offices of this department.
All this procedure is done through various sorts of forms as like T.R 30, T.R 16, T.R 31, T.R 22,
T.R 25, T.R 20, and pension papers etc. Through these sorts of form this section is dealing with
the expenses of the national savings.
These forms have various heads of allowance and deductions of pay as like:

T.R 20: This form is used to show the Traveling allowance of the Gazetted Officers.

T.R 22: This is a pay bill for the Non-Gazetted employees; in this from the allowance
and deductions are recorded.

T.R 16: This is a pay boll of the Gazetted Officers, and shows all the allowance and
deductions.

T.R 31: In this form the expenses of the officers are recorded, the expenses are taken
over by the form T.R 30.
4
PUBLICITY AND STOR SECTION
PUBLICITY AND STORE SECTION:

In the publicity of schemes agencies are involved, because national savings are not
paying any reward to them.

After the publicity schemes the paper owner send bill along with tear sheet to concerned
advertising agency.

The budget for advertisement is about 15 million, (Overall Publicity).

Payment for publicity is made by cheque.
Govt. Rate
Govt. commercial Rates
Govt. Rate
for govt. institutions.
for Banks.
for private Banks.
Electronic Media:
PTV.PTV WORD,






In NSC Govt. Rates are applicable.
The add time in PTV is minimum 7 seconds.
If in ordinary time (any time) the rate of the add (advertisement) of 7 second is
approximately 45000.
But in fixed time (prime time, or specific time) its rate is extra 200%.
But in news time it is 400% extra.
The rate of PTV World is comparatively less then PTV.
25
Procedure for Selection of Advertisement Agency:
Procedures for selection of advertisement NSC do competition call.
Than distribute the schemes to those agencies for preparing campaign.
Then NSC has to select campaigns keeping in view various aspects.
Short listing.
Selection of advertising agency.
Board of selecting agency.
Fixing of date of final selection should call at least 10 agencies, than these campaigns will be
exhibited, then director of each agency will explain its campaign for removing fraud, the title of
the agency will be hidden on campaign.

More than are agency can be selected.

Transfer or sending to press paper.

Minister (issue of appointment letter).

APNS

Budget verification (advertisement, printing charges, local publicity, press & media).

Final approval from competent authority.

Selection of newspaper. (Considering holidays).

Issue of release order will send to press information department.

Instructions, about the size of the add, wording page is also given.

PID (press information department) will give a copy of its approval to NSC and
other.
PROCEDURE OF FOREIGN MEDIA:

External publicity wing, we send our requirements, add, page. Size, color, length,
impotence to external publicity wing (EPW).

EPW observe and decide that either add should or not be placed in our media.

(EPW) also check that weather we have NOC or not or weather we have bill or approval
for pointing.
5
SCHEME SECTION
National savings offers eight types of
schemes.
1. Defence saving certificates.
2. Regular income certificate
3. Special saving certificates /accounts.
4. Savings Accounts.
5. Prize Bonds.
6. Bahbood Savings Certificates.
7. Pensioners Benefit Accounts.
8. Special Savings Accounts.

The function of this department is to examine and audit the reports of the all stated
schemes.

It compiles the report of each scheme of every branch of the city.
26
1: Daily
2: Monthly
3: Annually

Calculate and evaluate the incoming and outgoing cash of every scheme of every
branch of the city.
The separate independent department of NATIONAL SAVINGS.
Regional Accounts Office
Regional Accounts Office
As the District accounts office of any district is performing its job for the passing of the bills of the
Govt. offices, as like this the Ministry of Finance has decided to situate Accounts Offices in the
National Savings for the convenient of the employees of this organization. So every bill or Cheque
of this organization is send to Regional Accounts Office for Pre-audit. Drawing & Disbursement
section send all types of bills as like employees pay, House Rent allowance, Medical allowance for
pre-audit and clearance. So in short this office is performing the following functions. After
departmentalization of accounts the claims of pay/allowance, payments of contingencies etc, are
being honored/processed by Regional Accounts Offices attached with each Regional Directorate of
National Savings in the manner:
Main functions of RAO
RAO’s established in 1978.and above separately submitted …RAO is just like cash.
1. All monthly expenditure statement is prepared by RAO.
2. All claims presented by Rdns (DDO) traveling allowance, contingencies.
3. All reconciliation with National Savings treasury.
4. Reimbursement of medical charges.
5. The RAO reconciles the amount authorized by him to be drawn from local National Savings
Treasury on monthly basis
6. The remittances into and withdrawal from Government Accounts are consolidation by the
National Savings Treasuries under the administrative control of each Directorate.
7. Every Treasury and every National Savings Center has to submit their accounts to the
respective Regional Directorate of National Savings where the same are consolidated and
Submitted to the respective regional accounts office, where the same are further consolidated
by inserting the figures of expenditure and then submitted to the Accounts General concerned.
8. All service record of officers is maintained at Regional Accounts office and provident fund
Accounts (except of Grade 1-2) are maintained and pension cases are processed by him in
respect of all officers and staff.
National Savings Centre In Bahawalpur Region.
Administration section.
NONE
Scheme section.
Mr. Iftakhar NAQVI
Treasury section.
Mrs. Ayesha Safdar
Drawing and Disbursement.
Mr. Muhammad Akram
Publicity and store section.
None
Regional Account Officer
Mr. Abdul Bari
27
Financial Intermediaries
Financial intermediaries play vital role in the economy. They fall into three categories
1: Depository Institutions
2: Contractual saving Institutions
3: Investment Intermediaries.
NSO fall into the third category of Investment Intermediaries.. Investment Intermediaries is further
divided into 3 types
1: Finance companies
2: Mutual funds
3: Money market mutual funds
NSO fall into (Money market mutual fund). These Investment intermediaries raise funds by
selling financial instruments to individuals. These institutions acquire funds by selling deposit type
accounts. The interest on these accounts is then paid to the account holders
External Analysis
The External Analysis examines opportunities and threats that exist in the environment. Both
opportunities and threats exist independently of the organization. The way to differentiate
between a strength or weakness from an opportunity or threat is to ask: Would this issue exist if
the company did not exist? If the answer is yes, it should be considered external to the firm.
Opportunities refer to favorable conditions in the environment that could produce rewards for the
organization if acted upon properly. That is, opportunities are situations that exist but must be
acted on if the firm is to benefit from them. Threats refer to conditions or barriers that may
prevent the firms from reaching its objectives.
The following area analyses are used to look at all external factors effecting the organization:



 Customer analysis
Segments: There are two major segments of customers
1: Lenders(investors)
2: Borrowers(investors)
National savings is a NON Banking Bank and it don’t facilitate the both categories of the
customers its only concern lie in the Investors. Thus we will focus only on the investors.

These customers are divided into 4 major segments
1.
2.
3.
4.
Senior citizens
Retired Employees
Widows
Other Investors
All above mentioned segments of employees are focused by the NSO as well as by other
financial institutions.
Pensioners are supposed to hold large amount of money as compare to other investors and they
need a constant income for their future life thus all financial institutions try to attract, facilitate
and retain these potential customers.
The senior citizens and widows are also supposed to be back upped by constant and
reasonable amount of income thus they are also focused in the same manner as the pensioners.
All other potential investors who don’t lie in the above discussed categories are the ones who
want to deposit and grow their savings. They don’t need any constant income but, they expect
return on their investments. They constitute a large number of investors. In the future these
customers are supposed to convert in to the other 3 discussed categories.
Competitive analysis
Identification:
The competitors of NSO are all those financial institutions that offer the investment schemes to
the potential and current investors. These competitors include all the Banks in Pakistan. Money
markets (e.g. Stock exchange).
28
strategic groups
Image, objectives, Strategies, Culture, Cost structure, Strengths,
Weakness
There are basically three strategic groups that are effecting the potential investments of NSO.
They are



Stock exchanges
Money Changers
Banks
Performance Evaluation
1: Stock Exchanges In stock exchanges the investors lend money to the different corporations
and purchase the shares of the corporations. They earn profit in the form of 1: Dividends 2:
Increased Market value of shares. But risk factor is also involved in this type of investment. As
the market value of shares can be decreased due to certain reasons. And the company may or
may not declare the dividends. Thus investments in this sector are highly risky. In addition to all
these risks investors have to bear the service charges.
2: Money Changers: There is a group of investors who earns through the change in the
currency exchange rates. These investors on their personal judgment predict the increase or
decreased in the currency rates and invest to increase the amount of their investments. This type
of investment is also risky because the situation can be reversed due to certain uncertain
reasons.
3: Banks: These financial institutes offer the fixed return on the investments. The risk factor is
low because the original investments are secure and additional markup is paid on the original
invested amount. As compare to the above two financial strategic groups this group offers
relatively low amount of return. The banks cannot offer the return rates on their own will. The
rates offered by banks are regulated and fixed by the State Bank Of Pakistan.
Market Analysis
Important and potentially important markets:
NSO is operating only within the country premises; If it broadens its operations overseas it would
earn higher investments. So whole world is its potential market.
Cost Structure
What are the major cost and value-added components for various types of
competitors?
Competitors are regulated by State Bank Of Pakistan. Being a Govt. body it is supported by
highest interest rates. Still a large number of customers believe in the superior value added
services provided by competitors and they pay additional service charges for availing those
services. These additional service charges are earnings of the competitors. One of the most
important fact is that NSO don’t conduct service charges from its customers (e.g.: opening of
new accounts, issuing check books, transfer of accounts) this is all because to invite more
investments. But to provide these services in free NSO looses a large portion of its potential
income. In other words it is the opportunity cost of the operations.
Environmental Analysis
An environmental analysis is the four dimension of the External Analysis. The interest is in
environmental trends and events that have the potential to affect strategy. This analysis is
divided into five areas: economic, technological, political-legal, sociocultural, and future.
29
1
Economic
What economic trends might have an impact on business activity? (Interest rates,
inflation, unemployment levels, energy availability, disposable income, etc)
Analysis: The basic purpose of National Savings Organization is to motivate the Pakistanis
towards savings. The profit rates are affected bcoz of inflation. The interest rates decrease due to
inflation. When employment rate decreased interest rates are lowered to demotivate investments
in banks. Intern investments in other businesses increases which decrease the unemployment.
In recent years the interest rate is increased at a very less extent due to high inflation and
unemployment.
2
Technological
To what extent are existing technologies maturing?
Analysis:
Electronic Technologies:
The existing technologies used by the NSO include
Fax
Telephone
Computers
Printers
Infrared devices
Security Alarm systems
Among all above stated technologies Computers are currently (since 3 years) adopted. Well
trained employees deal with computers. System is transforming from manual to computers.
Different soft wares are been installed on hit and trial basis for experiment. A serious
consideration is given to convert whole system on computers. Other technologies are well
established and well adopted.
What technological developments or trends are affecting or could affect our industry?
ATM services adopted by competitors add an extraordinary utility for customers of savings
account. NSO lacks this facility and in spite of its highest offered rates it faces turnover of
customers (those customers who value ATM services).
In the same manner Cr cards are also one of those technological facility that is responsible for
turnover of customers.
3
Government
What changes in regulation are possible? What will their impact be on our industry?
Rules and regulations could be affected by incoming elections. The unstable political status plays
a vital role in inflation. This would affect interest rates inversely.
30
Are there political or government stability risks?
Yes definitely. There are 95% chances for elections. No one is sure about upcoming
Governmental body
4
Sociocultural
What are the current or emerging trends in lifestyle, fashions, and other components of
culture?
Life style is moving dynamically towards high technological adaptation. The one who adopt and
upgrade its operating structure according to it would survive and the one who lack this adoption
would definitely be a looser. demographic trends such as the market size of the population
(growth rate, income, population shifts) are increasing tremendously this is a positive sign for
potential investments and shows a great opportunity for the organization.
What are there implications?
NSO must adopt high technology in its operations like ATM, CR cards. It must broaden its
operations and a special training must be given to employees to facilitate, motivate and retain its
customers.
Internal Analysis
Understanding a business in depth is the goal of internal analysis. This analysis is based
resources and capabilities of the organization.
Resources
A good starting point to identify company resources is to look at tangible, intangible and human
resources. Tangible resources are the easiest to identify and evaluate: financial resources and
physical assets are identifies and valued in the firm's financial statements.
Intangible resources are largely invisible, but over time become more important to the firm than
tangible assets because they can be a main source for a competitive advantage. Such intangible
recourses include reputational assets (brands, image, etc.) and technological assets (proprietary
technology and know-how).
Human resources or human capital are the productive services human beings offer the firm in
terms of their skills, knowledge, reasoning, and decision-making abilities.
Tangible Resources
31
Findings:
1: Tangible Resources
National Savings is a government's institution and it don’t conclude its
financial statements by itself. It just maintain the General journals and
ledgers to maintain the Dr & Cr ratings. Balance sheet, income statement are
not provided to the functional units.
The financial resources of the organization could'nt be measured because
financial statements are not provided to non organizational members
(internies).
Intangible Resources
Technological Findings:
Simple manual data entry system exists currently. NSO has no technological
edge over its competitors. Although different efforts are been made to
transform the whole system on computer.
Reputation Findings:
1: Product Reputation
NSO is been working since 1873. Its current offered rates are higher than any
other's. It is highly recognized throughout Pakistan. One of its reorganization
is for the PENSIONERS BENEFITS ACCOUNT and BAHBOOD SAVINGS
CERTIFICATES. Not much people know its schemes of RIC, SA, SSC.
A very small number of people know that Prize bonds are NSO's financial
products. They thought it as a product of State Bank Of Pakistan.
32
Once a customer invests with NSO; he develops a comprehensive
understanding of its financial products and become its loyal customer.
Because of its customer oriented investments.
2: Customers Reputation
As compare to the other Financial Institutions (with low interest rates)
employees are not provided with the entertainment allowances. So they cant
entertain their customers. Most of potential customers rate this particular
behavior with other financial institutions and prefer their dealings.
Employees Reputation:
Employees are very much concerned with their duties. They don’t give any
particular attention for customer retention and customer loyalty. They show a
good behavior generally but, don’t bother to maintain an excellent
relationship with their customers.
Human Resource
Findings:
Education: Senior employees are not highly educated. The senior employees
are under Graduate. The currently employed employees are graduate and
Masters.
Professional Qualification and Training: The senior employees are well
learned about the professional handling of the official matters.
National savings uses two methods of training for its employees so that they can face the
challenges of modern techniques. These methods are:
(1) Initial training
(2) Routine training
(1) Initial Training
This method of training is used for those employees who are directly recruited in the officer of
national savings. So after selection, they are given training in the training center. National saving
has training institute in Islamabad and a sub-training institute in Karachi.
33
(2)Routine training
This type of training is given to employed workers. Who are already working in national saving.
National saving offers two kinds of this training:
Training in Pakistan includes the training through regular courses, refresher courses that are of
short term in nature in the training institute at Islamabad.
The directorate of national savings also arranges training in aboard. It keeps membership of
international savings operation of ISBI
in Geneva.
Capabilities
Resources are not productive on their own. The most productive tasks require that resources
collaborate closely together within teams. The term organizational capabilities is used to refer to
a firm's capacity for undertaking a particular productive activity. Our interest is not in capabilities
per se, but in capabilities relative to other firms. To identify the firm's capabilities we will use the
functional classification approach. A functional classification identifies organizational capabilities
in relation to each of the principal functional areas.
Findings:
Strategic financial Control:
The financial strategic control is maintained by the State Bank of Pakistan Through FISCAL
POLICY AND Monitoring Policy. The profit rates are proficiently controlled and regulated by State
Bank Of Pakistan.
Financial Management:
Inter Organizational financial management is controlled through Regional Accounts Office. the
claims of pay/allowance, payments of contingencies etc, are being honored/processed by
Regional Accounts Offices attached with each Regional Directorate of National Savings.
Effectiveness in Motivating and Coordinating Business Units:
The city centers are operated and coordinated by their respective Regional Directorates. Each
regional directorate is controlled and coordinated by its respective zonal Directorate. All zonal
directorates are managed and commanded by Central Directorate.
34
SOWT ANALYSIS
Internship in a National Savings in quite different experience from my expectations. It is very
difficult to analyze the performance or structure of National Savings or nay organization while
worked in its small unit. Another problem is that information are not available, I can’t get the
annual reports.
In these circumstances it is very difficult to analyze but, I tried my best.
STRENGTHS
 Security of Security of Investments
National Savings organization is the Govt. owned organization that is why the Pakistan
public trusts his organization and its schemes are secured. Due to this the deposits of
the organization are in creasing day by day.
 Excellent Intra Organizational Employees relation
The staff members are well equipped with the tool of personal relations
 Experienced And Energetic Employees
Majority of the staff is experienced and energetic.
 Vast Network of Centers
National Saving organization has the large network of centers.
 Schemes for All Income Levels
National saving organization has so many schemes for the lower middle and higher
Level income people of Pakistan.
 Highest Profits
National Saving organization has paying more profit for different schemes as compare
to its competitors.
 Favorable Working Environment
The working environments of the branches are favorable for the working of staff.
 Friendly Attitude
Generally the attitude of the employees is very good with the customers and with each
other.
WEAKNESSES

lack new and modern technology
The National Saving organization lack new and modern technology.
The transactions in the regional offices as well as the branches are not computerized.
 Slow Development
The organization is in high profits but it’s working in the manual form. Well the
organization has admitted the need in this regard and has been developing computer
department for this purpose.
 Poor Marketing
There is no specific marketing department to develop general awareness about the
schemes of organization. People invest in the other higher risked and low profitable
schemes of other banks.
If they are provided with proper guidance and awareness about the schemes of this
Organization this organization would earn the highest investments.
 Unavailability of Financial Reports
Financial Reports and magazines are not published for public and therefore its financial
35
analysis is not possible.
OPPORTUNITIES

Enhancement of NSC's In other countries
There is need of rapid enhancement of NSC's branches especially in foreign countries.
National saving centers do not exist out side the Country. So they are loosing market
which will be effective source of revenue for government of Pakistan.

Develop Efficient Computerized system
The National Saving organization has the opportunity to computerize its branches and
Regional offices. Thus all dealing of record would be more secure & efficient

Create more customers and Employment
Though National Savings organization has a vast network of branches all over the
Pakistan but, Still there are a large number of cities that lack NSC's. Thus National
Savings has an opportunity to introduce new and modern layout of branches and regional
offices to attract the employees and

Develop customers delight through ATM
NSC should develop the ATM facility to enhance the customer's delight and feasibility
THREATS

World Bank pressure for cutting interest rates.

Political changes and influences with the passage of time.

Low salary officers are a threat for the organization, as they don’t give proper
attention to their work.

Illiterate customers don’t know how to deal with their certificates and accounts. Due
to their unawareness they create great problems for org. and for themselves as well.

Number of banks has enormously increased if proper attention would not be given the
National savings would loose its unawared potential customers
36
SUGESTIONS AND RECOMMENDATIONS
Branch Environment
In case of financial institution the branch environment plays a vital role. National savings center
requires a lot of improvement in this respect. General cleanliness conditions are very bad. So
there is need to take immediate action for the improvement of branch environment.
Implementation of technology
Now a day every organization has the opportunity to implement development in technology. So
That to provide high quality products. It is a computer age. As all other financial institutions are
computerized National savings centers must fill up this flaw.
Training of the personnel
Employees are most important asset of an organization.
They must be provided with proper
training to meet the changing needs of Business. National savings organization does not have
such culture. An advertisement campaign must be run to educate the current and potential
customers about the rates of its products and handling of accounts certificates
Establishment in other countries
There is need of rapid enhancement of NSCs branches especially in foreign countries. National
saving centers do not exist out side the Country. So they are loosing market which will be
effective source of revenue for government of Pakistan.
Promotion of Schemes
National saving centre is working in high competitive environment. So promotion of schemes can
be a very important strategy to take competitive advantage. So a full fledged promotional
program .should be launched to create awareness about the schemes of national savings
organization.
37
REFERENCES:
o
www.savings.org.pk
o
www.nationalsavings.org.pk
o
www.mystrategicplan.com
o
Anwer Bhatti ( September 13, 2007) Assistant Director, Regional Office NSO,
Bahawalpur
o
Tariq Mahmood (August'2007) Branch Manager, National Saving Center II Bahawalpur
o
Ghulam Murtaza Syal (August '2007) Cashier , National Savings Center II Bahawalpur
o
o
o
o
Rana Sb (August '2007) Operational Manager, National Savings Center II Bahawalpur
Usman Sb (August '2007) Account Officer, National Savings Center II Bahawalpur
Noreen (August '2007) Account Officer, National Savings Center II Bahawalpur
Fredric S. Mishkin (2006) Financial Markets + institutions 5th edition
38
APPENDIXES
A: Detail of different centers of BWP region
B: Restricted Account of NSO (Mahana Amdani Account)
39
Appendices:
Details of Different Centers of Bahawalpur Region:
Total centers =20
Nsc 1
Nsc 2
Nsc 3
Nsc 4
Nsc 5
Nsc 6
Nsc 7
Nsc 8
Nsc 9
Nsc 10
Nsc 11
Nsc 12
Nsc 13
Nsc 14
Nsc 15
Nsc 16
Nsc 17
Nsc 18
Nsc 19
Nsc 20
D I G chock Bahawalpur
welcome gate railway road Bahawalpur
model town Bahawalpur
Commercial Area Bahawalpur
Ahmed-pur(east)
liquat pur.
khanpur
Rhaimyar-khan
Sadiqabad.
Yazman.
lodhran
kahroadpaka
Malsee
kharpur tamawali
Hasil pur
Chishtian
Bahawalnagar
Minchanabad
Haroonabad
Fortabas
Restricted Scheme Of NSc
Mahana Amdani Account:
This Scheme is entertaining the existing account holders but is not opening new accounts.
Monthly deposits from Rs. 500, to Rs. 5000, in this account for continuous 84 months entitle the
investor to receive an amount which is equal to his monthly deposit every month , after the
completion of 84 months, until the account is closed.
A missing installment can be deposited within 6 months of the month to which the installment
relates with a surcharge at the rate of two rupees per hundred per month.
Only one account may be opened in the name of any one person either singly or jointly with
another person. Every Rs.100 becomes
Profit/return not exceeding Rs.1000 is exempt from deduction of tax at source.
(2) Period of receiving deposits
Monthly deposit in an account under these rules shall beas under:
(a) on the accounts opened before 01-07-2000. (For period of five years).
(b) on the accounts opened on or after 01-07-2000. (For a period of 6 years.
(3) Operation account
The account may be opened only in the National Savings Center.
Eligibility.
The account may be opened by
40
(i)
a single adult ; or
(ii)
two adults in their joint name,--(a) Payable to the holders jointly or to either of them with the consent of the
other, or
(b) Payable to either;
(III)
father or mother or legal guardian on behalf of a minor or minors.
One account only,-Only one account may be opened in the name of one person either singly or jointly with another
person. Father or mother or legal guardian may, however, open an additional account on behalf
of a minor.
Deposit in multiple--1. The account may be opened with a minimum monthly installment of five hundred rupees.
2. The amount of monthly installment may be increased in multiples of one hundred rupees,
but the installment less than last installment shall not be placed.
3. The monthly installment shall not exceed five thousand rupees whether held by one person
or by two person jointly. And for the purpose of calculating the individual installments
when two persons are joint account holders, one half of the joint installment shall be assumed
to belong to each.
4. An account holder hall, under no circumstances, exceed the monthly maximum permissible
limit of instalment
Monthly installment:1. Only one installment may be received in an account for a month.
2. Any installment received in the first fortnight of the month may be reckoned to have been
received on the 1st month and an installment received in he second fortnight of the month may
be reckoned to have been received on the 16th of the month.
(3). advance installments for any period may also be received provided the is talment for each
month does not exceed five thousand rupees:Provided that such deposit shall be reckoned to
have been received on the Its of the month to which it rates
(4) Month to which the instalment related with a surcharge at the rate of two rupees per hundred
per month, and such deposit shall be reckoned to have been made on the 16 the of the month to
which the instalment related
(5) The profit earned under these rules shall be subject to tax as per rules.
(6)Closure of Account,(1) The account shall be considered as closed if .
(i)
withdrawal from the account is made within a period of
six years; or
(ii)
monthly instalments are not deposited consecutively for
six months ;or
(iii)
all the deposits are withdraw after 6 years of the
41
opening of an account, but the withdrawal of one or
more deposits shall not close the account.
(2) Omitted.
(11) Automatic re-investment—
1. The monthly instalment in an account on completion of each 6 years shall be deemed to have
been re-invest for another period of 6 years.
2. Disbursement of profit as monthly income shall commence on the completion of 6 years of
each deposit and shall continue so long as account is not closed.
(12) How to open an account.:
1. Any person wishing to open an account should apply to any National Savings Center, here in
after to as the Center, in the Application form.
2. Application need not necessarily be made in person, but the applicant sign the application and
stat his or her name, father’s or husband’s name, complete address and occupation.
3.The applicant shall also affix his or her signature on the specimensignature card.
4. If the account is desired to be opened through a bank, the Bank Manager would attest the
signature of the depositor, or his or her Thumb-impression of the depositor is unable to write, or
if the Accounts desire to be opened through an agent shall attest the Signature or thumbimpression of the applicant before the Center-in-Charge where the account is desired to be
opened.