The federal cabinet has ratified Sarwa Islamic Savings Accounts Rules, 2019 prepared by Central Directorate of National Savings (CDNS due to persistent demand of Sharia compliant product, official sources told Business Recorder.
The source said that the Central Directorate of National Savings (CDNS) is an attached department of the Finance Division, which plays an important role in the mobilization of domestic savings, support, and management of inflationary pressures. These schemes also provide necessary social protection to the poor and vulnerable segments of society through higher interest rates against investment.
The portfolio of NSSs reached Rs 4.001 trillion as of April 2019 with investors’ base of over seven million.
It was also revealed that CDNS is currently managing 10 different National Saving Schemes (NSSs). These products range from three months to 10 years tenure and cater to the secure investment needs of small savers, youth, senior citizens, pensioners, widows and employees funds.
Despite the vast range of existing products need of more specialized schemes have always been felt by different segments of society. One of the most demanded products in this regard is a Sharia-compliant product. Accordingly, after extensive exercise, CDNS has framed a draft “Sarwa Islamic Savings Accounts Rules”.
It was further apprised that after vetting from Law and Justice Division draft “Sarwa Islamic Savings Accounts Rules, 2018″ were published with SRO 302(1)/2018 on March 2, 2018 for soliciting objections or suggestions thereon; if no objection or suggestion was received within stipulated period, hence final notification is to be issued in terms of section 28 of the Public Debt Act, 1944(XVIII of 1944) of 1944) with the approval of the Federal Cabinet being the Federal Government. The meeting was briefed that the notification containing Sarwa Islamic Savings Accounts Rules, 2018 has been vetted by the Law and Justice Division.
Finance Division proposed that the notification containing “Sarwa Islamic Savings Accounts, 2019″ be placed before the CCLC before it is submitted to Federal Cabinet.
The Cabinet in its meeting held on October 14, 2019, approved the Sarwa Islamic Savings Accounts Rules, 2019.