ISLAMABAD: The retired government employees invested a huge amount of Rs 41.15 billion in Pensioners Benefit Account (PBA) scheme launched by the government to promote national savings during last three years.
Only pensioners of the Federal Government, Provincial Governments, Government of Azad Jammu & Kashmir, Armed Forces, and Semi Government and Autonomous bodies are eligible to invest in the PBA.
The current rate of profit on investment in PBA is 14.04% per annum,” a well-placed source at the Finance Ministry told this scribe here on Wednesday, saying that keeping in view the hardships faced by the pensioners, a 10-year maturity scheme was launched by the Government on January 19, 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,” the source observed sharing data of investment made by retired government employees in PBA during last three years, which indicated that ratio of investment by retired government employees in PBA had been increasing in last three years as Rs 34,367.10 million were invested in the fiscal year 2011-12 and this amount increased over Rs 2.5 million with total investment of Rs 36.8 billion in next fiscal year of 2012-13 and increase was about 7.1%.
Moreover, the source said that retired employees continued reposing confidence in the scheme in the next fiscal year, 2013-14 and invested over four million rupees more in this scheme as volume of investment was Rs 41,150.50 which was 11.8% more than the previous fiscal year.
“The government is paying higher rate of return to retired employees in addition to exemption of Withholding Tax and Zakat,” the source said, adding that any subsequent enhancement in rate of profit notified by the government would be applicable to existing account holders of PBA, whereas downward revision would apply to fresh investment only.
The source further said that rate of profit on fixed deposit certificates of the National Saving Scheme was different and it based on mode of investment i.e one year, three years and five years fixed deposit certificates of national savings schemes.
“Rate of profits on saving certificate is 9.55%, 11.90% and 12.30% per annum for short term saving certificates of one year, Special saving certificates of three years and regular income certificate of five year term of maturity” the source observed.
It is pertinent to note here that the minimum investment limit for PBA is Rs.10,000 whereas, the maximum limit is Rs.3,000,000 and if an investor has already opened an account, he is eligible to invest only two subsequent deposits in that account.
