ISLAMABAD: Pakistan’s savings mobilised through the National Saving Schemes continued to decline, dipping by one-third to only Rs68.2 billion in the first five months of the ongoing fiscal year as low interest rates and weakening rupee turn investors away to more lucrative avenues.

The Central Directorate of National Savings (CDNS), which works under the Ministry of Finance, is witnessing major withdrawals from almost all categories of its savings accounts, showed official data.

From July through November, net savings mobilised by the CDNS stood at a mere Rs68.2 billion. The amount is 32 per cent or Rs32.2 billion lower when compared with net savings mobilised during the same period of the previous fiscal year.

Gross sales of savings instruments stood at Rs518.8 billion during July-November but people withdrew Rs450.7 billion worth of their investments. Gross savings increased 45.6 per cent but withdrawals were higher by almost 77 per cent.

It is the third successive year when the CDNS is registering negative growth in net mobilisation of savings. In fiscal year 2014-15, net savings were recorded at Rs337 billion, while in 2015-16 the amount stood at Rs207.6 billion.

The reduction in mobilisation of savings will now increase the finance ministry’s dependence on banks and foreign borrowings in order to finance the budget deficit.

The PML-N government has failed to implement its election manifesto that promised to increase savings and investments.

Internews