Pakistan’s National Savings has identified 111 centres as financially unsustainable, with authorities considering measures including cost reductions, relocation, merger or closure.
Reportedly, the affected centres have been directed to prepare plans to reduce their operating expenses or increase deposits and business activity.
National Savings has set an operational cost benchmark of Rs2,500 for every Rs1 million in deposits held by a Centre. Centres operating above the required level will need to improve their financial performance.
However, the 111 centres have not all been ordered to close.
Centres could be relocated, merged or closed
National Savings has given the affected centres different options to improve their performance.
They can work to get more customers and deposits while reducing operating expenses. Authorities may also relocate some centres from areas with limited business activity to locations with greater investment and deposit potential.
Regional directorates have been given 15 days to submit business and relocation plans.
A centre which cannot become financially sustainable could be closed and merged with a nearby operational National Savings Centre.
The review includes centres across several regions, including Peshawar, Abbottabad, Islamabad, Gujranwala, Lahore, Faisalabad, Multan, Bahawalpur, Sukkur, Hyderabad, Karachi and Quetta.
The affected list includes centres such as Cantt-2 and City-1 in Peshawar, Ghazi and Mingora in the Abbottabad region, as well as centres in Quetta, Khuzdar, Turbat, Pishin and Gwadar.
Moreover, employees working at centres that could eventually be shut down. The relevant regional directorate will have to provide details about all employees working there. This information will include their place of residence and preferred location for future posting.
National Savings operates various government savings products for the public, including savings accounts and certificates. Its official website currently lists products such as Defence Savings Certificates, Regular Income Certificates, Special Savings Certificates, Pensioners Benefit Accounts and Behbood Savings Certificates.
Currently, 111 centres are under review and have been asked to improve performance. The closure of all 111 centres has not been announced.