National Savings puts 111 centres under review over high operating costs
National Savings puts 111 centres under review over high operating costs
National Savings centres are under a cost review after the organisation identified 111 of them as financially inefficient and potentially unsustainable, ordering regional offices to draw up plans to cut operating costs or lift deposits and business activity. Centres that fail to improve could be shut down or merged with nearby branches.
The directive sets a clear benchmark. Each centre must bring its operational cost down to Rs2,500 for every Rs1 million in deposits it holds. Branches that cannot meet the mark face closure or consolidation.
Which National Savings centres are under review
Regional directorates have been given 15 days to submit business improvement or relocation plans. Where moving a centre looks viable, National Savings may shift it from an area with limited business activity to a location with stronger investment potential.
The review spans centres across Peshawar, Abbottabad, Islamabad, Gujranwala, Lahore, Faisalabad, Multan, Bahawalpur, Sukkur, Hyderabad, Karachi and Quetta, covering all four provinces.
If a centre is closed, the regional office concerned must also submit details of its employees, including where they live and where they would prefer to be posted next. The exercise is aimed at lowering operating expenses and putting the network on a financially sustainable footing.
Why the National Savings centres review matters
National Savings, run by the Central Directorate of National Savings under the Finance Division, is the government’s retail savings arm. Its schemes are a lifeline for pensioners, widows, senior citizens and small savers who rely on the monthly profit payouts.
The cost review comes at a sensitive time. From October 1, the government raised profit rates on key National Savings certificates, increasing the return paid out to depositors. Higher payouts make it harder for the organisation to absorb bloated running costs, which is likely behind the push to trim the branch network.
The move also fits a wider pattern of fiscal tightening. With the government under pressure to control spending, state-run bodies are being told to justify every rupee of their operating budgets.
What happens next
The 15-day deadline means regional offices must submit their plans by mid-October. Closures and mergers would follow after the proposals are assessed. For the millions of account holders who use these centres, the practical question is whether their nearest branch survives the cut or gets folded into another one nearby.
Why is National Savings reviewing 111 centres?
The centres were found financially inefficient, with operating costs too high relative to the deposits they mobilise. The review aims to cut expenses and improve the network’s sustainability.
What is the cost benchmark for the centres?
National Savings has set a benchmark of Rs2,500 in operational cost for every Rs1 million in deposits. Centres above that line must improve or face closure or merger.
Will the centres be closed?
Possibly. Centres that fail to improve their financial performance could be closed or merged with nearby centres, and some may be relocated to areas with better business prospects.
What happens to employees of closed centres?
Regional offices must provide details of affected employees, including their residential locations and preferred locations for future postings, so staff can be reassigned.
