National Savings plans closure of 111 centres
Branch network to be reduced from 374 to 263 as govt seeks to cut operating costs
The federal government has announced plans to close or merge 111 National Savings centres, citing inefficiency and financial unsustainability as the primary reasons. This decision forms part of an initiative to streamline the organisation's branch network, which currently sees 374 centres operating, down from a previous total of 375.
Under the new rules, the number of National Savings centres will be reduced from 374 to 263. Each centre must meet a performance benchmark, with an operational expenditure limit set at Rs2,500 for every Rs1 million in deposits. The government has directed the 111 struggling centres to develop practical plans to either cut costs or boost business and deposits, aiming to improve their financial viability.
Alternatively, relocation to areas with higher business potential is also being considered, with regional directorates submitting relocation plans within 15 days. In the event of closure, all employees and their preferred alternative posting locations must be disclosed to the Central Directorate of National Savings. The Central Directorate serves as a state-owned savings bank, operating as an attached department under the Ministry of Finance's Finance Division, led by a director general.
The National Savings system functions as an intermediary, collecting savings from individuals to finance the government's fiscal deficit through non-bank channels.
Written by urgent.news from The Express Tribune - Pakistan's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
