The Federal government of Pakistan has recently announced National Saving Bonds Rules 2009 for the issue of national saving bonds (NSB).

Further, a notice forwarded to KSE stated that the bonds will have three maturity periods of three, five and ten years.

Moreover, the benefits on these bonds will be paid bi-annually and the bonds would not be cashable before maturity. Meanwhile, the maturity wise coupon rate will be declared by the Finance Division before the 15 days of each issue.

Central Directorate of National Savings will issue these bonds, to be listed and traded on country’s bourses and transferable during Central Depository System.

Further, these bonds can be issued to individuals, mutual funds, provident fund, pension, gratuity funds or trusts, excluding corporate body, banks.

These bonds can be pledged as security in Pakistan.

The profit made from these bonds will be accountable to tax under Income Tax Ordinance and withholding tax on these bonds will be reduced at the prevailing applicable rate at source.