President Dr Arif Alvi said the government should fulfill its commitment to helping the people seek monetary benefits. In response to a citizen's appeal against a Wafaqi Mohtasib judgement, the president ordered the Central Directorate of National Savings (CDNS) to pay her profit on Special Saving Certificates (SSCs) at the profit rate in effect at the time the certificates were purchased. According to President Alvi, the CDNS broke the law by retroactively changing the profit rates, which resulted in the citizen losing Rs5.3 million.

The president gave these instructions in the case of Yasmeen Merchant, who had bought six SSCs from CDNS on November 1, 2019, with a profit rate of 12.7 percent for the first five certificates and 13.9 percent for the last. Four days later on Nov 5, Finance Division issued a notification that the profit rates were reduced from 12.7pc to 11pc and 13.9pc to 11.8pc with retrospective effect from Nov 1, causing her a loss of Rs 5.3 million, said a press release. The president accepted her representation and held that the complainant was entitled to the profit rate in effect on the date of certificate issuance and that the change made through the notification did not apply to her investment in retrospect and, thus, could not affect her duly earned right to profit or nullify it to her disadvantage. He stated that the announcement was in the character of subordinate or delegated law and that it became effective on the date it was published in the official gazette, not any preceding date.

The president held that it was not only logical, fair and just to fulfill promises, undertakings and agreements but was also a universally accepted norm. He further declared that both sides were bound by the commitments made at the time of issuance of certificates and directed CDNS to pay the profit as per the promised profit rates. The citizen’s grievance was that she had purchased the SSCs because of the prevailing profit rate whereas the notification gave retrospective effect to the profit rates and was issued after investment to her disadvantage. She approached CDNS and later the Wafaqi Mohtasib for redress of her grievance but to no avail. She then filed a representation with the president, which was accepted.

Credit: Independent News Pakistan-WealthPk