The net sales of savings instruments declined by over Tk88.91 billion year-on-year in the first eight months of the current fiscal year, indicating a preference for higher-paying encashment over investment. This negative growth trend continued to expand in February 2024, suggesting a lack of confidence in these government borrowing tools. Mounting inflationary pressure, financial crisis, reduced bank profitability, and challenging investment conditions contributed to this decline. The total outstanding amount exceeded Tk3.58 trillion from July to February in FY24, with 11 government-owned savings tools available in the market. Despite efforts to incentivize savings through higher yields, individuals are deterred by erosion of purchasing power, high inflation rates, and economic uncertainty, leading to a trend of dis-saving.
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