The Citizen Investment Trust (CIT) is bracing for a substantial decline in its revenue stream as massive reserves remain stagnant in low-yielding fixed deposits and institutional friction with the Social Security Fund (SSF) threatens its member base.
Speaking at the institution's 36th-anniversary celebration, CIT Executive Director Parbat Bahadur Karki highlighted a growing financial dilemma. A significant portion of the trust's capital is currently sitting idle due to a sharp drop in deposit demand from banks and financial institutions, coupled with plunging interest rates on fixed accounts.
According to Karki, efforts to diversify the trust's portfolio are hitting a wall. He attributed the sluggish demand for credit to a deteriorating investment climate and weakened investor confidence, making it increasingly difficult for the CIT to deploy its funds effectively into the market.
Compounding this financial strain is an emerging jurisdictional clash. Karki noted a visible overlap in the mandates of the CIT and the SSF. He expressed concern over the SSF's aggressive expansion tactics, revealing that the SSF has been sending warning letters to CIT-affiliated organizations, mandating them to switch their affiliation or face penalties.
Facing the dual pressure of managing uninvested capital and retaining its contributors, the CIT finds itself at a critical juncture. Moving forward, the institution's financial stability and operational independence will heavily depend on achieving definitive policy clarity and streamlined implementation from regulatory authorities to resolve these structural overlaps.
