Islamabad, November 7, 2024 – The Central Directorate of National Savings (CDNS) has implemented a downward revision of profit rates on various National Savings Certificates, effective November 4, 2024, marking a strategic shift in its financial offerings.
The revised rates impact multiple savings instruments, reflecting an effort to align with current economic conditions while still encouraging national savings.
Profit rates for the Special Savings Certificates (SSC) have been reduced by 12.26%, while Defense Savings Certificates saw a cut of 12.12%, according to a senior CDNS official who spoke to APP on Thursday.
Additional reductions include a 13.92% rate adjustment for Bahbood Savings Certificates (BSC) and Shuhadas Family Welfare Account (SFWA), alongside an 11.77% reduction for the Special Savings Account.
Despite these rate cuts, CDNS has made significant progress toward its fiscal targets. For the first quarter of the fiscal year 2024-25, from July 1 to October 6, CDNS has already amassed Rs 210 billion in new bonds, meeting 11% of its ambitious annual target of Rs 1.65 trillion. This target is designed to bolster a savings culture in Pakistan amid economic challenges and currency fluctuations.
To further enhance its financial diversification, CDNS has also set a separate annual target of Rs 170 billion for Islamic finance instruments. This objective is intended to foster growth in the Islamic economy by promoting Sharia-compliant savings options for investors, thus expanding CDNS’s footprint in this sector.
Reflecting on past performance, the senior official noted that CDNS exceeded its target in the previous fiscal year, achieving Rs 1.742 trillion in fresh bond issuances, thereby surpassing its goal by over 100%. This impressive performance followed a similar outperformance in fiscal year 2022-23, when CDNS secured Rs 1.6 trillion in bonds, overshooting the previous year’s target of Rs 1.3 trillion by Rs 200 billion.
In recent years, CDNS has been committed to reform and modernization, introducing new measures to improve accessibility and efficiency for its investors. The rollout of Automated Teller Machines (ATMs) within the CDNS network is one such enhancement, allowing savers greater ease in accessing and managing their funds.
Looking ahead, CDNS remains resolute in its mission to promote a strong savings culture across Pakistan. As part of its long-term strategic vision, CDNS continues to refine its products and targets, aiming to balance profitability for savers with the broader economic goals of financial stability and growth. These adjustments not only reflect the current economic landscape but also CDNS’s adaptive approach to meeting the evolving needs of Pakistani savers and investors.
