Islamabad, May 14, 2024 – The Central Directorate of National Savings (CDNS) has implemented adjustments to the interest rates on several significant savings schemes, with some witnessing reductions while others experience increases.
This alteration in rates comes in the wake of four previous revisions within the past five months, marking a period of dynamic adjustment in Pakistan’s financial landscape.
According to analysts at Topline Securities, the revisions by the CDNS entail a decrease in the rates of Special Savings Certificates (SSC) by 10 basis points to 15.70% from the previous 15.8%. Similarly, the return on Regular Income Certificates (RIC) has been adjusted downwards to 14.64% from 14.76%, reflecting a 12 basis points reduction.
Furthermore CDNS revealed that Bahbood Savings Certificates (BSC), Pensioners Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) have all witnessed a decline in rates to 15.36%, each representing a decrease of 24 basis points. Conversely, the rate of return on Defence Savings Certificate has been minimally lowered by 1 basis point, offering investors a 14.39% return.
In contrast, the rates on Short Term Savings Certificates (STSC) have seen an upward adjustment by 24 basis points, now standing at 19.24%. The Sarwa Islamic Term Account (SITA) has also undergone an increase, offering a rate of 19.1% after a rise of 56 basis points.
Meanwhile, the profit rates of the Saving Account and Sarwa Islamic Saving Account (SISA) remain unchanged at 20.5% for both, providing stability amidst the broader adjustments in rates.
These modifications came into effect as of May 14, 2024, impacting the investment landscape for individuals and institutions alike. Notably, this move by the CDNS follows a decision by the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) to maintain the key policy rate at 22% for the seventh consecutive time.
Despite the adjustments, Pakistan’s headline inflation registered at 17.3% on a year-on-year basis in April, according to data from the Pakistan Bureau of Statistics (PBS), marking a decrease from the previous month’s reading of 20.7%. This context highlights the complex interplay between monetary policy, inflation dynamics, and the investment environment within the country.