Karachi, July 2, 2025 – The Central Directorate of National Savings (CDNS) has announced a sharp reduction in profit rates across a wide range of saving schemes.
The move follows the State Bank of Pakistan’s aggressive monetary easing during the fiscal year 2024-25, which brought down the benchmark interest rate substantially.
According to a report by Topline Securities Limited, the latest revision by CDNS includes cuts of up to 59 basis points (bps) on several popular saving instruments. These new rates took effect from June 27, 2025.
Among the key changes, the profit rate on the Special Saving Certificate has been reduced by 30bps to 10.60%, down from 10.90%. Similarly, the Defence Saving Certificate now offers 11.76%, a drop of 15bps from the previous 11.91%. The Regular Income Certificate has seen a 36bps reduction, bringing the rate down to 11.16%.
Other notable adjustments include a 24bps cut in profit rates for the Pensioners Benefit Account, Behbood Saving Certificate, and Shuhda Family Welfare Account, all now offering 13.20%. Meanwhile, Sarwa Islamic Term Account and Sarwa Islamic Saving Account saw the steepest drop—59bps—bringing their profit rate down to 9.75%.
Interestingly, the Saving Account rate has remained unchanged at 9.50%, offering a consistent return amid widespread reductions.
Financial experts have raised concerns that the significant reduction in profit rates could discourage small investors, retirees, and families who rely heavily on CDNS schemes for a stable return. With government debt instruments becoming less attractive, some analysts warn this may impact the flow of domestic funds toward public borrowing.
The CDNS plays a pivotal role in mobilizing national saving and arranging non-bank financing for the government. By offering structured saving schemes, CDNS helps bridge fiscal gaps. However, with lower returns, the agency may face challenges in attracting fresh investment.
Investors are advised to reassess their portfolios and consider diversified saving strategies in light of the revised CDNS rates.