KARACHI – The government of Pakistan has made significant adjustments to the profit rates on national savings schemes, raising returns on several investment certificates by up to 70 basis points while simultaneously reducing the savings account rate by 100 basis points.
These changes reflect broader financial policies aimed at optimizing investment incentives and managing liquidity in the economy.
According to media reports, the Central Directorate of National Savings (CDNS) implemented these modifications following the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) decision to maintain the policy rate at 12%. The revision in profit rates is expected to attract more investors while ensuring sustainable returns for existing account holders.
CDNS officials confirmed that the profit rates on the Short-Term Savings Certificate (STSC) have been increased by 15 basis points (bps), raising returns from 10.81% to 10.96%. The Defence Savings Certificate (DSC) now offers a profit rate of 12.15%, reflecting an increase of one basis point.
Further adjustments include a 10 bps increase in the Pensioners’ Benefit Account, Bahbood Savings Certificate, and Shuhada Family Welfare Account, pushing their profit rates to 13.68%. These schemes, which cater to old-age citizens and families of fallen service members, have historically provided stable returns, and the revised rates ensure continued financial support for beneficiaries.
The most notable adjustment has been in the Sarwa Islamic Term Account (SITA) and Sarwa Islamic Savings Account (SISA), where the profit rates have been increased by 70 basis points, from 9.74% to 10.44%. This change is expected to boost investment in Islamic financial instruments, offering competitive returns to investors.
However, in a contrasting move, the government has reduced the savings account profit rate by 100 basis points, lowering it from 11.5% to 10.5%. This decision aims to balance liquidity within the financial sector while ensuring that higher-yield investment options remain attractive to savers.
These revisions in profit rates highlight Pakistan’s strategic approach to regulating its financial landscape, ensuring alignment with broader economic policies while optimizing returns for both traditional and Islamic savings instruments.