Karachi, May 21, 2025 – In a significant move impacting millions of small investors, Pakistan has sharply reduced the profit rates on various national saving instruments, bringing most returns down to single digits.
The decision reflects the broader monetary easing initiated by the State Bank of Pakistan (SBP) earlier this month.
According to an update issued by Topline Securities Limited, the Central Directorate of National Savings (CDNS) has officially revised saving scheme rates downward. The most notable adjustment is in the Saving Account, where the profit rate has been slashed by 100 basis points, bringing it down to just 9.50%, compared to the previous 10.50%.
This development comes on the heels of the SBP’s latest monetary policy decision on May 5, 2025, where the central bank cut the benchmark interest rate by 100 basis points, reducing it to 11% from its record high of 22% observed in June 2024. The rate cut, aimed at stimulating economic growth amid easing inflation, has now directly influenced the return structure of the government’s saving schemes.
Almost all national saving instruments have undergone similar reductions. The profit rate for the Special Saving Certificate has been trimmed by 30 basis points to 10.90%, down from 11.20%. The Defence Saving Certificate has seen a cut of 21 basis points, reducing returns to 11.91% from 12.12%.
Regular Income Certificates haven’t been spared either, with profit rates dropping by 18 basis points to 11.52%. Meanwhile, saving options tailored for older citizens and families of martyrs — such as the Pensioners Benefit Account, Behbood Saving Certificate, and Shuhda Family Welfare Account — have seen returns decline to 13.44%, down from 13.68%.
The Sarwa Islamic Term Account and Sarwa Islamic Saving Account also saw minor reductions of 10 basis points each, settling at 10.34%.
This downward revision in profit rates may prompt many investors to reevaluate their portfolios, particularly those reliant on fixed-income instruments for consistent returns. Financial experts suggest savers may now seek alternative investment avenues as the real rate of return diminishes amid ongoing rate adjustments.