Govt cuts profit rates on savings schemes

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ISLAMABAD: The government on Wednesday reduced profit rates on all national savings schemes — except the regular savings account — including Sharia-compliant instruments, in line with a broa­der easing of interest rates.

The savings account remains the only instrument with an unchanged profit rate of 9.5pc.

The revised rates follow a decline in cut-off yields on government papers (such as T-bills) and a reduction in the central bank’s policy rate to 11pc from its peak of 22pc. However, the Central Directorate of National Savings did not officially publish or announce the new rates, as is often the case. Instead, notifications were quietly circulated through internal channels and agents — sometimes weeks later via post.

The return on Special Savings Certificates and accounts has been reduced by 30 basis points to 10.6pc. The profit on Defence Savings Certifi­cates — a long-term investment scheme — has been cut by 15bps to 11.76pc.

Returns on Regular Income Certificates have been slashed by 36bps to 11.16pc from 11.52pc. Profit rates on Pensioners Benefit Account, Behbood Savings Certificates, and Shuhada Family Welfare Account have been cut by 24bps each to 13.2pc.

The steepest reduction has come in the Sharia-compliant instruments. The Sarwa Islamic Term Account (SITA) and Sarwa Islamic Saving Account (SISA) have seen a cut of 59bps, bringing their return down to 9.75pc from 10.34pc.

The revised profit rates were effective from June 27.

Published in Dawn, July 3rd, 2025

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