KARACHI: The government has slashed profit rates on most National Savings Schemes by 15 to 59 basis points, effective June 27, 2025, according to data released by National Savings and cited by Topline Securities.
The sharpest cuts were applied to Islamic products, with both the Sarwa Islamic Term Account and Sarwa Islamic Saving Account reduced by 59 basis points to 9.75%, down from 10.34%.
Profit rates on Regular Income Certificates fell by 36bps to 11.16%, while Special Savings Certificates dropped by 30bps — from 10.90% to 10.60%.
Defence Saving Certificates saw a modest cut of 15bps, with the rate reduced from 11.91% to 11.76%.
Among senior citizen-focused products, the Pensioners Benefit Account and Behbood Saving Certificate were each reduced by 24bps to 13.2%. The same 24bps reduction was applied to the Shuhada Family Welfare Account, bringing its rate to 13.2%.
Meanwhile, the standard Savings Account Rate remained unchanged at 9.5%.
These changes in profit returns come after the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) decision to keep the policy rate unchanged at 11% last month.
The move was in line with market expectations given the uncertainty surrounding Israel’s military strikes on Iran and their effects on international commodity markets.
A Bloomberg report added that a majority of the 40 analysts surveyed by Bloomberg had predicted the move. Several economists had revised their forecasts to a hold from a cut in the days leading up to the rate decision.
The shift in sentiment was driven by escalating tensions between Israel and Iran, which have raised fears of a broader conflict in the energy-rich region.
56% of market participants in the Topline Securities poll forecast the SBP would hold its policy rate steady at 11%.
The same report expects interest rates to fall to and bottom out at 10% by the end of December this year.
In March, the central bank temporarily halted its easing cycle after lowering rates by 10 percentage points from a record high of 22% in June 2024. Furthermore, it delivered another 100-basis points cut in May, which reduced the key interest rate to 11%.
The Central Directorate of National Savings (CDNS) is Pakistan’s largest financial institution, managing assets exceeding Rs3.4 trillion and serving over four million customers through a nationwide network of 376 branches across the country, administered by 12 Regional Directorates.
It plays a vital role in helping the government finance its budgetary deficits and support key infrastructure projects.
