KARACHI: The State Bank of Pakistan (SBP) has withdrawn the requirement for banks to offer guaranteed profit rates on savings accounts holding Rs10 million or more, a move that will directly affect large depositors while benefiting banks.
According to a circular issued by the central bank, savings accounts with balances below Rs10 million will continue to receive a minimum guaranteed profit rate. However, banks are no longer bound by any minimum profit requirement for accounts exceeding that threshold.
Alongside this change, the State Bank has allowed large investors to invest directly in Invest Pak Digital, bypassing commercial banks altogether. Through this facility, investors can channel their funds directly into government securities.
Experts said the decision will reduce costs for banks and improve their overall profitability.
They added that funds are likely to move out of savings accounts into the stock market and other investment avenues, while investors channeling money to the government through Invest Pak are expected to receive better returns.
