KARACHI: The Central Directorate of National Savings (CDNS) has slashed the profit rates of its various savings schemes by up to 100 basis points following a cut in policy rate by the State Bank of Pakistan earlier this month.
The basic savings account saw highest cut of 100 bps with new profit rate settling at 9.5 percent as compared to previous 10.5pc.
The profit rate for the Special Saving Certificate was decreased by 30 bps to 10.9pc, while the Defence Savings Certificate saw a decline of 21 bps, taking the profit rate to 11.91pc.
Similarly, the Regular Income Certificates recorded a reduction of 18bps, bringing the return to 11.52pc while the Behbood Savings Certificates saw a dip of 24bps to 13.44%.
The profit rate of Pensioners Benefit Account was trimmed by 24bps to 13.44pc while the Shuhada Family Welfare Account now yields 13.44pc after a cut of 24pc.
CDNS has reduced the profit rates for the Sarwa Islamic Term Account and Sarwa Islamic Saving Account by 10 basis points to 10.34pc.
SBP slashes policy rate by 100bps to 11pc
The development comes a couple of weeks after the central bank cut the policy rate by 100 basis points (bps), bringing it down to 11 percent.
In a statement, the State Bank of Pakistan (SBP) announced that the Monetary Policy Committee (MPC) decided to reduce the interest rate, citing the lower-than-anticipated April inflation — largely the result of falling prices in perishable foods and energy.
April recorded a modest inflation rate of just 0.3%, mainly due to the high comparison base from the previous year.
This decline was driven by reduced prices of essential food items like wheat, onions, potatoes, and some pulses, along with lower electricity and fuel costs.
Since these goods hold considerable weight in the Consumer Price Index (CPI), even slight changes in their prices can significantly impact overall inflation.
