Government Reduced Profit Rates on National Savings Schemes
The government of Pakistan has officially reduced the profit rates on various National Savings schemes, a decision that has come into effect from June 27, 2025.
According to the data released by Topline Securities and National Savings, the profit rates have been cut by 15 to 59 basis points, depending on the scheme.
The Islamic savings schemes have seen the most significant reduction in profit rates. For instance:
- The Sarwa Islamic Term Account and Sarwa Islamic Savings Account have both witnessed a reduction of 59 basis points.
- As a result, the profit rate has dropped from 10.34% to 9.75%.
Here are the revised profit rates for other popular National Savings certificates:
- Regular Income Certificates
Reduced by 36 basis points, the new rate is now 11.16%. - Special Savings Certificates
Decreased from 10.90% to 10.60%, reflecting a 30 basis points cut. - Defence Savings Certificates
A minor cut of 15 basis points has been made, bringing the rate down from 11.91% to 11.76%.
Profit rates for schemes specifically designed for senior citizens and families of martyrs have also been reduced. These include:
- Pensioners Benefit Account
- Bahbood Savings Certificates
- Shuhada Family Welfare Account
Each of these has seen a 24 basis points decrease, setting the new rate at 13.2%.
One exception is the Standard Savings Account, where the profit rate has been kept steady at 9.5%.
These revisions come at a time when the State Bank of Pakistan (SBP), in its recent monetary policy meeting held last month, kept the key interest rate unchanged at 11%.
This decision was influenced by global uncertainties — especially the rising tensions between Iran and Israel and the fluctuations in international commodity prices, which could impact Pakistan’s economy.
According to a Bloomberg report, around 56% of 40 financial analysts had predicted that the interest rate would remain unchanged in this policy announcement.
Economists suggest that the interest rate may be reduced further by the end of 2025, possibly reaching 10% by December, depending on inflation trends and international developments.
The reduction in profit rates is a setback for many Pakistani citizens who rely on National Savings schemes for secure returns — particularly retirees, low-income families, and individuals saving for the future. While the move aligns with current monetary policy directions, it also reflects the government’s balancing act between offering attractive returns and managing fiscal pressures.
