The Central Directorate of National Savings (CDNS) has reduced profit rates on several of its National Savings Schemes while leaving others unchanged.
Rates of Regular Income Certificate (RIC) decreased by 12 basis points (bps) to 14.52%, down from 14.64%. The Special Saving Certificates (SSC) will offer a return of 15.2% return, as compared to 15.5% earlier a decrease of 30bps.
Similarly, the rate on Special Saving Account declined to 15.2% after a decrease of 30bps.
Short Term Savings Certificate (STSC) will now offer a return of 17.22% after registering a reduction of 68bps.
Meanwhile, the rate offered by Sarwa Islamic Savings Account (SISA) reduced by 100bps to 18%, down from 19%. However, the largest decline was seen in Sarwa Islamic Term Account (SITA), which will now offer a return of 16.36%, representing a decrease of 122bps.
The rate of other schemes remained unchanged.
The National Savings Organization is Pakistan’s largest financial institution, managing a portfolio exceeding Rs3.4 trillion and serving over 4 million customers through a network of 376 branches across the country, administered by 12 Regional Directorates.
The CDNS helps the government finance budgetary deficits and support critical infrastructure projects.
The reduction in rates comes as the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) reduced the key policy rate by 200bps, taking it to 17.5%, its third successive decision of a cut.
Pakistan’s headline inflation clocked in at 9.6% on a year-on-year basis in August 2024, lower than the reading in July 2024 when it stood at 11.1%.
The inflation reading was back into single digits after a span of three years, showed Pakistan Bureau of Statistics (PBS) data. Back in October 2021, CPI inflation stood at 9.2%.
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