Pakistan’s Central Directorate of National Savings (CDNS) on Friday lowered profit rates on most of its National Savings Schemes, aligning administered returns with the country’s easing monetary stance as inflation cools and economic indicators improve, analysts said.
Data compiled by Arif Habib Limited showed the steepest reduction was in Short-Term Special Savings Certificates, where returns were cut by 110 basis points to 9.58% from 10.68%.
The profit rate on Defence Saving Certificates was reduced by 64 basis points to 10.44%, while Regular Income Certificates saw a 60 basis-point decline to 9.96% from 10.56%.
Rates on the Pensioners’ Benefit Account, Behbood Savings Certificate and Shuhada Family Welfare Account were each lowered by 48 basis points to 12% from 12.48%. The Special Savings Certificate rate was cut by 40 basis points to 10.20%.
In contrast, the Special Savings Account posted a rare increase, with returns rising by 20 basis points to 10.40%, making it one of the few instruments to offer higher yields after the revision.
“The broad-based reduction in national savings rates is consistent with the central bank’s shift toward monetary easing,” said an economic analyst at a Karachi-based brokerage firm. “With inflation cooling and macroeconomic stability improving, administered rates are being adjusted downward to align with market yields.”
The move follows last month’s decision by the State Bank of Pakistan’s Monetary Policy Committee to cut the benchmark policy rate by 50 basis points to 10.5%, a step that surprised some market participants who had expected rates to remain unchanged.
The National Savings Organization is Pakistan’s largest financial institution, managing a portfolio of more than PKR 3.4 trillion and serving over four million customers through 376 branches nationwide, administered by 12 regional directorates.
National savings schemes play a crucial role in financing the government’s budget deficit and supporting infrastructure development.
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