Pakistan cuts profit rates on most National Savings schemes

Pakistan reduced annual profit rates on most National Savings schemes, cutting returns on pension, Behbood, regular income and special savings products by up to 36 basis points, according to revised rates announced Monday. The one-year Short Term Savings Certificate was the exception, with its rate rising slightly.

What is the profit rate of National Savings schemes?

National Savings profit rates now range from 10.86% to 12.60% depending on the product, following Monday's revision. Most schemes saw rate cuts of up to 36 basis points, while the one-year Short Term Savings Certificate rose by 11 basis points to 11.28%. The changes affect pensioners, households and other savers who rely on these government-backed instruments.

Which National Savings products saw rate cuts?

The profit rate on Pensioner Benefit Accounts and Behbood Savings Certificates was reduced by 36 basis points to 12.60%. Regular Income Certificates saw the same 36 basis point cut, bringing their rate down to 11.16%. The return on Special Savings Certificates and Accounts was lowered by 30 basis points to 10.90%.

Short Term Savings Certificates were revised too, though the changes varied by maturity. The three-month certificate rate fell 26 basis points to 10.86%, while the six-month certificate dropped 28 basis points to the same 10.86%.

Which National Savings rate increased?

The one-year Short Term Savings Certificate was the only product to see its rate rise, increasing 11 basis points to 11.28%. This means most National Savings investors will now earn lower annual returns, while those holding one-year short-term certificates will see a slightly higher payout.

National Savings schemes are widely used by households, pensioners and other savers seeking relatively stable returns on their investments. Changes in their profit rates generally reflect movements in domestic interest rates and the government's borrowing requirements. The latest revisions come as Pakistan's monetary and financial conditions continue to evolve, with market interest rates shaping the returns offered across government-backed savings instruments.

Key revised rates:

• Pensioner Benefit Accounts/Behbood: 12.60%, down 36 bps
• Regular Income Certificates: 11.16%, down 36 bps
• Special Savings: 10.90%, down 30 bps
• Short Term Certificate, 3 months: 10.86%, down 26 bps
• Short Term Certificate, 6 months: 10.86%, down 28 bps
• Short Term Certificate, 1 year: 11.28%, up 11 bps