Pakistan cuts profit rates on National Savings schemes, hitting millions of small investors

Pakistan has announced a reduction in profit rates across multiple National Savings schemes, dealing a financial blow to millions of depositors who rely on these instruments for stable income.

The revised rates will take effect from November 4, according to an official notification issued Tuesday.

Under the new rates, the Defense Savings Certificates will now offer a return of 11.3%, down by 11 basis points.

Similarly, the Bahbood Savings Certificates, Pensioner’s Benefit Accounts, and Shuhada Family Welfare Accounts have seen the steepest cut—a decline of 24 basis points, bringing their new profit rate to 12.72%, applicable for up to 10 years.

The Regular Income Certificates will now yield 10.92%, reflecting a 12 basis-point reduction, while the Special Savings Certificates and Accounts have been trimmed by 20 basis points to a new 10.60% rate for three years.

Short-term investment certificates and savings certificates will now offer 10.44%, while the quarterly profit rate has been revised to 10.30%.

In contrast, the Savings Account profit rate remains unchanged at 9.50%, and the Sarwa Islamic Savings Account continues to offer an annual return of 9.92%, with a three-year rate of 10.30%.

Meanwhile, the two-year profit rate on Premium Bonds has been reduced to 2.92%.

Officials said the adjustments reflect changing economic conditions and interest rate trends.

However, analysts warn the cuts may disproportionately affect retirees, widows, and small investors who depend on fixed-income schemes for financial security.