Pakistan revises national savings schemes profit rates

The government of Pakistan on Wednesday has announced revised profit rates for its National Savings Schemes (NSS), effective March 20, 2025. The changes include adjustments to several key certificates and accounts.

The profit rate for the Defence Savings Certificate (DSC) has been increased to 12.10%. However, rates for the Behbud Savings Certificate (BSC), Pensioners’ Benefit Account (PBA), and Shuhadas Family Welfare Account (SFWA) remain unchanged at 13.68%.

Special Savings Certificates will now offer profit of 11.20%, down from the previous rate of 11.60%. The Regular Income Certificate rate has been reduced to 11.75% from 11.88%.

Short-Term Savings Certificates (STSC) have also seen downward revisions. The profit for the 3-month STSC is now PKR 2,780 per PKR 100,000, compared to PKR 2,810 previously. The 6-month STSC offers PKR 5,540 per PKR 100,000, down from PKR 5,660, while the 1-year STSC rate has dropped to PKR 10,960 per PKR 100,000 from PKR 11,380.

The Savings Account rate has been reduced to 10.50% per annum, down from 11.50%, while the Sarwa Islamic Saving Account (SISA) remains steady at 10.44% per annum.

These rates are subject to withholding tax deductions of 15% for filers and 35% for non-filers, as well as zakat deductions of 2.5%, in accordance with applicable rules.

Analysts note that with inflation expectations for March 2025 below 1%, real rates are significantly higher than Pakistan’s historical average. However, with FY26 inflation estimates at 8-9%, real rates are expected to moderate. The central bank may pause its rate cut cycle until the second half of 2025, given the IMF review, the FY26 budget, and rising imports. Inflation for FY25 is projected to range between 5-7%.