Business

Pakistan savings rates decline by up to 122bps

This is mainly due to a decline in the cut-off yields of Pakistan Investment Bonds

Pakistan savings rates decline by up to 122bps

The largest drop in savings profit rates was observed in the Serwa Islamic Term Account, which fell to 16.36%

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The profit rates of Pakistan's National Savings have decreased by up to 122 basis points, mainly due to a decline in the cut-off yields of Pakistan Investment Bonds (PIBs).

Inflation, which peaked at 37.97% in May 2023, eased to 9.64% in August this year, is expected to go further down to 7.50% in September.

This easing is driven by lower food inflation and a high-base effect. In response, the State Bank of Pakistan lowered the policy rate from its peak of 22%.

The largest drop in savings profit rates was observed in the Serwa Islamic Term Account, which fell by 122 basis points to 16.36% as of September 12.

As of July, the stock of Savings Schemes stood at PKR 2,725 billion, categorized by the State Bank of Pakistan as unfunded debt, accounting for 5.7% of the total central government domestic debt.

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