ISLAMABAD: The Central Directorate of National Savings (CDNS) has adjusted the profit rates on several of its National Savings Schemes, implementing notable reductions while leaving others unchanged.
The most significant cut is observed in the profit rate of the Savings Account (SA), which has been reduced by 150 basis points (bps), dropping from 20.5% to 19%. Similarly, the Short Term Saving Certificates (STSC) now offer a return of 17.9%, down 134bps from the previous 19.24%. The Sarwa Islamic Saving Account also saw a reduction, with its rate declining by 150bps to 19%.
However, the profit rates for other National Savings Schemes remain unchanged. The new rates took effect on August 7, 2024.
The National Savings Organization, Pakistan’s largest financial institution, manages a substantial portfolio exceeding Rs3.4 trillion and serves over 4 million customers through its extensive network of 376 branches nationwide, overseen by 12 Regional Directorates.
The CDNS plays a crucial role in generating funds for the government, helping to finance budgetary deficits and support essential infrastructure projects.
This adjustment in profit rates follows the State Bank of Pakistan’s (SBP) recent decision to reduce the key policy rate by 100bps, bringing it down to 19.5%—its second consecutive cut. This decision was influenced by Pakistan’s headline inflation, which decreased to 11.1% year-on-year in July 2024, the lowest since November 2021 when it stood at 11.5%, according to the Pakistan Bureau of Statistics (PBS).
