National Savings Schemes to Face Profit Rate Cuts Amidst Macro-economic Adjustments

The State Bank of Pakistan has announced reduced profit rates for various National Savings schemes, effective December 10. The adjustments come as part of the government's efforts to synchronize National Savings Scheme rates with broader macroeconomic objectives amid declining interest rates and inflation.

The largest reduction in profit rate is observed in the Savings Account, which saw a significant drop of 250 basis points. The new profit rate for Savings Account is now 13.5%, down from 16%. This substantial cut is intended to bring savings rates in line with changing economic conditions. Similarly, special savings accounts have been reduced by 50 basis points, resulting in a revised profit rate of 8.75%. Common people with Regular Income Certificates will receive a reduced profit rate of 12.1%, a minimal decrease of 0.12 percentage points, from 12.22%. Defense Savings Certificates, which saw a reduced profit rate of 50bps, now are at the rate of 14.75%. Sarwa Islamic Savings Account and Dar Savings Certificate profit rate remained reduced to 10.44% and 13.75%, respectively, after decreasing by 72 basis points.

The decision to revise National Savings Scheme profit rates follows the State Bank of Pakistan's upcoming policy meeting on December 16, where interest rates could be further adjusted. The move aims to maintain macroeconomic stability and support the broader economic sector. While the exact outcome of the policy meeting is yet to be announced, the current adjustments demonstrate the government's concerted effort to align National Savings Scheme rates with emerging economic conditions.

The adjustment in profit rates will be implemented from December 10, 2024. Observers are anticipating further adjustments in monetary policies and schemes as the government continues to implement strategic measures to steer Pakistan's economy forward amidst global economic uncertainties.