Pakistan Government Lowers National Savings Rates

The Pakistani government has announced a reduction in profit rates for various national savings schemes, effective November 4, 2024, with decreases reaching up to 309 basis points. The new rates impact several products including the Special Savings Certificates, Defence Savings Certificates, and Regular Income Certificates. Specifically, the profit rate for the Bahbood Savings Certificate has been lowered from 14.16% to 13.92%, while the Pensioners' Benefit Account rate dropped from 14.2% to 13.92%. The cuts are part of broader economic measures amidst a context of decreasing interest rates and inflation, as the State Bank of Pakistan recently lowered its benchmark rate from 22% to 17.5%. Despite the changes, the profit rates on standard savings accounts remain unchanged, providing some relief to account holders. Investors in Defence Savings Certificates can still anticipate considerable long-term returns despite the recent rate adjustments.