KARACHI: The Central Directorate of National Savings has cut profit rates on most National Savings Schemes, effective January 5, 2026, in a move that reflects expectations of easing borrowing costs amid slowing inflation.
Returns on Special Savings Certificates were reduced by 40 basis points (bps) to 10.2 per cent, while rates on Regular Income Certificates were lowered by 36bps to 10.56 per cent, according to data compiled by Arif Habib Limited and released on Friday. The savings account rate was cut by 50bps to 9.0 per cent from 9.5 per cent, marking one of the steepest reductions across the schemes.
Rates on the Pensioners’ Benefit Account, Behbood Savings Certificate and Shuhada Family Welfare Account were each trimmed by 24bps to 12.48 per cent, while the return on Defence Savings Certificates was reduced by 23bps to 11.08 per cent.
Islamic savings products, however, moved in the opposite direction. The Sarwa Islamic Term Account and the Sarwa Islamic Saving Account both saw modest increases of four basis points, taking their returns to 9.96 per cent, making them among the few instruments to offer higher yields following the revision.
Market participants said the broad-based reduction was in line with expectations of a gradual decline in key interest rates, supported by moderating inflation and improving macroeconomic indicators.
Last month, the State Bank of Pakistan’s Monetary Policy Committee cut the benchmark policy rate by 50bps to 10.5 per cent, defying market expectations of a pause.
