ISLAMABAD: The Central Directorate of National Savings (CDNS) has announced a downward revision in profit rates across several government-backed savings schemes, with cuts of up to 100 basis points, following a broader decline in market interest rates.
According to data available data, the most significant reduction was applied to the Basic Savings Account, which saw its rate slashed by 100 basis points, bringing the new return to 9.5%.
Other notable adjustments include:
- Special Saving Certificate: Down by 30 basis points to 10.9%
- Defence Savings Certificate: Reduced by 21 basis points to 11.91%
- Regular Income Certificate: Lowered by 18 basis points to 11.52%
- Pensioners Benefit Account: Cut by 24 basis points to 13.44%
- Behbood Savings Certificate & Shuhada Family Welfare Account: Both reduced by 24 basis points to 13.44%
Islamic savings products also experienced modest rate cuts. The Sarwa Islamic Term Account and the Sarwa Islamic Saving Account were both reduced by 10 basis points, with new profit rates set at 10.34%.
The CDNS, Pakistan’s largest public-sector financial institution, manages over Rs3.4 trillion in assets and serves more than four million customers through its network of 376 branches across the country, overseen by 12 regional directorates. The institution plays a key role in mobilizing domestic savings to help the government finance budgetary needs and infrastructure development.
These adjustments follow the State Bank of Pakistan’s (SBP) recent decision to cut its benchmark interest rate by 100 basis points to 11% — a move that exceeded market expectations. The Monetary Policy Committee cited a significantly improved inflation outlook and a need to cushion the economy from global economic pressures, including escalating U.S. tariffs and geopolitical uncertainty.
According to the Pakistan Bureau of Statistics (PBS), headline inflation in April 2025 dropped to a historic low of just 0.3% year-on-year, down sharply from 17.3% in April 2024 and 0.7% in March. The decline was largely driven by widespread reductions in food and energy prices.
