The Pakistan government has announced a reduction in profit rates for various national savings certificates and schemes, sparking concerns among consumers.
As per a finance ministry notification, the profit rate on Regular Income Certificates has been adjusted to 15% from 15.12%, while National Saving Certificates’ return has been lowered to 16% from 16.40%. Similarly, short-term certificates’ profit rate has been revised to 20.34% from 20.80%. Conversely, Defense Savings Certificates will now yield 14.22%, down from 14.41%. Behbood Savings, Pension Benefit Account, and Shuhada Family Welfare Account retain their unchanged return at 16.08%.
This adjustment precedes the upcoming Monetary Policy Committee meeting of the State Bank of Pakistan scheduled for January 29, 2023. The SBP had maintained a key interest rate of 22% in its previous MPC, anticipating a decline in headline inflation in the second half of FY24. In December, CPI-based inflation registered at 29.7% year-on-year, slightly higher than November’s 29.29%, with a 0.8% month-on-month increase.
