The government had decided to reduce the profit rates for national savings schemes with immediate effect in line with cuts in the benchmark interest rates in a short span of time.
Interest rates were revised down after the State Bank of Pakistan (SBP) aggressively cut the benchmark interest rate by 4.25% in one month.
According to a notification, the profit rate has been slashed by:
- 1.86% to 8.54% from 10.54% on Defense Saving Certificates
- 1.92% to 10.32% from 12.28% on Behbood and Pension Funds
- 1.60% to 7% from 8.60% on Savings Account
- 3% to 8% from 11.13% on Special Saving Certificates (SSC)
- 2.28% to 8.28% from 10.56% on Regular Income certificate
The new rates were applicable from April 24, 2020. The profit is payable on the deposits made in the savings bank accounts where withdrawals are made through other than cheques was fixed at 7 percent per annum. The profit rate on monthly balances maintained in Shuhada’s family welfare account was set at 10.32% per annum.
During the first seven months, the directorate managed to collect Rs. 116 billion. It was tasked to collect Rs. 352 billion in savings during the current fiscal year, as opposed to the actual collection of Rs. 410 billion in the last fiscal year.