Pakistan’s National Savings Organization has reduced interest rates on most of its savings instruments due to the overall decline in interest rates.
The Special Savings Certificate’s interest rate remains at 11.60% per annum for the first five profits, increasing to 12.60% for the sixth profit.
The Defence Savings Certificate offers a progressive profit rate over ten years, starting at 9% in the first year and reaching 172% by the ninth year, peaking at 210% in the tenth year, down from the previous 218%.
The Regular Income Certificate’s profit rate drops from 12.12% to 12% starting December 10. Interest rates on the Behbood Savings Certificate, Pensioner’s Benefit Account, and Shuhada’s Family Welfare Account remain unchanged at 13.92%.
The Savings Account rate decreases from 16% to 13.5%. SARWA Islamic Term Account rates for 1-year, 3-year, and 5-year terms fall to 10.44%, 10.92%, and 11.52%, respectively.
The State Bank of Pakistan has already lowered interest rates by 700 basis points from 22% in June to 15%. Analysts predict a further 200bps cut in the upcoming monetary policy meeting on December 16, potentially lowering the policy rate to 13%.
This is driven by a significant drop in inflation, which fell to 4.9% in November, the lowest in 79 months, and is expected to remain at this level in December.
