On July 26, 2025, Pakistan’s Ministry of Finance announced significant reductions in the National Savings Profit Rates, effective from July 28. This change will impact millions of investors. The revised rates affect Behbood, Defence, Regular Income Certificates, and Sarwa Islamic products, aligning them with ongoing fiscal reforms.
The changes in National Saving Profit Rates:
| Investment Scheme | Profit/Return | Payment Frequency | Additional Deductions/Notes |
|---|---|---|---|
| Special Savings Certificates | 10.4% per annum (first five profits), 11.0% (sixth profit) | Paid biannually | Withholding tax: 15% (filers), 30% (non-filers); 2.5% Zakat deduction |
| Defence Savings Certificates | Starts at 9% (Year 1), cumulative 200% over 10 years | Paid at maturity | Incremental returns |
| Regular Income Certificates | Rs890/month per Rs100,000 (10.68% p.a.) | Paid monthly | |
| Behbood, Pensioners’, Shuhada Accounts | Rs1,080/month per Rs100,000 (12.96% p.a.) | Paid monthly | Eligible for widows, seniors, disabled, retirees, and Shuhada families |
| Short-Term Savings Certificates | 10.32% (3 months), 10.20% (6 months), 10.14% (1 year) | At maturity | |
| Sarwa Islamic Term Accounts | 9.94% (1 year), 10.30% (3 years), 10.80% (5 years) | At maturity | Islamic Shariah-compliant |
| Sarwa Islamic Saving Account | 9.94% per annum (Rs828/month per Rs100,000) | Paid monthly | Islamic Shariah-compliant |
| General Savings Account | 9.5% per annum (unchanged) | Paid as per bank policy |
The rate cuts are in line with Pakistan’s fiscal strategy, which follows a $2.1 billion current account surplus for FY25 and a tax collection of Rs1.02 trillion by the FBR. These adjustments aim to balance returns with economic stability amidst reforms supported by the IMF.
According to a report by Business Recorder, these reductions might prompt investors to shift their preferences from fixed-return schemes to alternatives such as stocks, with the KSE-100 recently rising by 515 points.
Pakistan National Savings Profit Rates
| Scheme | Old Rate (p.a.) | New Rate (p.a.) | Monthly Return (per Rs100,000) |
|---|---|---|---|
| Special Savings | 12.0% | 10.4%-11.0% | Varies |
| Regular Income | 11.04% | 10.68% | Rs890 |
| Behbood/Shuhada | 13.92% | 12.96% | Rs1,080 |
| Sarwa Islamic (1-Year) | 10.50% | 9.94% | Rs828 |
Data sources: Ministry of Finance, Business Recorder.
The Ministry encourages investors to check the terms at National Savings Centres or authorized banks, as interest rates greatly affect fixed-income strategies, particularly for seniors and families of martyrs. Pakistan’s decreased savings rates are a result of fiscal tightening, which may create challenges for investors. Consulting with experts is essential for navigating these changes effectively.
