ISLAMABAD (PEN) : In a move reflecting the ongoing decline in market yields, the Central Directorate of National Savings (CDNS) has announced a reduction in profit rates for various government-backed savings instruments. The cuts affect both conventional and Islamic savings schemes, with some rates slashed by up to 100 basis points.
Key Reductions in National Savings Rates
According to the new rates, the basic savings account rate saw the largest reduction, dropping by 100 basis points to 9.5%. This significant decrease is part of a broader adjustment that also impacts several other popular government savings products.
The Special Saving Certificate, a widely used investment option, now offers a return of 10.9%, following a 30 basis point reduction. Similarly, the Defence Savings Certificate’s yield has been reduced by 21 basis points, bringing its return to 11.91%.
Other notable changes include:
The Regular Income Certificate, which now offers a yield of 11.52%, down by 18 basis points.
The Pensioners Benefit Account, yielding 13.44% after a 24 basis point reduction.
The Behbood Savings Certificate and the Shuhada Family Welfare Account, both of which now yield 13.44%, after a reduction of 24 basis points.
Islamic savings instruments such as the Sarwa Islamic Term Account and Sarwa Islamic Saving Account also saw a decrease, with rates lowered by 10 basis points to 10.34%.
Impact of Recent Economic Developments
These adjustments come on the heels of the State Bank of Pakistan’s (SBP) recent decision to lower its key interest rate by 100 basis points to 11%, a move aimed at bolstering the country’s economic outlook. The SBP’s decision was driven by a significant reduction in inflation, which dropped to a historic low of 0.3% year-on-year in April 2025. This follows a decline in food and energy prices, which had contributed to a much higher inflation rate of 17.3% in April of the previous year.
The SBP’s policy change also comes as Pakistan faces geopolitical challenges and ongoing concerns over US tariffs. By lowering rates, the central bank aims to support economic recovery while keeping inflation under control.
CDNS’s Role in Pakistan’s Economy
The Central Directorate of National Savings plays a crucial role in Pakistan’s financial landscape. As the country’s largest financial institution, CDNS manages over Rs3.4 trillion in assets and serves more than four million customers across 376 branches nationwide. The institution’s savings products are vital in supporting the government’s budgetary needs and financing key infrastructure projects.
Despite the recent rate cuts, CDNS remains an essential avenue for individuals looking for low-risk investment opportunities while contributing to national economic growth.
