The Central Directorate of National Savings (CDNS) has announced a revision in profit rates across several of its National Savings Schemes (NSS), effective September 17, 2025. The adjustment comes against the backdrop of the State Bank of Pakistan’s (SBP) recent decision to maintain the benchmark policy rate at 11 percent, a stance reflecting both stability in monetary policy and caution amid economic headwinds.
According to data compiled by Arif Habib Limited (AHL) Research, the rate on Short Term Savings Certificates has been marginally raised by 6 basis points, moving to 10.42 percent from the earlier 10.36 percent. Meanwhile, investors in Islamic savings products have received a stronger uplift. Returns on the Sarwa Islamic Saving Account and the Sarwa Islamic Term Account have been increased by 42 basis points each, with both products now offering 9.92 percent per annum, compared to 9.50 percent previously.
On the other hand, the revision has not been uniform across all products. The profit rate on Defence Savings Certificates has been reduced by 12 basis points, now standing at 11.42 percent compared to the earlier 11.54 percent. Market analysts interpret this selective adjustment as a balancing act by CDNS, aligning savings rates with broader market trends and liquidity requirements while managing the government’s borrowing costs.
The revisions follow the Monetary Policy Committee’s (MPC) recent decision to keep the SBP policy rate unchanged. The MPC cited the near-term challenges to Pakistan’s economy, particularly the adverse effects of recent floods, which are expected to weigh on agricultural output and disrupt supply chains. Keeping the policy rate steady at 11 percent was aimed at anchoring inflation expectations while providing some support to growth amid fragile conditions.
The CDNS, Pakistan’s largest savings institution, manages a massive portfolio exceeding Rs3.4 trillion, serving more than 4 million customers nationwide. Its network comprises 376 branches administered through 12 Regional Directorates, making it one of the most accessible government-backed financial platforms in the country.
Through its savings schemes, CDNS plays a vital role in mobilizing household savings, offering citizens safe investment avenues while simultaneously helping the government finance budgetary deficits. Funds raised through NSS are critical in supporting key public expenditures, including infrastructure development and social sector projects.
The latest revision reflects the dynamic nature of Pakistan’s financial landscape, where savings rates must be periodically adjusted in response to shifts in monetary policy, inflation, and liquidity conditions. For investors, the changes represent both opportunities and trade-offs: while Islamic savings account holders benefit from higher returns, holders of Defence Savings Certificates will see a slight decline in yield.
As global and domestic economic conditions evolve, future revisions to NSS rates will remain closely tied to SBP’s monetary policy decisions and the government’s broader financing strategy. For now, the adjustment highlights the balancing role CDNS continues to play between serving savers and meeting fiscal needs.
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