On March 20, 2025, the government announced significant adjustments to the profit rates on National Savings Schemes (NSS), impacting a range of investment categories. These changes aim to provide better returns to investors while responding to the current financial landscape in Pakistan.
The most notable adjustment comes with the Sarwa Islamic Term Account (SITA), which saw a robust increase of 70 basis points (bps), rising from 9.74% to 10.44%. This change positions SITA as the scheme with the largest hike, offering a more attractive return for those investing in Shariah-compliant options.
The Short-Term Savings Certificates (STSC) also saw an upward revision, with its profit rate increasing by 15 bps, reaching a new rate of 10.96%. This increase, although modest in comparison to SITA, reflects the government’s ongoing efforts to make short-term savings products more appealing in an evolving economic environment.
For long-term investors, products such as the Bahbood Savings Certificates (BSC), Pensioner Benefit Account (PBA), and Shuhada Family Welfare Account (SFWA) also saw an uplift. Each of these accounts enjoyed a 10 bps increase, bringing their respective profit rates to 13.68%. These rates are particularly beneficial for retirees and families of martyrs, providing consistent and reliable returns, in line with the government’s continued support for these groups.
In contrast, the Defence Savings Certificates (DSC) experienced a much smaller increase of just 1 basis point, now standing at 12.15%. While this remains an attractive option for investors looking for medium-term returns, the minimal increase suggests a more cautious adjustment in this category.
However, not all updates have been positive. The Savings Account (SA) saw a significant reduction of 100 bps, dropping from 11.50% to 10.50%. This cut may affect those who rely on savings accounts for short-term liquidity and a safe haven for their funds. The drop in this rate reflects the broader shift in government policies, possibly tied to ongoing inflation management and fiscal consolidation efforts.
The adjustments to National Savings Schemes profit rates come at a time when investors are seeking stable returns amid global financial volatility. As these schemes are backed by the government, they remain one of the safest investment options available in Pakistan, despite the mixed changes in profit rates across different categories.
For investors, these changes may provide an opportunity to reassess their portfolios and adjust their strategies accordingly. Those looking for higher returns might consider shifting their investments to products like the Bahbood Savings Certificates or Sarwa Islamic Term Account, while others may need to consider alternatives if the drop in the Savings Account rate impacts their financial planning.
As always, these changes reflect the government’s response to the dynamic economic conditions in the country, providing both opportunities and challenges for savers and investors. With the evolving landscape of the global economy and domestic fiscal policies, these adjustments could set the tone for future investment decisions in Pakistan’s financial markets.
The government has emphasized that these updated profit rates will come into effect immediately, providing an opportunity for both new and existing investors to benefit from the changes.