Mohsin Siddiqui (Chief Reporter)

The Central Directorate of National Savings (CDNS) has recently revised the rates of return on various National Savings Schemes. The adjustments come in the wake of the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) decision to maintain the key interest rate at 22% earlier this month.

Notable changes include a 160 basis points reduction in the rates of Special Savings Certificates (SSC), bringing it down to 16.4% from the earlier 18%. Similarly, Short Term Savings Certificates (STSC) will now yield 20.8%, a decrease of 92 basis points from the previous 21.72%. The return on Regular Income Certificates (RIC) has been reduced to 15.12%, marking a 96 basis points decrease from 16.08%.

Additionally, Bahbood Savings Certificates (BSC), Shuhda Family Welfare Account, and Pensioners Benefit Account (PBA) have seen marginal reductions by 24 basis points, settling at 16.08% from the previous 16.32%.

These adjustments in the rate of return are effective from December 19 onward, impacting individuals invested in these savings schemes.

The MPC, in its recent statement, highlighted the expectation of a significant decline in headline inflation in the second half of FY24. This projection is based on factors such as contained aggregate demand, eased supply constraints, moderation in international commodity prices, and a favorable base effect.

According to the Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI)-based inflation registered at 29.2% on a year-on-year basis in November 2023, up from 26.9% in October. These inflationary trends contribute to the CDNS’s decision to adjust the rates of National Savings Schemes in response to the broader economic conditions. Stay informed for further updates on Pakistan’s economic landscape.