Pakistan raises profit rates on National Savings Schemes from October 21

ISLAMABAD – The government has increased profit rates on several national savings schemes, including those designed for pensioners, senior citizens and families of martyrs. The revised rates came into effect on October 21.

According to the updated schedule issued by the Central Directorate of National Savings (CDNS), the profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada Family Welfare Accounts has been raised to 12.96 per cent from 12.72 per cent.

Following the revision, investors with Rs100,000 deposited in these schemes will receive a monthly profit of Rs1,080, up from the previous Rs1,060.

The profit rate on Regular Income Certificates has also been increased from 11.76 per cent to 12.12 per cent. The revised rate will raise the monthly return on an investment of Rs100,000 to Rs1,010 from Rs980.

Meanwhile, the return on Special Savings Certificates has been revised upwards to 12 per cent from 11.6 per cent for the first five profit payments. Investors holding certificates worth Rs100,000 will receive Rs6,000 every six months. The sixth and final payment will amount to Rs6,400, calculated at a rate of 12.8 per cent.

Returns on Defence Savings Certificates Increased

The government has also raised cumulative returns on Defence Savings Certificates across various investment periods.

Under the revised schedule, the cumulative return on six-year certificates has increased to 88 per cent from 86 per cent, while the return on seven-year certificates has risen to 113 per cent from 109 per cent.

For eight-year certificates, the cumulative return has been raised to 142 per cent from 136 per cent. The return on nine-year certificates has increased to 176 per cent from 168 per cent, while the 10-year return has climbed to 215 per cent from 205 per cent.

Short-Term and Islamic Savings Schemes

Profit rates on Short Term Savings Certificates have also been revised. The rate for three-month certificates has increased from 10.80 per cent to 11.12 per cent, while rates for longer investment periods have been raised to as high as 11.72 per cent.

The revised schedule also includes higher returns on Sharia-compliant savings products. Profit rates on Sarwa Islamic Term Accounts now range between 11.84 per cent and 12.12 per cent, depending on the investment period.

The rate on Sarwa Islamic Savings Accounts has also been increased to 11.84 per cent from 11.33 per cent.

However, the annual profit rate on ordinary Savings Accounts remains unchanged at 10 per cent.

Tax and Zakat Deductions

According to the official schedule, profits earned through national savings schemes are subject to withholding tax at 15 per cent for tax filers and 30 per cent for non-filers.

Zakat deductions will also apply where required under the relevant rules.

The revised rates are expected to increase returns for investors in several government-backed savings products, particularly pensioners and other beneficiaries who rely on regular income from their investments.