Karachi: The government recently stated that it had revised profit rates on saving certificates by as much as 36 basis points in order to encourage investments, a news source reported. The Central Directorate of National Savings (CDNS), which works under the Finance Ministry, announced 36 basis points increase on Pensioner Benefit Account, Shuhada Family Welfare Account, and Behbood Saving Certificates. The profit on these certificates increased to 10.32%.
The rates on Defence Saving Certificates have increased by 34 basis points to 8.44% while the rates on Regular Income Certificates were seen to increase by 20 basis points to 7.80%. The rates are applicable from August 4. CDNS had also revised the profit rates last month by 16 basis points.
Last month, the State Bank of Pakistan (SBP was expected to announce an additional decline of around 50 basis points in the interest rate from its current position at 7%. However, SBP deferred its Monetary Policy Committee meeting till September; signalling that interest rate has bottomed out at its current rate. It was on the back of these developments that the profit rates on certificates were increased this month.
