KARACHI: The government has introduced new profit rates in various National Savings Schemes in Pakistan; an important factor to consider since it affects millions of Pakistanis depending on the scheme for their retirement funds, monthly income, and safekeeping of their investments. The interest rate in the National Savings Schemes is now determined in light of the current monetary policy rate of 11.5 percent.
Meanings of Each Interest Rate for Investors
Behbood Savings Certificates & Pensioners’ Benefit Account: 12.96%
These two schemes benefit Pakistan’s poorest savers, which include widows, retired people, and family members of dead government employees, since they rely upon regular profit payouts as a source of income. The interest rate of 12.96% implies that an investment of Rs.1 million will earn about Rs.10,800 each month.
Income Certificates – 11.52% (monthly income)
The NSSF Income Certificate rate means that for every Rs100,000 invested, an income of Rs960 is generated every month. Therefore, for investors who have invested Rs500,000, their monthly income will be Rs4,800, which will help cushion against the effects of inflation in Pakistan through food and energy sectors.
Special Savings Certificate – Step Rate System
The Special Savings Certificate follows a step rate system where the rate is 11.2 percent for the first six months and 12.6 percent for the last six months. It encourages investors to wait till maturity.
Family Welfare Scheme of Martyrs — 12.96%
Following the same interest rate as Behbood and Pensioners Benefit schemes, the Family Welfare Scheme for Martyrs yields an annual return of 12.96% to the relatives of security personnel who lose their lives while performing their duties.
Significance of the Rate Revision – Context of the Monetary Policy
The rate revision for the National Savings Schemes takes place amid the 11.5 percent policy rate, which is currently being used by Pakistan through the State Bank of Pakistan through its monetary policy of June 2026. National Savings Schemes rates are revised from time to time in order to maintain a proper gap between the rates and the policy rate.
The new rates will be applicable to the approximately 7 million National Savings certificate holders for whom this is the safest investment avenue available in terms of credit risk-free returns with periodic incomes.
Good News or Bad News for Savers?
In terms of what the title of the article says, the revision is bad news – but the facts behind the rates indicate otherwise. The rates applicable for the schemes that cater for widows, pensioners, and families of martyrs are pegged at 12.96%, which is higher than the 11.5% policy rate.
Other schemes such as the Regular Income Certificates have been rated at 11.52%, which is again slightly above the policy rate. Although not as high as the previous figures obtained when the policy rate was 22%, the new rates are still very good given the inflation level that is projected by the Finance Ministry to go below 11.7%.
Whether the change in the National Savings Scheme interest rate is positive or negative for a certain investor solely rests on when he/she got his/her initial rate because some investors were enjoying higher rates before, but now there is a cut in interest rates whereas, the new investors joining the scheme are getting rates comparable to those of banks.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
