The government of Pakistan has recently made adjustments to the profit rates offered on national savings schemes, along with their Islamic financial products and accounts. These changes were officially implemented on October 30, and they were communicated through an official notification from the Ministry of Finance.
Among the notable changes is the increase in the profit rate for savings accounts, which has been raised by 1 percent, resulting in a new annual rate of 20.5 percent. Similarly, the profit rate for special savings accounts has seen a 20-basis point increase, reaching a rate of 18 percent.
In contrast, the profit rate on deposits in Pensioners' Benefit Accounts, Bahbood, and Shuhada's Family Welfare Account has been reduced and is now fixed at 16.32 percent per annum, down from the previous rate of 16.56 percent.
Furthermore, the return on short-term one-year certificates has been adjusted to 21.72 percent, marking a significant increase from the previous rate of 19.82 percent.
It's important to note that there have been no announced changes for the one-year Sarwa Islamic Term Accounts (SITA), which will continue to be available to investors at a rate of 20.80 percent.
However, the expected rate of return for a three-year SITA has been increased to 18.23 percent, effective from October 30, compared to the previous rate of 18 percent set in June of this year. Similarly, the expected return on five-year SITA has been revised to 15.72 percent from the previous 12.84 percent, marking a substantial increase of nearly 3 percent.
In addition to these adjustments, the Sarwa Islamic Saving Account (SISA), which operates as a running account, will now offer a return of 20.50 percent, up from the previous rate of 19.50 percent. These financial products are scripless, and the profits earned will be deposited into either the investors' bank accounts or national savings accounts through Raast accounts, depending on the specific arrangement.