Pakistan’s National Savings has reduced profit rates on most of its savings instruments due to the overall decline in interest rates.

The Savings Account interest rate has been decreased from 16% to 13.5%. The Regular Income Certificate’s profit rate has dropped from 12.12% to 12% starting December 10.

The Special Savings Certificate’s profit remains at 11.60% per annum for the first five profits, increasing to 12.60% for the sixth profit.

Interest rates on the Behbood Savings Certificate, Pensioner’s Benefit Account, and Shuhada’s Family Welfare Account remain unchanged at 13.92%.

SARWA Islamic Term Account rates for one-year, three-year, and five-year terms have fallen to 10.44%, 10.92%, and 11.52%, respectively.

The State Bank of Pakistan has already lowered interest rates by 700 basis points from 22% in June to 15%. Analysts predict a further 200bps cut in the upcoming monetary policy meeting on December 16, potentially lowering the policy rate to 13%.

This is driven by a significant drop in inflation, which fell to 4.9% in November, the lowest in 79 months, and is expected to remain at this level in December.