Savings profit rate cuts for fourth month

PAKISTAN: The federal government announced on the 1^st November 2024 the fourth consecutive month of reductions in the profit rates on various national savings scheme certificates. The National Savings Department’s announcement saw the Special Savings Certificates being worst hit with a 360 basis points (bps) cut, as the profit was lowered from 15.2% to 11.6%. The Sarwa Islamic Savings Account and Sarwa Islamic Term Account rates were both slashed 309 bps to 11.16%. Further reductions are forecast as the State Bank of Pakistan continued to lower interest rates by another 250 bps later on the 4^th November 2024 – down 700 bps since June in four consecutive cuts as measures to revive the country’s economy.