The government lowers the savings profit rates of its citizens.

After the State Bank of Pakistan lowered its policy rate earlier this month, the Central Directorate of National Savings (CDNS) cut the profit rates of its several savings plans by as much as 100 basis points.

With the new profit rate settling at 9.5 cent instead of the prior 10.5 cent, the basic savings account received the largest drop of 100 basis points.

The Special Savings Certificate’s profit rate dropped 30 basis points to 10.9 cent, while the Defence Savings Certificate’s profit rate dropped 21 basis points to 11.91 cent.

In a similar vein, the return on the Regular Income Certificates decreased by 18 basis points, to 11.52 cent, while the Behbood Savings Certificates experienced a 24 basis point decline, to 13.44 per cent.

The profit rate of the Pensioners Benefit Account was trimmed by bps to 13.44pc while the Shuhada Family Welfare Account now yields 13.44 pc after a cut of 24 pc.

The Sarwa Islamic Term Account and Sarwa Islamic Saving Account profit rates have been lowered by 10 basis points to 10.34 cent by CDNS.

SBP lowers policy rates by 100 basis points to 11 cent.

The central bank lowered the policy rate by 100 basis points (bps), to 11 cent, a few weeks prior to this move.

In a statement, the State Bank of Pakistan (SBP) announced that the Monetary Policy Committee (MPC) decided to reduce the interest rate, citing the lower-than-anticipated April inflation — largely the result of falling prices in perishable foods and energy.

Due primarily to the large comparative base from the prior year, April’s inflation rate was only 0.3%.

This decline was driven by reduced prices of essential food items like wheat, onions, potatoes, and some pulses, along with lower electricity and fuel costs.

Since these goods hold considerable weight in the Consumer Price Index (CPI), even slight changes in their prices can significantly impact overall inflation.