CDNA cuts profit rates on saving schemes amid falling inflation

KARACHI: The Central Directorate of National Savings (CDNS) has reduced profit rates on several government-backed savings schemes following a drop in the State Bank’s key interest rates and a sharp fall in inflation.

The biggest cut was seen in the Basic savings account, with the rate slashed by 100 basis points to 9.5%. 30 basis points reduced the special saving certificates rate to 10.9%, while the Defense Savings Certificate dropped by 21 basis points to 11.91%.

Regular income certificates now offer 11.52% after an 18-point basis cut. Similarly, the Pensioners Benefit account and Behbood Saving Certificate, both aimed at senior citizens, now yield 13.44% after a 24 basis point reduction. The same rates apply to the Shuada Family Welfare account, reserved for families of martyrs.

Islamic savings products also saw cuts. The Sarwa Islamic Term Account and Sarwa Islamic Saving Account now offer 10.34%, down by 10 basis points.

These changes follow the State Bank of Pakistan’s decision to lower the policy rate by 100 basis points to 11% earlier this month.

The Cut was made due to a better inflation outlook and concern about external economic pressures.

Inflation in April 2025 fell sharply to 0.3% year on year, the lowest in Pakistan’s history, compared to 17.3% a year earlier. Monthly inflation also dropped to 0.8%, reversing a 0.9% rise in March, largely due to falling food and energy prices.

CDNS manages over Rs 3.4 trillion in assets and serves more than 4 million customers nationwide through a nationwide network of 376 branches across the country, administered by 12 Regional Directorates.

It plays a vital role in helping the government finance its budgetary deficits and support key infrastructure projects.