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CDNS Adjusts National Savings Returns: Defence Cut, Islamic and Short-Term Raised

Analysts say the mixed adjustments reflect the SBP's 11% policy stance.

Overview

  • The changes took effect on September 17, setting Defence Savings Certificates at 11.42%, Short-Term Savings Certificates at 10.42%, and Sarwa Islamic saving and term accounts at 9.92%.
  • The Defence rate fell 12 basis points, while Short-Term rose 6 bps and the two Sarwa Islamic rates rose 42 bps each.
  • Analysts link the move to the MPC's decision to hold the policy rate at 11% given recent flood-related risks to the near-term outlook.
  • The National Savings Organisation manages over Rs3.4 trillion for more than 4 million customers through a network of 376 branches.
  • Profits remain subject to Zakat and withholding tax of 15% for filers and 35% for non-filers, which changes investors' net returns.