According to a recent update the government of Pakistan has officially reduced the profit rates on various savings schemes, affecting millions of citizens who rely on them for monthly income or retirement support.

According to a notification issued by the Ministry of Finance, the profit rates have been revised downward for several key schemes.

These include Special Saving Certificates, Special Saving Accounts, and Defence Saving Certificates. Additionally, the rates for Regular Income Certificates, Bahbood Savings Certificates, Pensioners Benefit Accounts, Shuhada Family Welfare Accounts, and Short-Term Savings Certificates have also been reduced.

Specifically, the profit rate on Special Saving Certificates and Accounts has been lowered from 10.6% to 10.4%, while Bahbood Savings, Pensioners Benefit, and Shuhada Family accounts now offer 12.96%, down from the previous 13.20%. This reduction is expected to directly impact individuals who rely on these schemes for steady income post-retirement.

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Significant changes have also been made to the Defence Saving Certificates. The total profit after nine years has been reduced from 162% to 161%, and for ten years, the profit has been cut from 204% to 200%.

However, some schemes have retained their current profit rates as the regular Savings Account will continue to offer 9.50%. Meanwhile, profit rates have been increased for Sarwa Islamic Term Accounts and Islamic Savings Accounts, as detailed in the official notification.

These new profit rates will come into effect starting July 28, 2025. While the government has justified the changes as part of fiscal discipline and market conditions, financial experts warn the move could severely impact pensioners, retirees, and low-income individuals who rely on these schemes as a secure investment.