RECORDER REPORT

KARACHI: The Central Directorate of National Savings (CDNS) has announced revision in the rates of return on some of its National Savings Schemes (NSSs).

The rates of Special Savings Certificates have been reduced by 40 basis points (bps) to fix at 16 percent down from 16.40 percent. Profit rate of Short-Term Savings Certificates (SSC) also revised downward by 46 bps to 20.34 percent as against 20.80 percent earlier.

In addition, the return on Defence Savings Certificates (STSC) declined by 19 bps and its new rate was set at 14.22 percent compared to the previous rate of 14.41 percent. Rate of return on Regular Income Certificates (RIC) has been reduced from 15.12 percent to 15 percent, falling by 12bps.

Profit rates on other schemes remained unchanged. The current change in the rate of return will take effect from January 26, 2024.

Analysts said that the revision in rates of savings schemes came after the decline in the cut-off yield of short-term and long-term government securities. In addition, KIBOR also dropped from its 25 percent to below 21 percent in January.

The meeting of Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) is also scheduled on Monday to decide about the key interest rate, which is unchanged at 22 percent since June last year.