Govt cuts profit rates on savings schemes

The government on Wednesday reduced profit rates on all national savings schemes — except the regular savings account — including Sharia-compliant instruments, in line with a broa­der easing of interest rates. The savings account remains the only instrument with an unchanged profit rate of 9.5pc. The revised rates follow a decline in cut-off yields on government papers (such as T-bills) and a reduction in the central bank’s policy rate to 11pc from its peak of 22pc. However, the Central Directorate of National Savings did not officially publish or announce the new rates, as is often the case. Instead, notifications were quietly circulated through internal channels and agents — sometimes weeks later via post.