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Govt Increases Interest Rates on National Saving Schemes

Karachi(July 04, 2018): The government has increased the rate of profit by 12 to 50 basis points on national saving schemes with effect from July 1, 2018, according to the Central Directorate of National Savings (CDNS).

This is the second time in the last three months that the government has revised up the rates.

The State Bank of Pakistan (SBP) has increased the key interest rate by 75 basis points altogether since January 2018, taking it to 6.5%.He elaborated that the adjustment in the rate of profit on the saving schemes was due since banks revised up the rate of returns on their saving accounts.

Since the enhanced rate falls in minuscule territory it may not result in any major boost in savings, said an industry source.

The National Saving is meant to inculcate the habit of saving amongst the citizens by offering relatively higher than the market rate of interest, and, in turn, uses the amounts rather sizable amount thus raised as loans for budget and project financing.

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