If the govt. thinks the liquidity will find its way into the economy, it is mistaken.

Soon People will stop investment on NSC and started investment in Commercial Banks. Then Govt itself buy at higher rate from commercial bank. Instead to making beneficial to people of Pakistan they will make beneficial to a few banks of Pakistan. Bravoo

I thought under Islamic laws interest on money is not allowed, and Pakistan follows that for money transactions in Banks.

Profit rate on Defence Saving Certificate was slashed by 2.33 percentage points to 10.68pc while rate of Behbood Saving Certificates and Pensioners’ Benefit Account have been slashed by 2.28pps to 12.48pc. -- Still quite good compared to the rest of the world.

Public to always suffer !!!

Slashing savings rates while sbp discount rate is still high. Isnt it contradictory?

Still the profits are very satisfactory.

Any comforting news from any angle coming from this government????

Hope this will be followed by a drop in the borrowing rates by the State Bank, which indeed is hurting the economy severely on all the fronts.

Another harsh attack on the income of old citizens relying upon their safest investment and meager resources earned on those investments.

Yet another sign of buckling down when it matters most under the pressure of the "big brother."

And now where people have to invest their money, as stocks are now just laughingstock now, it only gets high if government face trouble once dharna ends it will back on downwards trend.

Very good keep the saving center profit down so people can invest in business and pay tax. Profit mark should should not exceed to 5% on all savings in Pakistan.

Good. Money should flow back into the market now, help to create national wealth.

@Uzay Yazdani The rest of the world does not face 20% annual depreciation in currency value.

Senior citizens suffer as income from Behbood is taxed @10% and income on regular income certificate or income from Pakistan investment bond attracts 15% income tax. It is suggested that For Senior citizens the rate of tax should be 5% flat as every day items are expensive in Pakistan including Medicines.

The savings help out in a tough economy & its high rate speeds up economic recovery. Challenges to our economy in the past 14 months are, collapsing real estate market, low growth of industry, agriculture& service sectors, cutting economic output & increasing unemployment. Higher savings reserves mean that consumers have cushions to absorb overwhelming expenses & having a higher portion of income allocated to savings reduces living expenses, bringing adjustment in their budgets, to cope with financial hardship ultimately aiding economic recovery. When a govt. provides stimulus to its citizens, it typically finances those expenses through additional sovereign debt, to be paid off by future generations. The savers are forced to bail out non-savers & widespread savings essentially eliminating the need govt. stimulus to shore up the nation's finances at the consumer level. On both a personal and national level maintaining a solid savings rate is one of the best cures for economic woes.

What about rate of inflation. Has it also reduced. Will there be any real gain on investments for people investing.

What about slash in cost of living expenses for the seniors dependent on medicines, pensioners and widows???

So now the rates are lower than inflation rate.

I thought decreasing profit rates against bahbood certificates tantamount to increase frustration/tension amongst the pensioners/widows whose are facing financial hardship in highly dearness in present government.

This is absolutely wrong dollar 158 ka hogeya inflation is at highest and rupee already devalued and interest rate is peanut who will invest ?

@Uzay Yazdani, the way rupee depreciates.this rate is nothing.rest of the world geta in dollars our there currencies are stable

@Saif Zulfiqar, Can you please elaborate that how profits are satisfactory? At 11 percent inflation (according to government record) profits on most of the schemes are from 6 to 10 percent. So, the profit is even less than the rate at which rupee is losing value