ISLAMABAD: The government has increased profit rates on several national savings schemes, including those for pensioners, senior citizens and families of martyrs, with the revised rates taking effect from October 21.

According to the revised schedule issued by the Central Directorate of National Savings (CDNS), the profit rate on Behbood Savings Certificates, Pensioners’ Benefit Accounts and Shuhada’s Family Welfare Accounts has been raised to 12.96 per cent from 12.72pc.

The increase will raise the monthly profit on an investment of Rs100,000 under these schemes to Rs1,080 from Rs1,060.

Similarly, the profit rate on Regular Income Certificates has been increased to 12.12pc from 11.76pc. The revised rate will provide a monthly return of Rs1,010 on an investment of Rs100,000, compared with Rs980 previously.

The profit rate on Special Savings Certificates has been increased to 12pc from 11.6pc for the first five profit payments. Under the revised schedule, investors will receive Rs6,000 on an investment of Rs100,000 every six months, while the sixth and final profit payment will be Rs6,400 at a rate of 12.8pc.

The government has also raised cumulative profit rates on Defence Savings Certificates across different maturity periods. For six-year certificates, the cumulative return has increased to 88pc from 86pc, while the seven-year return has risen to 113pc from 109pc.

Similarly, the eight-year return has increased to 142pc from 136pc, while the nine-year return has been raised to 176pc from 168pc. The cumulative return on certificates held for 10 years has increased to 215pc from 205pc.

Profit rates on Short Term Savings Certificates have also been revised upwards. The rate on three-month certificates has increased to 11.12pc from 10.80pc, while the revised schedule provides rates of up to 11.72pc for longer maturities.

The government has also increased returns on Sharia-compliant savings schemes. Profit rates on Sarwa Islamic Term Accounts now range between 11.84pc and 12.12pc for different maturities, while the rate on Sarwa Islamic Savings Accounts has been raised to 11.84pc from 11.33pc.

However, the profit rate on ordinary Savings Accounts has been maintained at 10pc per annum.

According to the official schedule, profits on national savings schemes are subject to withholding tax at 15pc for filers and 30pc for non-filers, while Zakat deductions apply where prescribed under the relevant rules.

ISLAMABAD: The International Monetary Fund (IMF) has called for Pakistan’s fiscal policy to go beyond achieving primary balance targets and protecting debt sustainability by reinforcing policy credibility, fostering economic recovery and creating space for public investment and social spending to support stronger long-term growth.

Speaking at a workshop on “Reforms for a Modern and Growth-Friendly Tax System in Pakistan”, IMF Middle East and Central Asia Department Director Jihad Azour said tax refo­rm was critical to Pak­is­tan’s economic growth agenda and rema­ined central to the objectives of the Extended Fund Facility (EFF).

The workshop was organised by the Ministry of Finance and Revenue in collaboration with the IMF. Finance Minister Muha­mmad Aurangzeb also spoke at the workshop, highlighting achiev­ements over the past two years.

Mr Azour said Pakistan had made important progress towards restoring macroeconomic stability, rebuilding confidence, strengthening external buffers and supporting a gradual economic recovery despite an era of shocks and uncertainty.

Jihad Azour calls for broader, more predictable tax system

The IMF official said Pakistan’s recent stabilisation gains had created an opportunity that needed to be strengthened through transformative reforms, with tax reform at the heart of the process. “A stronger, broader, fairer and more predictable tax system can support fiscal sustainability while reducing distortions that hold back investment, productivity, growth and formal job creation,” he remarked.

He said broadening the tax base, strengthening revenue administration, reducing tax expenditures, protecting priority spending and improving public service provision were Pakistan’s priorities.

He credited Pakistan for the progress made. However, he said the next milestone was to turn stabilisation into stronger and more durable growth by moving beyond cycles of adjustment towa­r­ds a more competitive, inv­e­s­tment-friendly and inclusive economy.

Mr Azour said the IMF remained committed to supporting the authorities in building an economy capable of delivering hig­her productivity, led by a stronger private sector, and creating better opportunities for younger generations.

He warned that the highly uncertain external environment had made these objectives more urgent. Fiscal policy, he said, must do more than achieve primary balance targets and protect debt sustainability. It must reinforce policy credibility, foster recovery and create space for public investment and social spending needed to support long-term growth and public welfare.

Outlining four themes for discussion during the two-day workshop, Mr Azour identified credibility, growth, fairness and implementation as central to the reform process.

Published in Dawn, October 21st, 2026