The government has heavily slashed the rates of profit on national savings certificates and schemes by up to 150 basis points (bps), reported 24NewsHD TV channel.

The decision came after the State Bank of Pakistan (SBP) announced one percent drop in the interest rate to 19.50 percent.

The profit rates were decreased on Sarwa Islamic Savings Accounts (SISA), Savings Account (SA) and Short Term Savings Certificates (STSC).

The rate of return on SA has decreased by 150 bps to 19 percent, while the rate of return on STSC has been slashed by 134 bps to 17.9 percent.

The profit rate on SISA is down by 150 bps at 19 percent.

The profit rates on remaining savings schemes were unchanged.

Reporter Ashraf Khan