In a notable update for Pakistan’s investment community, the Central Directorate of National Savings (CDNS) has revised the profit rate on Regular Income Certificates (RICs) for March 2025. As reported by ARY News Digital, the new profit rate stands at 11.74%, marking a decrease from the previous figure.
This adjustment translates to a reduced monthly payout for investors, a change officials attribute to Pakistan’s declining inflation rate. For those relying on RICs—launched in 1993 as a five-year investment vehicle to provide steady monthly income—this revision signals shifting economic tides. In this detailed guide, we’ll break down the changes, their impact, and what they mean for current and prospective investors.
What Are Regular Income Certificates (RICs)?
Before diving into the latest updates, let’s explore what RICs are and why they matter. Introduced by the Pakistani government in 1993, Regular Income Certificates are designed to meet the monthly financial needs of the public.
With a five-year maturity period, these certificates offer a dependable income stream, making them a popular choice among retirees, small-scale investors, and those seeking low-risk returns.
RICs are available in a range of denominations to suit various budgets:
- Rs50,000
- Rs100,000
- Rs500,000
- Rs1,000,000
- Rs5,000,000
- Rs10,000,000
The profit is paid out monthly, starting from the date of issuance, providing a consistent cash flow that aligns with everyday expenses or supplemental income goals.
Key Update: Revised Profit Rate for March 2025
The New Rate: 11.74%
The headline news is straightforward: as of March 2025, the profit rate on RICs has been adjusted to 11.74%. This revision, announced by the CDNS, reflects a downward shift from the previous rate, though exact prior figures may vary depending on the timing of earlier adjustments.
Impact on Monthly Income
For investors, this change hits the wallet directly. According to the updated rates:
- On a Rs100,000 investment, the monthly profit payout is now Rs979, down from Rs990.
- That’s a reduction of Rs11 per month per Rs100,000 invested—a modest but noticeable dip for those with larger holdings.
For example:
- An investor with Rs500,000 in RICs will now earn Rs4,895 monthly (previously Rs4,950).
- For Rs1,000,000, the payout drops to Rs9,790 from Rs9,900.
While the difference per unit may seem small, it compounds across larger investments or for those heavily reliant on this income.
Why the Change? Declining Inflation
National Savings officials have tied this adjustment to broader economic trends, specifically citing Pakistan’s declining inflation rate. Lower inflation often reduces the pressure on savings instruments to offer high returns, as the cost of living stabilizes.
This marks the third revision in less than three months, highlighting a period of active recalibration by the CDNS to align RIC rates with macroeconomic conditions.
A Closer Look: Frequent Rate Revisions
The March 2025 adjustment isn’t an isolated event. The National Savings authority has been unusually active, revising RIC profit rates three times in under three months. This frequency suggests either heightened volatility in Pakistan’s economic landscape or a proactive stance by policymakers to fine-tune investment returns.
For context:
- Inflation in Pakistan has historically influenced savings rates, with higher rates offered during inflationary spikes to protect investors’ purchasing power.
- The recent downward trend in inflation signals a cooling economy, prompting these successive cuts.
Investors may wonder: Is this a sign of stability or uncertainty? While declining inflation is generally positive, frequent rate changes can make long-term planning trickier for those dependent on fixed-income instruments like RICs.
Looking ahead, the frequent rate tweaks suggest investors should stay informed. Whether you’re a current holder or considering RICs, this update is a reminder: economic conditions shift, and so do returns. For the latest on National Savings offerings, keep an eye on official announcements—or bookmark this page for future updates.
