KARACHI – The State Bank of Pakistan (SBP) has revised its policy on minimum profit rates for savings deposits, restricting the requirement to deposits of natural persons (individuals) with monthly average balances of up to Rs10 million.
The central bank, in a circular, said the decision follows the launch of its digital investment platform “InvestPak,” which enables retail and corporate investors to directly invest their savings in government securities through a convenient, efficient, and secure digital channel.
The central bank said institutional and sophisticated investors can now use InvestPak to invest in government securities and earn competitive returns.
In view of this facility, the minimum profit rate requirement mentioned in previous instructions will only apply to eligible individual depositors maintaining monthly average balances up to Rs10 million.
The SBP said the measures are aimed at broadening the investor base for government securities while ensuring competitive returns for investors.
The new instructions will come into effect from August 1, 2026, while all other existing instructions on the matter will remain unchanged.
Easy Examples to Understand Minimum Profit Rate Rue
Example 1: Individual with Rs5 million savings
Ahmed has Rs5 million in his savings account.
Since his balance is below Rs10 million, the bank must continue to follow the SBP’s minimum profit rate requirement.
Ahmed will remain protected by the minimum profit rate rule.
Example 2: Individual with Rs15 million savings
Sara has Rs15 million in her savings account.
Since her balance is above Rs10 million, the minimum profit rate requirement will not apply to her entire deposit.
She may receive a profit rate based on the bank’s own terms or may consider investing through other options like government securities.
Example 3: Company with Rs100 million deposit
A company keeps Rs100 million in a bank account.
Since companies are not covered under the “natural persons” category, the minimum profit rate requirement will no longer apply.
The company can use platforms like InvestPak to directly invest in government securities if it wants potentially better returns.
