The government has introduced four Sharia-compliant National Savings products, launched on July 1. The National Savings Organisation (NSO), a subsidiary of the Ministry of Finance, will officially unveil the Sarwa Islamic Savings Products to the public.
These products include Sarwa Islamic Term Accounts (SITA) for one, three, and five years, as well as a running savings account. Investors can avail the one-year SITA with a return rate of 20.80%, followed by 18% for three years and 12.84% for five years.
The Sarwa Islamic Saving Account (SISA), a running account, will offer a return of 19.50%. The products will be scriptless, and the profits will be deposited directly into the investors’ bank accounts or National Savings Accounts through Raast accounts.
To enhance customer convenience, the National Savings will soon launch an NSS mobile application, allowing account holders to stay updated on their accounts. The products will also be operable through debit cards and automated teller machines (ATMs).
The Finance Minister highlighted the government’s efforts in expanding the Islamic banking system, which now accounts for 21% of total banking operations in the country. He mentioned the establishment of a Sharia-compliant bank and the conversion of two commercial banks to Islamic banking operations, reflecting the population’s inclination towards interest-free financial systems.
The government, with its commitment to a smooth transition to a Sharia-compliant economy, withdrew appeals filed by the State Bank of Pakistan and National Bank of Pakistan against the Federal Shariat Court’s judgment.
The court had ordered the end of interest-based financing and the conversion of the conventional system to a Sharia-compliant financial system within five years.