For a Pakistani saver, the choice is between a safe return that barely beats inflation and a riskier one that can beat it by a wide margin. National Savings and bank deposits are safe in rupees, but after tax and inflation several of them leave you about where you started. Shares, funds, property and gold carry more risk and can pay more, or lose money.
This guide compares 10 options on the same terms: how much you need, how the return is set, what tax applies, and how fast you can get your money out. It does not quote rates that change often. For each option it tells you where to check today’s figure.
The 10 options side by side
Tax rates are for 2026-27 and apply to individuals on the FBR Active Taxpayers List (filers). Non-filers pay more on several of them.
| Option | Minimum amount | How the return is set | Risk | Tax (filer) | Withdrawal |
|---|---|---|---|---|---|
| National Savings certificates | Rs 500 (Defence, Special Savings) to Rs 50,000 (Regular Income) | Fixed by CDNS, changes often | Very low | 15% withholding tax, 2.5% zakat where it applies | Any time, some schemes charge a fee or pay no profit if you leave early |
| Bank savings account | Set by the bank | Set by the bank, with a minimum linked to the SBP policy rate for small depositors | Very low | 20% withholding tax on profit | Instant |
| Bank term deposit | Set by the bank | Fixed for the term by the bank, changes with the market | Very low | 20% withholding tax on profit | At maturity, early break usually costs profit |
| Mutual funds | Set by each fund | Market-linked, depends on the fund’s holdings | Low (money market) to high (equity) | 15% capital gains tax on redemption, dividends taxed at 15% to 25% | Redeem through the fund company, check its payout time |
| PSX shares | Price of one share (Sahulat account caps purchases at Rs 3 million) | Market-linked, price changes plus dividends | High | 15% capital gains tax, 15% on dividends in the general case | Sell on any trading day, settles T+1 |
| VPS pension | Set by the fund company | Market-linked, depends on your mix of equity, debt and money market | Low to high, your choice | Income tax credit on contributions, see the VPS guide | Meant for retirement, early withdrawal is allowed but taxed |
| Gold | Whatever a jeweller or dealer will sell | Market-linked price, no income | Medium to high | No withholding rate checked, ask a tax adviser | Sell to a jeweller, with a buying and selling gap |
| Property and REITs | Rs lakhs for property, one unit for a listed REIT | Market-linked, rent plus price change, REIT pays dividends | Medium to high | 1.25% buyer advance tax, 2.75% seller advance tax, 15% on REIT dividends | Slow for property, instant for a listed REIT |
| Naya Pakistan Certificates (overseas Pakistanis) | Set by the bank, check before you invest | Fixed at issue and revised by the SBP, changes often | Very low | Final tax, ask your bank for the rate | Early encashment allowed, no profit in the first three months |
| Government securities (T-bills, PIBs) | Check InvestPak | Set at each auction, market-linked | Very low | 15% withholding tax on profit | Hold to maturity or sell in the secondary market |
| Prize bonds | Rs 100 | No profit, a chance at a prize | No loss of face value, no return | 15% on prizes | Sell or encash through National Savings or the State Bank |
Check inflation first, then the return
Inflation in Pakistan has been high and the figure changes every month. The inflation calculator always shows the latest number from the Pakistan Bureau of Statistics. A return only counts if it beats inflation after tax. The gap is your real return.
Work it out yourself in three lines:
- Take the yearly return the product pays.
- Subtract the tax on that return. For a filer on a National Savings certificate, that is 15% of the profit.
- Subtract inflation. What is left is your real return.
Example only, not current rates: say a certificate pays 12% a year, tax takes 15% of that profit (1.8 points) and inflation is 10%. You keep 10.2% after tax, so your real return is 0.2%. You are level, not richer. A saver in the same position with 8% after tax would lose 2% of buying power each year.
Use today’s rate from the source in each section below and today’s inflation from the calculator, then run the three lines.
National Savings certificates
National Savings is the government’s own scheme and the lowest-risk option on this list. The profit rates are set by the Central Directorate of National Savings (CDNS) and change often. Rates change often, so check the current rate on the National Savings profit rates page before you invest. How each certificate works:
- Behbood Savings Certificate: monthly profit. Only widows, senior citizens and people with disabilities can buy it. No withholding tax applies and it is exempt from zakat. Widowers cannot buy it.
- Regular Income Certificate: monthly profit, five-year term, minimum Rs 50,000. Leaving before four years costs a service charge of 0.5% to 2% depending on when you exit.
- Defence Savings Certificate: a 10-year certificate that pays one lump sum at the end, shown as a percentage of face value for each year held. The percentages are totals, not annual rates. Minimum Rs 500. No profit if you encash before one year.
- Special Savings Certificate: profit paid every six months. Minimum Rs 500. No profit if you encash before six months.
- Short-term Savings Certificate: terms of 3 months, 6 months and 1 year. Minimum Rs 10,000.
- Shuhada’s Family Welfare Account: for families of martyrs only.
- Savings Account: an account with National Savings rather than a certificate.
Profit on schemes other than Behbood is subject to 15% withholding tax for filers and 30% for non-filers. Zakat of 2.5% applies where the scheme is not exempt. Buy at a National Savings centre or through the National Savings Digital app.
Bank savings accounts and term deposits
A bank account is the easiest place to park money you may need soon. The State Bank of Pakistan (SBP) sets a minimum profit rate for savings accounts, linked to its policy rate. From 1 August 2026 that minimum applies to individuals whose average monthly balance is up to Rs 10 million. Term deposits are not covered by it.
The policy rate is decided at the SBP’s monetary policy meetings and can move at each one. When it rises or falls, bank rates follow. Check today’s policy rate on the SBP website and your bank’s own rate sheet. Profit is taxed at 20% for individuals, so a bank account always pays you a fifth less than its headline rate.
Mutual funds
A mutual fund pools money from many investors and a fund manager invests it. SECP’s mutual fund rules sort open-end funds into categories. The three that matter for a beginner are money market funds (short-term government and bank paper, lowest risk), income funds (bonds and sukuk) and equity funds (shares, highest risk and highest long-term potential).
Returns are not promised and change with the market. Each fund publishes its monthly performance in a fund manager report, and MUFAP lists every fund on mufap.com.pk. Tax for filers: 15% capital gains tax when you redeem, and dividends are taxed at 25% on the debt part and 15% on the equity part of the fund’s holdings. NCCPL’s table shows 30% on redemption for non-filers. A monthly SIP calculator shows what a fixed monthly amount could grow to at different return rates.
PSX shares
Buying shares on the Pakistan Stock Exchange makes you a part-owner of a listed company. Prices move every day, so the return is uncertain and losses are possible. For shares bought on or after 1 July 2024, filers pay 15% capital gains tax, and NCCPL shows 30% for non-filers. Dividends in the general case carry 15% tax at source. Trades settle the next working day (T+1) since 9 February 2026.
The step-by-step process, from broker to first order, is in How to Invest in PSX.
VPS pension
The Voluntary Pension System is a private retirement account run by pension fund managers that SECP licenses, which are asset management and life insurance companies. You choose how much goes into equity, debt and money market sub-funds. The attraction is a tax credit on what you contribute, which can cut your income tax for the year if you earn salary or business income. The cost is that the money is meant for retirement. The VPS Rules set the retirement age anywhere from 60 to 70, or 25 years after your first contribution, whichever comes first. You can take money out earlier, but the Income Tax Ordinance taxes early withdrawals. Read the VPS guide for the credit, the limits and the exit rules, and the VPS tax calculator for your own figures.
Gold
Gold has no yield. You make money only if the price rises faster than what you paid, and you lose the buying and selling gap every time you buy from and sell to a jeweller. The rupee price of gold tends to rise when the rupee weakens, because the world price is set in dollars. No withholding tax rate for gold is listed here because none could be confirmed from an FBR document, so ask a tax adviser before large purchases. The price changes daily, so check it with a dealer or a local bullion association on the day you buy.
Property and REITs
Property earns rent and, over time, price gains, but it needs a large lump sum and sells slowly. Finance Act 2026 sets advance tax at 1.25% of the fair market value on the buyer (section 236K) and 2.75% of the sale amount on the seller (section 236C). A Real Estate Investment Trust (REIT) is the smaller route. It owns buildings, trades on the PSX like a share, and pays dividends taxed at 15%. The property versus REIT comparison uses Pakistan’s first listed REIT as the example.
Naya Pakistan Certificates, government securities and prize bonds
Naya Pakistan Certificates are for non-resident Pakistanis, who buy them through a Roshan Digital Account. The rates are fixed when each certificate is issued, depend on the term (3 months up to 5 years), and are revised by the SBP from time to time. Rupee and dollar certificates are both offered. Rates change often, so check the current rates on the HBL Naya Pakistan Certificate page or with your own bank before you invest.
Ask your bank for the tax rate and whether it is a final tax. Early encashment is allowed, but no profit is paid in the first three months.
Individuals can now buy government securities such as Market Treasury Bills and Pakistan Investment Bonds directly. The SBP launched the InvestPak portal on 6 July 2026 so you can open an account online, bid in auctions and trade in the secondary market. Yields are set at each auction by what bidders offer, so they move with the market. Check the latest auction results on InvestPak. Profit is taxed at 15% for individuals.
Prize bonds do not pay profit. The denominations on offer are Rs 100, Rs 200, Rs 750 and Rs 1,500, plus the registered Rs 25,000 and Rs 40,000 premium bonds. The Rs 7,500 and Rs 15,000 bearer bonds, and the Rs 25,000 and Rs 40,000 bearer bonds, were withdrawn by the government in 2024, with the last date to encash them set at 31 December 2024. Prize winnings are taxed at 15% for filers and 30% for non-filers. A bond keeps its face value, but it earns nothing if it never wins, so it fails the inflation test.
How Do You Choose Where to Invest?
Match the money to the time you can leave it. Cash you need within a year belongs in a savings account, a money market fund or a short National Savings certificate. Money for three to five years suits National Savings, income funds or government securities. Money for ten years or more can take some equity risk through shares, an equity fund or VPS.
Spread across more than one option. A certificate that earns nothing real after tax is safe but does not build wealth, and a share portfolio that falls 30% is a poor place for next year’s school fees.
Common questions
What is the safest investment in Pakistan?
National Savings certificates and government securities are backed by the government, so they carry the lowest default risk. They are safe in rupees, not in buying power, because after tax their real return is often close to zero. Run the three-line check above with today’s rate and inflation.
What is the best investment in Pakistan for beginners?
Start with a savings account or National Savings for your emergency fund. Then add a money market or income fund, and a small monthly amount into an equity fund or shares once you are ready for price swings.
Is a bank deposit or National Savings better?
Filers pay 15% tax on National Savings profit against 20% on bank profit, and the rates differ by product and change often. Compare the National Savings rates page with your bank’s rate sheet after tax. A bank gives you instant access, which a certificate does not.
Do I pay more tax if I am not on the filer list?
Yes. National Savings withholding tax is 30% for non-filers against 15% for filers, and prize bond winnings are also taxed at 30%. Check your status on the FBR Active Taxpayers List.
Can I invest in Pakistan from abroad?
Yes. A Roshan Digital Account lets non-resident Pakistanis buy Naya Pakistan Certificates. The stock market route is covered in the PSX guide.