For decades, national retail investors in Pakistan—especially retirees, widows, and senior citizens—have heavily relied on National Savings (Qaumi Bachat) schemes. The financial products, such as the Behbood Savings Certificates (BSC) and Mahana Amdani Accounts have been a lifeline for many people, providing regular monthly returns in the form of profits that are backed by the government. As long as macroeconomic signals change, however, and the State Bank of Pakistan (SBP) reduces its policy rate, the returns on National Savings will come under strain. These rate reductions, when the economy is still grappling with inflation, can be a major blow to the budget of people on fixed monthly incomes.
When conventional savings rates plummet, leaving all your capital in a declining asset is rarely the best strategy. Fortunately, Pakistan’s evolving financial ecosystem offers robust alternatives that balance capital preservation with competitive returns. If you are searching for alternative safe places to put your savings, here are four highly secure, regulated financial avenues to consider.
1. Money Market Mutual Funds
When sovereign certificates experience downward adjustments, Asset Management Companies (AMCs) offer an exceptionally flexible alternative through Money Market Mutual Funds.
- How They Work: The money in these open-ended funds is collected from thousands of retail investors and put into low-risk investments like short-term Government Treasury Bills (T-Bills) and high-rated commercial bank deposits.
- Money Market Funds (e.g. Al Meezan Investments, UBL Funds) are kept at a low-risk level and regulated by the Securities and Exchange Commission of Pakistan (SECP).
- The major advantage of mutual funds over National savings is that the former doesn’t impose any penalties for withdrawing money early or locking it up for years.
2. Islamic Mahana Munafa Accounts at Commercial Banks
Pakistan’s leading commercial scheduled banks present attractive Shariah-compliant monthly profit accounts that can step in as a steady replacement for Mahana Amdani schemes.
- Regulatory Security: Every scheduled commercial bank operating under the SBP is legally backed by the Deposit Protection Corporation (DPC). This guarantees statutory protection for depositors’ funds up to a specific limit per bank, providing legal peace of mind.
- Top Options: Premium banking institutions like Meezan Bank (Meezan Mahana Munafa Plan), Bank Alfalah, and Bankislami offer highly structured certificates.
- Rate-Locking Benefit: If you anticipate that economic profit rates will drop even lower in the future, you can open a fixed-term deposit for 1, 3, or 5 years. This allows you to lock in a higher profit rate before the market falls further.
3. Government of Pakistan (GoP) Ijarah Sukuk and T-Bills
If your primary objective is to maintain the exact 100% risk-free, sovereign guarantee that National Savings offers, you can buy government securities directly.
- Sovereign Guarantee: Treasury Bills (T-Bills) and Pakistan Investment Bonds (PIBs) are issued directly by the Government of Pakistan. Because they are backed by the state, the risk of default is practically zero.
- The Shariah-Compliant Route: For individuals strictly avoiding interest (Riba), the government issues GoP Ijarah Sukuks.
- Accessibility: Historically, these were only accessible to ultra-wealthy individuals or corporate entities. Today, ordinary citizens can easily buy capital-protected GoP Ijarah Sukuks through the Pakistan Stock Exchange (PSX) or primary bank accounts with very low minimum investment thresholds.
4. High-Yield Term Deposits at Microfinance Banks
Retail liquidity is a common feature of microfinance banks (MFBs) that they regularly pay higher rates of return than commercial banks in order to entice such funds into their system.
In many instances, well-established MFBs, such as Mobilink Microfinance Bank, Telenor Microfinance Bank and Khushhali Microfinance Bank provide term deposit certificates with rates that beat falling Behbood rates.
State Bank Supervision: These banks work under strict rules and regulations imposed by the State Bank of Pakistan for microfinance banks.
Precautionary Tip: While protected under banking safety frameworks, microfinance institutions inherently carry a slightly higher risk profile than massive public-sector banks. Therefore, always choose MFBs boasting a stable “A” or higher credit rating from PACRA or VIS.
The Power of Capital Diversification
Financial advisors universally warn against putting all your financial eggs in one basket. If your Behbood or Mahana Amdani profit rates drop, the wisest strategy is diversification. Instead of moving your entire life savings into a single alternative, distribute it across these platforms. For instance, split your capital: place 40% into high-liquidity Money Market Funds for emergencies, lock 40% into a secure 3-year Islamic Bank term deposit, and invest the remaining 20% in GoP Ijarah Sukuks to enjoy tax-efficient sovereign yields.
