What Sarwa is
Sarwa is the name National Savings uses for its Islamic product line. National Savings is run by the Central Directorate of National Savings (CDNS), a government body under the Ministry of Finance. The line has two main products:
- Sarwa Islamic Savings Account: a running account for money you may need to add or withdraw.
- Sarwa Islamic Term Account: money placed for a fixed tenure, with profit paid on a set schedule.
When people search for "islamic national savings", these are usually the products they mean. Conventional CDNS products are covered on our National Savings schemes page.
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Shariah structure: profit instead of interest
A conventional deposit pays interest, a fixed return on a loan regardless of how the money is used. Islamic finance treats that as riba, which it prohibits. Islamic savings products replace the loan with a contract where your money is invested in Shariah-compliant assets and you receive a share of the profit.
Common contracts in Islamic savings include:
| Contract | How it works in short |
|---|---|
| Mudarabah | You provide capital, the manager provides work. Profit is shared at an agreed ratio. Losses fall on the capital provider. |
| Wakalah | The manager invests your money as an agent for a fee. Profit above the expected level may go to you or the agent, as the contract says. |
| Musharakah | Both parties put in capital and share profit and loss. |
CDNS publishes which contract Sarwa uses, what the pool of funds is invested in, and which Shariah board or advisor approved it. Read these documents at a National Savings centre or on the official CDNS website, not on third-party pages. Because the structure decides who bears loss and how profit is calculated, this detail matters more than the product name. For background, see Islamic finance.
Sarwa profit rate: how it is set and where to check it
Under Islamic contracts, the rate you see is usually an expected or indicative profit rate. The final return depends on what the underlying pool actually earns. Government-backed products set this rate centrally. CDNS revises it from time to time through official notifications.
Rates on government savings in Pakistan tend to move with the wider rate environment set by the State Bank of Pakistan. The latest SBP decision on record is: SBP policy rate raised by 50 bps to 12% with effect from 27.10.2026 (MPC). This tells you the direction of rates in general. It is not a Sarwa rate. More on this on SBP rates and economy.
To find the current Sarwa profit rate:
- Open the profit rates section of the official CDNS website, or ask at a National Savings centre.
- Check the date of the notification, so you are not relying on an old rate.
- Note whether the rate applies to new investments only or also to existing ones.
- Note how often profit is paid and whether the term account rate differs by tenure.
You can estimate returns once you have the current rate with our profit calculator.
Savings account vs term account
| Point | Sarwa Islamic Savings Account | Sarwa Islamic Term Account |
|---|---|---|
| Purpose | Flexible balance | Money set aside for a fixed tenure |
| Access to money | Deposits and withdrawals allowed under CDNS rules | Early encashment may reduce or remove profit, so check the rules |
| Profit | Paid on the balance as per CDNS rules | Paid on a fixed schedule for the chosen tenure |
| What to confirm | Minimum balance, profit calculation method | Available tenures, payout frequency, early exit terms |
We do not list minimum amounts, tenures or limits here. They change and must come from the current CDNS terms.
Tax, zakat and documents
Profit on National Savings products is generally subject to withholding tax. The rate can differ for filers and non-filers on the FBR Active Taxpayer List. Confirm the current rate with FBR or CDNS before you calculate your net return. Zakat deduction rules and how to submit an exemption declaration should also be checked at the centre. Our Payments, tax, Islamic banking page has the general picture.
To open an account you will normally need your CNIC and the CDNS application form. Ask the centre for the full and current list of documents.
How Sarwa compares with other options
- Bank Islamic deposits work in a similar way but are offered by banks. See Bank deposits and Deposit Protection (DPC).
- Islamic mutual funds can return more or less than a savings account. Their value can fall. See Mutual funds.
- Government securities such as Sukuk are covered under T-bills and PIBs.
Sarwa is a savings product, not trading. Leveraged forex or CFD trading carries a much higher risk, and you can lose money fast. It is a different activity from saving. Pakistan's rules on it are explained under Law and regulators.
Frequently asked questions
Is the Sarwa Islamic Savings Account Shariah-compliant?
CDNS offers it as an Islamic product approved by its Shariah advisory arrangement. You can read the contract type and approval details in the official CDNS documents.
Is the Sarwa profit rate fixed?
It is usually an expected rate that CDNS revises through notifications. Check the latest notification and its date on the official CDNS website.
What is the difference between Sarwa savings and Sarwa term accounts?
The savings account is for flexible balances. The term account holds money for a fixed tenure with scheduled profit. Early exit from a term account may affect profit.
Is profit on Sarwa taxable?
Withholding tax generally applies to National Savings profit, and filer status can change the rate. Confirm current rates with FBR or CDNS.
Where can I open a Sarwa account?
At National Savings centres, or through any official digital channel CDNS announces. Use only official CDNS channels.