Government of Pakistan, Finance Division (Budget Wing) has issued Notification on 23-07-2019 in connection with Markup Rates GP Fund 2018-19.
According to the Notification, there has been increased the Interest Rate GP Fund or markup rates of GP Fund for the year 2018-19. During previous year the Interest Rate on GP Fund was 11.70 but now these have been fixed 14.35.
Benefit of Markup Rates GP Fund 2018-19
There will be a greater benefit to the employees as the rates have been increased to a much better point. Some people calculate that if they had actual amount Rs. 100,000/- then after one year their interest will be as under = 100,000 x 14.35/100= 14350/- (Wrong Calculation). Actually Interest Rate on GP Fund is on monthly basis. Example is given below:
Suppose you have 90,000 balance on 1st August then the interest will be on this month and in the same way interest will be on the balance on each month GP Fund (if correction needed in this please mention the mistake in comments so that the mistake may be removed. I have already published a Proper Calculation of GP Fund Interest Amount. You can get the benefit from it.
Loss of Interest Rates GP Fund 2018-19
There is also loss of these huge rates but only for those who have withdrawn motorcar or Motor Cycle Advance during 2018-19. They have to pay much amount of interest due to this increase in GP Fund Interest 2018-19.
Special thanks to:
Mr. Zahid Khan
Mr. Liaquat Ali Kamboh
Mr. Mushtaq Malik
Mr. Barkat Ali Larik
Mr. Rahmat Ullah
Mr. Talha Siddiqui
Mr. Mujeeb Sial
Mr. Mehran Qadir