Resolution Rate of Profit 2022-23 on Balances and Deposits

Government of Pakistan Finance Division issued a Notification on 19-07-2023 in connection with the Resolution Rate of Profit 2022-23 on Balances and Deposits GP Fund and Similar. The details are as under:

Resolution Rate of Profit 2022-23 on Balances and Deposits GP Fund /CP Fund

Government of Pakistan Finance Division issues a notification on 19th July 2023. The notification is about declaring the rate of profit applicable to the subscriptions and the balance in the various provident funds. The rate is applicable for the financial year beginning on the 1^st of July 2023 at 14.22% per annum.

Types of Funds

These funds include:

The General Provident Fund (G.P.F)
The Contributory Provident Fund (C.P.F)

All government employees of public departments can avail of the lump sum amount of these funds on retirement. As government Fix is the old rate of 12.40% per annum. But now t fixes a new rate of profit on the deposit of GP funds at 14.22% per annum. Retirees can enjoy more profit on these similar funds.

General Instruction of Ministries to Implement New Rates of Profits on GP/CP Funds

Ministries of Railways and Defence will issue the instructions which are necessary regarding the rate of profit. As Both Ministries control various provident funds. This rate is applicable to the balances in various provident funds. The resolution in connection with it publishes in the Gazette of Pakistan on the order of the Government of Pakistan Finance Division.

Request for Resolution for Revised Rate for GP Fund Subscribers

The finance division requests the Ministry of Railways and the Ministry of Defence to provide resolutions on the rate of profit on different Funds similar to the GP Fund. The balances of Subscribers’ deposit of GP- Fund and at the credit of subscription to the GP-Fund and other similar funds for the year 2021-2022. Finance Department fixes this rate @12.40% as per the notification issued on 17^th February 2023. But Government revises this rate and the new rate is 14.22% per annum. The new rate is applicable with effect from 1^st, July 2023.