ISLAMABAD – Pakistani government reduced the profit rate on General Provident Fund (GPF) for fiscal year 2024–25. The new rate has been fixed at 12.46%, after a cut اfrom the previous year’s 13.97%, and even further below the 14.22% offered in 2022–23.
This cut in Provident Fund is said to have direct negative impact on the annual income of government servants who heavily rely on these profits as part of their financial planning. The decision is being seen as a financial setback for civil servants, especially those nearing retirement or planning to withdraw funds for personal needs such as education, health, or home expenses.
Government employees have long depended on GPF as a secure and predictable savings avenue. The annual profit serves not only as a form of passive income but also as a critical financial cushion. With the new reduced rate, employees fear that their savings will grow slower than expected, undermining their long-term financial goals.
Many civil servants have expressed disappointment over the decision, stating that amid rising inflation and increasing living costs, the reduced GPF profit adds further strain to their limited financial resources.
- 2022–23 GPF profit rate: 14.22%
- 2023–24 GPF profit rate: 13.97%
- 2024–25 GPF profit rate: 12.46% (current)
Union leaders and employee associations are calling on the government to reconsider the decision, warning that such measures could demoralize the workforce and impact productivity.
