The federal government has reduced the annual rate of return on General Provident (GP) Fund deposits for the financial year 2024-25, reported 24NewsHD TV channel Friday.
According to a notification issued by the Ministry of Finance, the mark-up rate has been fixed at 12.46 percent, down from 13.97 percent in the previous fiscal year (2023-24).
The move marks a continued downward trend in returns on provident funds, as the rate stood at 14.22 percent in 2022-23.
The revised rate will affect millions of government employees who rely on the GP Fund as a long-term savings instrument. The reduction comes amid broader adjustments in fiscal policy, possibly linked to changing economic conditions and monetary policy directions.