ISLAMABAD – Federal government slashed General Provident Fund (GPF) profit rate to a shocking 12.46% for fiscal year 2024–25. cut from 13.97pc last year.
The decision sent shockwaves through government workers nationwide, leaving employees feeling betrayed, furious, and financially cornered.
For hundreds of thousands of civil servants, GPF isn’t just a savings scheme, it’s important amid meagre salaries, and soaring costs of everything from food to fuel.
As ordinary Pakistanis grapple with fuel price hikes, rising utility bills, and an unrelenting cost of living crisis, the government’s move to slash GPF profits has been slammed as tone-deaf. With pressure mounting and protests brewing, all eyes are now locked on Islamabad.
General Provident Fund Update
Over past three fiscal years, General Provident Fund (GPF) profit rate in Pakistan has seen a steady decline, raising concerns among government employees.
In 2022–23, GPF profit rate stood at 14.22%, offering relatively strong returns amid rising inflation. It was reduced to 13.97% in 2023–24. The most significant drop came in the current fiscal year, 2024–25, where the rate has been slashed to just 12.46%.
This consistent downward trend sparked frustration and alarm within public, as many civil servants depend on these returns to manage essential expenses, plan for retirement, and protect themselves against economic uncertainty.
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