The Finance Division Budget Wing Notification of the rate of mark-up on state provident fund i.e General Provident Fund has attracted a lot of people because of the low rate of mark-up on the funds. According to the notification, the mark-up rate is kept at 07-90%, which is a lot lesser than that of the past. And, this rate will be applicable from 01st July 2020. Government of Pakistan Finance Division issues notification of GPF Interest Rate 2020 21 & rate of mark-up on state provident fund that is General Provident Fund for the Fiscal Year 2020-2021. The current fiscal year rate has been amended for State Provident Fund while announcing the monthly mark-up rate of on General Provident Fund for the Fiscal Year 2020-2021. And with this, the minimum mark-up for General Provident Fund for the year 2020-2021 has been set at 07-90% from a previous mark-up of 12.00%.
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Rate of Mark Up
This move was taken to give the general provident fund beneficiary a higher mark-up rate in consideration of the increasing inflation rate. In the notification, the rate of mark-up on state provident fund, i.e General Provident Fund for the Fiscal Year 2020-2021 is mentioned. The rate of mark-up on the state provident fund is set as per the notification. The Section officer is pleased to announce the new rate of mark-up on GP Fund for Fiscal Year 2020-2021. It is a 5% decrease over the previous year. The Government of Pakistan, Finance Division in its wisdom has decided to fix the GP fund at 07.90%. One might ask why we need so much money when the budget of the country is already stretched to its limits. The answer lies in the size of the bureaucracy which is ever-expanding.
The government has had to create more bureaucracy because of the needs of the country and the demands of an ever-changing world. As of the beginning of the fiscal year 2020-2021, the GP rate of mark-up on the GP Fund will be at 07.90%. This is a 07.90% decrease from the previous fiscal year which is a result of the increased cost of imports. The higher cost of imports as a result of a fluctuating exchange rate. In the previous fiscal year, it is estimated that the GP Fund had an annual deficit of PKR. In the fiscal year 2020-2021, it is predicted that the annual deficit will be PKR. Overall, the new rate of mark-up on the GP Fund will not have a significant impact on the average Pakistani citizen.
Notification of Rate of Mark Up – GPF Interest Rate 2020 21
Finance Division Government of Pakistan has announced to introduce mark-up on GP Fund for the Fiscal Year 2020-2021. The Finance Division has further clarified that the amount of mark-up would be optimized with the result that Pakistanis would be able to purchase GP Fund. Mark-up would be applied on GP Fund trading with an aim to enhance the availability of stocks. This mark-up is not applicable to retail customers who buy GP Fund from the bank branch. The Mark-up is to be applied on all transactions of the GP Fund. The rate of Mark-up is as given below.