Government of Khyber Pakhtunkhawa, Finance Department issued a Notification on 19-08-2022 in connection with General Provident Fund Interest Rates 2022 KPK.  This GP Fund Interest Rates 2021-22 KPK is effective from 1^st July 2021 to 30^th June 2022.

General Provident Fund Interest Rates 2022 KPK

I am directed to refer to the Finance Division Government of Pakistan letter No.F.8(1)GS-I/2018-628 dated 16.08.2022 on the subject noted above and to convey the following rates of markup on the State Provident Fund (G.P Fund) fixed by the Federal Government for the fiscal years indicated against each, for its adoption and further necessary action:-

The KP Government adopted the same rates of Mark-up as GP Fund Interest Rates 2021-22 Federal Government. Punjab Government also followed the Federal Government as per the previous routine.

Effect of GP Fund Mark Rates 2021-22 on Advances

The new rates though look charming for the employees having an interest in their General Provident Fund. However, it will affect badly their interest in advances that the employees got during 2021-2022. If the Government would fix the rates as previously, the employees had to pay interest @ 7.9%. As now the Government fixed rates of interest on GP Fund @ 12.40% so the employees would have to pay interest @ 14.4%. Let’s explain the same situation with an example.

Examples of Interest with Different Rates

If the Interest Rate = 6.7%

Total Interest = 17029/- on a total amount of 100,000/- as Motorcycle advance

If the interest rate is 12.40

Then the total interest = 31516/- on a total amount of Rs. 100,000/- only.

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