Punjab General Provident Investment Fund Act, 2009
(Act V of 2009)
[8 July 2009]
An Act to provide for the establishment of the
General Provident Investment Fund to generate
for the discharge of the liabilities of the
General Provident Fund
Preamble.– Whereas it is expedient to
establish the Punjab General Provident Investment Fund to generate revenue
for the discharge of the General Provident Fund liabilities of the
Government and to make provisions for ancillary matters.
It is enacted as follows:---
1. Short title, extent and commencement.–
(1) This Act may be cited as the Punjab General Provident Investment Fund
(2) It extends to the whole of the
(3) It shall come into force at once.
2. Definitions.– In this Act,---
(a) “family” means a spouse, a
parent, a grand parent, sibling or adopted sibling, child or an adopted
child, or a maternal or paternal first cousin; or a parent, sibling or
adopted sibling, child or an adopted child, or a maternal or paternal first
cousin of the spouse;
(b) “financial year” means the year
starting from first day of July and ending on 30th day of June of the
(c) “Fund” means the Punjab General
Provident Investment Fund established under the Act;
(d) “General Manager” means the
General Manager of the Fund;
(e) “General Provident Fund” means
the General Provident Fund established under the Punjab Civil Servants Act,
1974 (VIII of 1974) and the Punjab General Provident Fund Rules, 1978;
(f) “Government” means the
Government of the Punjab;
(g) “Government bonds” include the
bonds issued by or under the authority of the Federal Government, a
Provincial Government or by a body or entity owned or controlled by the
Government, a Provincial Government or the Federal Government or a
prescribed body or entity;
(h) “Management Committee” means the
General Provident Investment Fund Management Committee;
(i) “Member” means a Member of the
(j) “prescribed” means prescribed
by the rules made under the Act;
(k) “Province” means the Province of
(l) “regulations” means the
regulations framed under the Act;
(m) “Reserve Fund” means the Reserve
General Provident Fund created under section 3 of the Act;
(n) “rules” means the rules made
under the Act; and
(o) “sub-committee” means a
sub-committee of the Management Committee.
Reserve Fund and Punjab General Provident
3. Reserve Fund.– (1) The Government shall,
by notification, create a Reserve General Provident Fund in the Public
Account of the Province.
(2) The amounts placed in the Reserve
Fund by the Government shall form part of the Public Account of the Province
as defined in Article 118(2) of the Constitution of Islamic Republic of
4. Punjab General Provident Investment
Fund.– (1) The Government shall, by notification, establish the Punjab
General Provident Investment Fund.
(2) The Fund shall be a body corporate
with perpetual succession, common seal, power to enter into contract and may
sue or be sued by the said name.
(3) The Fund shall perform such
functions and exercise such powers with regard to the Reserve Fund as vested
in it under this Act or the rules.
5. Management Committee.– (1) The Management
Committee of the Punjab Pension Fund established under the Punjab Pension
Fund Act, 2007 (I of 2007) shall perform functions and exercise powers as
the Management Committee of the Fund.
(2) In the performance of functions or
exercise of powers under this Act, the Management Committee shall be known
as the General Provident Investment Fund Management Committee.
(3) The management and administration
of the Fund shall vest in the Management Committee.
(4) Subject to the provisions of this
Act and the rules, in the performance of its functions and in exercise of
its powers, the Management Committee shall act and be bound by the
directions of the Government.
6. General Manager.– The General Manager of
the Punjab Pension Fund appointed under section 8 of the Punjab Pension Fund
Act, 2007 (I of 2007) shall act as the General Manager of the Fund.
Powers and Functions of the Management
7. Powers and functions of the Management
Committee.– (1) The Management Committee shall,---
(a) formulate investment policy,
establish standards and procedures for the investment of the assets of the
(b) invest an amount from the Reserve
(c) transfer the profit generated
through the investment to the Reserve Fund;
(d) prepare an annual report for
submission to the Government detailing the performance of the Fund; and
(e) perform such other functions as may
be assigned to it under the rules or which are ancillary to the above
(2) The Management Committee may,---
(a) initiate proposals for making
or amendment of the rules;
(b) employ a person as may be
necessary for the purposes of this Act;
(c) create a sub-committee from
amongst its Members to make recommendations on an issue;
(d) borrow on behalf of and in the
name of the Fund;
(e) incur liability on behalf of
(f) enter into a contract; and
(g) exercise such other powers as
may be conferred on it under the rules or which are incidental to the above
8. Delegation of powers and functions.– (1)
Subject to sub-section (2), the Management Committee may delegate to the
General Manager, a sub-committee or a Member any of its powers or functions.
(2) The Management Committee shall not
delegate the power or function to,---
(a) frame, amend or repeal
(b) approve the investment
policy, standards and procedures for the operation of the Fund; or
(c) fill a vacancy in a
9. Limitations on the investment.–
Notwithstanding anything contained in section 7 or any other law for the
time being in force, no investment in a financial year shall be made by the
Management Committee from the Fund,---
(a) for a fixed period of more than
three years except with the prior approval of the Government;
(b) in a foreign market or an entity
registered outside Pakistan, except with the prior approval of the
(c) for an amount of more than
twenty-five percent of the Reserve Fund in one financial institution
(d) for an amount more than
seventy-five percent of the Reserve Fund in the Government bonds;
(e) for an amount of more than five
percent of the Reserve Fund in an issue of corporate or other bonds or short
term financial instruments, cumulatively;
(f) for an amount of more than five
percent of the Reserve Fund in a unit trust authorised for sale in Pakistan;
(g) in an asset or a security
prohibited by the rules.
Budget, Expenses and Audit
10. Budget and accounts.– (1) The General
Manager shall prepare the budget of the Fund for a financial year.
(2) The General Manager shall place the
budget proposals for approval before the Management Committee at least
thirty days prior to the commencement of a financial year.
(3) The accounts of the Fund shall be
maintained in such manner as may be prescribed.
11. Expenses.– The expenses incurred on the
operation of the Fund, including expenses relating to the functioning of the
Management Committee, shall be paid out of the Fund in the manner as may be
12. Audit.– (1) The Government shall appoint a
firm of chartered accountants for the annual audit of the accounts of the
(2) Annual audit report of the accounts
of the Fund and the Reserve Fund shall be laid before the Management
Committee for approval.
13. Public servant.– All persons acting or
purporting to act in pursuance of any provision of this Act, shall be deemed
to be public servants within the meaning of section 21 of the Pakistan Penal
Code, 1860 (XLV of 1860).
14. Prohibition of insider trading.– The
provisions of Chapter III-A of the Securities and Exchange Ordinance, 1969
(XVII of 1969) or any other law for the time being in force on the subject
shall, mutatis mutandis, apply to the Members, employees, or any other
person associated with the Fund.
15. Liability of the Government.–
Notwithstanding anything contained in this Act, right to payment of benefits
from membership of the General Provident Fund of a person shall not be
restricted, extinguished, annulled or varied and the Government shall not be
absolved from its liabilities with respect to the payment of such benefits.
16. Conflict of interest.– (1) No Member shall
directly or indirectly receive any profit from his position as a Member
except the reasonable expenses incurred by him in the performance of his
(2) The pecuniary interest of family or
close personal or business associates of a Member shall be considered as the
pecuniary interest of the Member.
(3) A Member shall be in conflict of
interest if he,---
(a) is an employee, or a paid
consultant of a business entity that has, or of a trade association of
business entities that have, a substantial interest in the management of the
(b) owns, controls, or has,
directly or indirectly, more than ten percent interest in a business entity
that has a substantial interest in the management of the Fund;
(c) receives more than
twenty-five percent of his individual income from a business entity that has
a substantial interest in management of the Fund;
(d) not being an ex-officio
Member, is in employment of any government in Pakistan, or a body managed or
controlled by the government, except as a teacher or academician in an
institute of higher learning; and
(e) or one or more members of his
family, business partners or close personal associates, may benefit either
directly or indirectly, financially or otherwise, from his position on the
(4) A Member shall disclose a
potential, real or perceived conflict of interest as soon as he becomes
aware of the potential conflict and before the Management Committee or a
sub-committee takes cognizance of the matter.
(5) If a Member is not certain about
the conflict of interest situation, he shall bring the matter before the
Management Committee for advice.
(6) The decision of the Management
Committee on conflict of interest shall be final.
(7) A Member shall not take part in the
proceedings of the Management Committee in which any question of his
conflict of interest is on the agenda.
(8) The disclosure of conflict of
interest and the decision of the Management Committee shall be recorded in
the minutes of the meeting.
17. Submission of annual report before the
Assembly.– The Government shall, within six months of the end of a financial
year, submit an annual report of the Fund in the Provincial Assembly of the
18. Rules.– The Government may, by
notification, make rules for carrying out the purposes of this Act.
19. Regulations.– Subject to the provisions of
this Act and the rules, the Management Committee may, by notification in the
official Gazette, frame regulations to give effect to the provisions of this