Punjab General Provident Investment Fund Ordinance, 2007
(Pb Ord XXIV of 2007)
[11 December 2007]
An Ordinance to provide for the
establishment of the Punjab General Provident Investment Fund to generate
revenue for the discharge of the liabilities of the General Provident Fund;
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;
whereas the Provincial Assembly of the Punjab is not in session and the
Governor of the Punjab is satisfied that
circumstances exist which render it necessary to take immediate action;
Now, therefore, in exercise of the
powers conferred by clause (1) of Article 128 of the Constitution of the
Islamic Republic of Pakistan read with Article 5 of the Provisional
Constitution Order No. 1 of 2007, the Governor of the Punjab is pleased to
make and promulgate the following Ordinance:---
1. Short title, extent and commencement.–
(1) This Ordinance may be cited as the Punjab General Provident Investment
Fund Ordinance 2007.
(2) It extends to the whole
of the Province.
(3) It shall come into
force at once.
2. Definitions.– In this
(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) “Fund” means the Punjab General
Provident Investment Fund established under the Ordinance;
(c) “General Manager” means the
General Manager of the Fund;
(d) “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;
(e) “Government” means the
Government of the Punjab;
(f) “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;
(g) “Management Committee” means the
General Provident Investment Fund Management Committee;
(h) “Member” means a Member of the
(i) “prescribed” means prescribed
by the rules made under the Ordinance;
(j) “Province” means the Province
of the Punjab;
(k) “regulations” means the regulations framed under the Ordinance;
(l) “Reserve Fund” means the
Reserve General Provident Fund created under section 3 of the Ordinance;
(m) “rules” means the rules made under
the Ordinance; and
(n) “sub-committee” means a
sub-committee of the Management Committee.
RESERVE FUND AND
GENERAL PROVIDENT INVESTMENT FUND
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 Pakistan.
Punjab General Provident Investment Fund.– (1) The
Government shall, by notification, establish the Punjab General Provident
(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 Ordinance 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 Ordinance, the Management
Committee shall be known as the General Provident Investment Fund Management
(3) The management and
administration of the Fund shall vest in the Management Committee.
(4) Subject to the
provisions of this Ordinance 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.– (1) 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
POWERS AND FUNCTIONS OF THE MANAGEMENT
7. Powers and functions of the
Management Committee.– (1) The Management Committee shall–
formulate investment policy, establish standards and procedures for the
investment of the assets of the Reserve Fund;
(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
(a) initiate proposals for making
or amendment of the rules;
(b) employ a person as may be
necessary for the purposes of this Ordinance;
(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 the
(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) adopt, 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 under
any other law for the time being in force, the Management Committee shall
not make an investment from the Reserve 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
Pakistan, except with the prior approval of
(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 each
financial year starting from the 1st day of July and ending on 30th
day of June of the succeeding 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
(3) The accounts of the
Fund and the Reserve Fund shall be maintained in such manner as may be
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
Reserve Fund in the manner as may be prescribed.
12. Audit.– (1) The
Government shall appoint a firm of chartered accountants for the annual
audit of the accounts of the Fund.
(2) Annual audit report of the accounts of the Fund
and the Reserve Fund shall be laid before the Management Committee for
13. Public servant.– All persons
acting or purporting to act in pursuance of any provision of this Ordinance,
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 Ordinance,
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 duties.
(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 Fund;
(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 Management Committee.
(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
(5) If a Member is not certain about the conflict of interest
situation, he shall bring the matter before the Management Committee for
(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.
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
19. Regulations.– Subject
to the provisions of this Ordinance and the rules, the Management Committee
may, by notification in the official gazette, frame regulations to give
effect to the provisions of this Ordinance.