Suggestions on GPF

Letter August 29, 2019
Owing to increased inflationary pressure, the government has recently increased the rate of interest on savings

ISLAMABAD: As we all know that at present our country is passing through a difficult economic phase. Owing to economic troubles and increased inflationary pressure, the government has recently increased the rate of interest on savings to attract more finances from the people. As it is a known fact that all government employees are required to contribute a fixed subscription towards their General Provident Fund which varies from scale to scale but is flat for every scale. I would suggest that this subscription should be variable (not fixed) at the discretion of the government servant concerned and he/she may be allowed to contribute more than the fixed contribution as per his/her own will. This arrangement will not only fetch more finances for the government but ensure better old-age benefits for the employees concerned.

The above suggestion is not unique; rather, it has been practised in the Armed Forces as their members are allowed to contribute more than the fixed contribution to their Defence Services Provident (DSP) Fund — equivalent to General Provident (GP) Fund in the Armed Forces.

Muhammad Tariq Jamil Khan

Published in The Express Tribune, August 29th, 2019.

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