PUNJAB PENSION FUND ACT 2007

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THE PUNJAB PENSION FUND ACT 2007 
(I of 2007) 
CONTENTS 
CHAPTER-I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER-II 
RESERVE AND PENSION FUNDS 
3. Reserve Fund 
4. Punjab Pension Fund 
CHAPTER-III 
MANAGEMENT COMMITTEE 
5. Management Committee 
6. Composition of the Management Committee 
7. Qualifications for non-official Members 
8. General Manager 
9. Disqualification of Member 
10. Term of office 
11. Resignation 
12. Casual vacancy 
CHAPTER-IV 
POWERS AND FUNCTIONS OF THE MANAGEMENT COMMITTEE 
13. Powers and functions of the Management Committee 
14. Delegation of powers 
15. Limitations on the investment 
CHAPTER-V 
BUDGET, EXPENSES AND AUDIT 
16. Budget and accounts 
17. Expenses 
18. Audit 
CHAPTER-VI 
MISCELLANEOUS 
19. Public servant 
20. Prohibition of insider trading 
21. Liability of the Government 
22. Conflict of interest 
23. Submission of annual report before the Assembly 
24. Rules 
25. Regulations 
 
TEXT 
1
THE PUNJAB PENSION FUND ACT 2007 
(I of 2007) 
[29th March, 2007] 
An 
Act 
to provide for the establishment of a Fund to generate revenue for the discharge of 
the pension liabilities of the Government. 
Preamble.– Whereas it is expedient to establish a Fund to generate revenue for the 
discharge of the pension liabilities of the Government and to make provisions for 
matters ancillary thereto; 
 It is hereby enacted as follows:– 
CHAPTER-I 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Pension Fund Act 2007. 
 (2) It extends to whole of the Province of the Punjab. 
 (3) It shall come into force at once. 
2. Definitions.– In this Act– 
(a) “Chairman” means the Chairman of the Management Committee; 
2
(aa) “financial year” means the year starting from first day of July and 
ending on 30th day of June of the succeeding year;] 
(b) “Fund” means the Punjab Pension Fund; 
(c) “General Manager” means the General Manager of the Fund; 
(d) “Government” means the Government of the Punjab; 
3
[(dd) “Government bonds” include the bonds issued by or under the authority 
of the Federal Government, a Provincial Government or by a body or 
entity own ed or controlled by the Government, a Provincial 
Government or the Federal Government or a prescribed body or entity;] 
(e) “Management Committee” means the Punjab Pension Fund 
Management Committee; 
(f) “Member” means the Member of the Management Committee; 
                                                           
1This Act was passed by the Punjab Assembly on 7 March 2007; assented to by the Governor of the Punjab on 26 March 2007; 
and, was published in the Punjab Gazette (Extraordinary), dated 29 March 2007, pages 4325-4329. 
2Inserted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008) , w.e.f.16.8.2008, s.2; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
3Inserted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.2;  and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
(g) “prescribed” means prescribed by the rules made under this Act; 
(h) “Province” means the Province of the Punjab; 
(i) “regulations” means the regulations framed under this Act; 
(j) “Reserve Fund” means the Reserve Pension Fund created under 
section 3 of this Act; 
(k) “rules” means the rules made under this Act; and 
(l) “sub-committee” means the sub -committee of the Management 
Committee. 
CHAPTER-II 
RESERVE AND PENSION FUNDS 
3. Reserve Fund.– (1) The Government  shall, by notification, create a Reserve 
Pension Fund in the Public Account of the Province. 
 
4
[(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.] 
4. Punjab Pension Fund .– (1) The Government shall, by notification, establish 
the Punjab Pension Fund for proper management and discharge of its pension 
liabilities. 
 (2) The Fund shall be a body corporate with perpetual succession, 
common seal, power to enter i nto 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 and the rules made 
thereunder. 
CHAPTER-III 
MANAGEMENT COMMITTEE 
5. Management Committee.– (1) The Government shall, by notification, establish 
a committee to be called the Punjab Pension Fund Management Committee. 
 (2) The management and administration of the Fund shall vest in the 
Management Committee. 
 (3) 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. Composition of the Management Committee .– The Management 
Committee shall consist of– 
(i) Minister for Finance, Government of the Punjab; Chairman 
                                                           
4Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.3; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
(ii) Chief Secretary, Government of the Punjab; Vice-Chairman 
(iii) Chairman, Planning & Development Board, Member 
 Government of the Punjab; 
(iv) Secretary, Government of the Punjab; Member 
 Finance Department; 
(v) Secretary, Government of the Punjab,  Member 
 Law, Parliamentary Affairs & 
 Human Rights Department; 
(vi) Secretary (Services), Government of the Punjab, Member 
 Services and General Administration Department; 
(vii) General Manager; and Member/Secretary 
(viii) four persons to be appointed by the Non-official Members 
 Government from the private sector.  
5
[7. Qualifications for non-official Members.– A person shall not be appointed as 
non-official Member unless he has at least ten years experience of banking, finance, 
accounting, asset management, fund management or unit trust management and holds 
a sixteen years, equivalent or higher degree.] 
8. General Manager .– 
6
(1) The Government shall, by notification, appoint 
General Manager of the Fund on such terms and conditions as it may determine.] 
 
7
[(2) A person shall not be appointed as the General Manager unless he has 
at least twelve years experience of management including at least three years 
experience of investment b anking, treasury operations, finance, asset management, 
fund management or unit trust management and holds a sixteen years, equivalent or 
higher degree.] 
 (3) Subject to the provisions of this Act and the rules, the General 
Manager shall exercise such powe rs and perform such functions as may be 
assigned to him by the Management Committee. 
 (4) The General Manager shall hold the office for a renewable term of 
8
[three] years. 
 (5) The Government may, after providing an opportunity of being heard, 
remove the General Manager during the tenure of his office. 
 (6) The General Manager may tender his resignation to the Government and 
shall cease to hold office upon acceptance of his resignation. 
                                                           
5Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.4; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
6Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.5; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
7Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.5; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
8Substituted for the word “five”  by the  Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s. 5; and 
published in the Punjab Gazette (Extraordinary), pages 235-236. 
9. Disqualification of Member .– Notwithstanding anything contained in 
sections 6 and 7, a person shall be disqualified from being a Member who is or has 
been– 
(a) convicted of an offence of fraud or breach of trust or any other offence 
involving moral turpitude;  
(b) adjudged as an un -discharged insolvent or has suspended pay ment of 
his debts or has compounded with the creditors; 
(c) a sponsor, director, chief executive, or in the management of a 
defaulted cooperative finance society or finance company; 
(d) a director or a major shareholder in a company that has overdue loans 
or investments outstanding towards any financial or non -financial 
institution; 
(e) removed or dismissed from the service of Pakistan; and 
(f) penalised or convicted of any offence under the Securities and 
Exchange Ordinance, 1969 (XVII of 1969), the Compan ies Ordinance, 
1984 (XLVII of 1984), the Banking Companies Ordinance, 1962 (LVII of 
1962) or any other law relating to the banking or capital markets. 
10. Term of office.– (1) A Member, not being an ex-officio Member, shall hold the 
office for a renewable term of three years. 
 (2) The Government may, after providing an opportunity of being heard, 
remove any such Member during the tenure of his office in the prescribed manner. 
11. Resignation.– A Member, not being an ex -officio Member, may tender his 
resignation to the Government and shall cease to be a Member upon the acceptance 
of his resignation. 
12. Casual vacancy.– Any vacancy due to the death, resignation or removal of a 
Member, other than an ex -officio Member, shall be filled by the Government through 
appointment of another person as Member and such appointee shall, subject to the 
provisions of this Act, hold such office for the unexpired period of the term of his 
predecessor. 
CHAPTER-IV 
POWERS AND FUNCTIONS OF THE MANAGEMENT COMMITTEE 
13. Powers and fu nctions of the Management Committee. – Subject to the 
provisions of this Act, the Management Committee shall, in the prescribed manner, 
exercise such powers and perform such functions as may be necessary for carrying 
out the purposes of this Act, including– 
(a) formulation of investment policy, establishment of standards and 
procedures for the investment from the Reserve Fund; 
(b) investment of amounts from the Reserve Fund; 
(c) transfer of any profit generated through the investment to the Reserve 
Fund; 
(d) initiating proposals for making or amendment of the rules; 
(e) employ such persons as may be necessary for the purposes of this 
Act; 
(f) creation of sub -committees from amongst its Members to make 
recommendations on a specific issue or issues; 
(g) preparation of an annual report for submission to the Government 
detailing the performance of the Fund; 
(h) borrow money from the Government or any other institution; and 
(i) performance of such other functions which are ancillary to the above 
functions or incidental to the purposes of this Act. 
14. Delegation of powers .– The Management Committee may delegate to the 
General Manager, a sub-committee or a Member, any of its powers or functions: 
 Provided that it shall not delegate the power to– 
(a) adopt, amend or repeal regulations; 
(b) approve the investment policy, standards and procedures for the 
operation of the Fund; or 
(c) fill a vacancy in a sub-committee. 
15. Limitations on the investment. – 
9
[Notwithstanding anything contained in 
section 13 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 Reserve Fund of the 
year–] 
(a) for a period of more than three years or in any foreign market or firm, 
except with the prior approval of the Government; 
(b) for an amount of more than twenty -five percent of the Reserve Fund in 
one financial institution cumulatively; 
(c) for an amount 10[up to one hundred] percent of the Reserve Fund in the 
Government bonds cumulatively; 
(d) for an amount of more than five percent of the Reserve Fund in 
corporate or other bonds or short term financial instruments, per issue 
of the bond or the instrument; and 
(e) for an amount of more than five percent of the Reserve Fund in third party 
products, unit trust or through managed portfolios in each case. 
CHAPTER-V 
BUDGET, EXPENSES AND AUDIT 
16. Budget and accounts.– 
11
[(1) The General Manager shall prepare the budget 
of the Fund for a financial year.] 
                                                           
9Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.6; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
10Substituted for the words “more than seventy -five” by the Punjab Pension Fund (Amendment) Act 2023 ( XII of 2023), 
published in the Punjab Gazette (Extraordinary), dated: 17 February 2023, pp. 3889, s.2. 
 (2) The budget shall be placed 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. 
17. 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 such manner as may be prescribed. 
18. 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 shall be laid before the 
Management Committee for approval. 
CHAPTER-VI 
MISCELLANEOUS 
19. Public servant.– All persons acting or purporting to act in pursuance of any 
provision of this Act, shall be deemed to b e public servants within the meaning of 
section 21 of the Pakistan Penal Code, 1860 (XLV of 1860). 
20. Prohibition of insider trading .– The provisions of Chapter III -A of the 
Securities and Exchange Ordinance, 1969 (XVII of 1969), shall apply, mutatis 
mutandis, to the Members, employees, or any other person associated with the 
Fund. 
21. Liability of the Government .– Notwithstanding anything contained in this 
Act, right to pension of any person shall not be restricted, extinguished, annulled or 
varied and th e Government shall not be absolved from its liabilities with respect to 
the payment of pension. 
22. Conflict of interest .– (1) No Member shall, directly or indirectly, receive any 
profit from his position as a Member, except the reasonable expenses incurre d by 
him in the performance of his duties. 
 (2) The pecuniary interests of immediate family members or close 
personal or business associates of a Member shall also be considered the pecuniary 
interests 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 Fund; 
(c) receives more than twenty -five percent of his individual income from a 
business entity that has a substantial interest in the Fund; 
                                                                                                                                                                                     
11Substituted by the Punjab Pension Fund (Amendment) Act 2008 (II of 2008), w.e.f.16.8.2008, s.7; and published in the Punjab 
Gazette (Extraordinary), pages 235-236. 
(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) himself, or one or more members of his family, business partners or 
close personal associates, may personally benefit either directly or 
indirectly, financially or otherwise, from his position on the 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 
Committee or any of its committees 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 Committee for advice. 
 (6) The decision of the Committee on conflict of interest shall be final. 
 (7) A Member shall not take part in the proceedings of the 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 Committee 
shall be recorded in the minutes of the meeting. 
23. Submission of annual report before the Assembly .– The Government 
shall, within six months of a financial year, submit the annual report of the Fund 
pertaining to the previous financial year  before the Provincial Assembly of the 
Punjab. 
24. Rules.– The Government may make rules for carrying out the purposes of 
this Act. 
25. Regulations.– Subject to the provisions of this Act and the rules, the 
Management Committee may frame regulations to give effect to the provisions of this 
Act.