PUNJAB GENERAL PROVIDENT INVESTMENT FUND ACT 2009

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THE PUNJAB GENERAL PROVIDENT INVESTMENT FUND 
ACT 2009 
(V of 2009) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Definitions 
CHAPTER II 
RESERVE FUND AND PUNJAB GENERAL 
PROVIDENT INVESTMENT FUND 
3. Reserve Fund. 
4. Punjab General Provident Investment Fund 
CHAPTER III 
MANAGEMENT COMMITTEE 
5. Management Committee 
6. General Manager 
CHAPTER IV 
POWERS AND FUNCTIONS OF THE 
MANAGEMENT COMMITTEE 
7. Powers and functions of the Management Committee 
8. Delegation of powers and functions 
9. Limitations on the investment 
CHAPTER V 
BUDGET, EXPENSES AND AUDIT 
10. Budget and accounts 
11. Expenses 
12. Audit 
 
 
CHAPTER VI 
MISCELLANEOUS 
13. Public servant 
14. Prohibition of insider trading 
15. Liability of the Government 
16. Conflict of interest 
17. Submission of annual report before the Assembly 
18. Rules 
19. Regulations 
 
 
 
 
 
TEXT 
1
THE PUNJAB GENERAL PROVIDENT INVESTMENT FUND ACT 2009 
(V of 2009) 
[8th July, 2009] 
An 
Act 
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. 
Preamble.– Whereas it is expedient to establish the Punjab General Provident 
Investment Fund to gener ate 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:– 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement .– (1) This Act may be cited as  the 
Punjab General Provident Investment Fund Act 2009. 
 (2) It extends to the whole of the Province. 
 (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 a nd 
ending on 30th day of June of the succeeding year; 
(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 Provi dent 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; 
                                                           
1This Act was passed by the Punjab Assembly on 1 July 2009; assented to by the Governor of the Punjab on 7 July 2009; and, was 
published in the Punjab Gazette (Extraordinary), dated 8 July 2009, pages 69-73. 
(h) “Management Committee” means the General Provident Inves tment 
Fund Management Committee; 
(i) “Member” means a Member of the Management Committee; 
(j) “prescribed” means prescribed by the rules made under the Act; 
(k) “Province” means the Province of the Punjab; 
(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. 
CHAPTER II 
RESERVE FUND AND PUNJAB 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. 
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. 
CHAPTER III 
MANAGEMENT COMMITTEE 
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 manageme nt 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. 
CHAPTER IV 
POWERS AND FUNCTIONS OF THE MANAGEMENT COMMITTEE 
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 Fund; 
(b) invest an amount from the Reserve Fund; 
(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 und er the rules 
or which are ancillary to the above functions. 
 (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 fro m 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 the Fund;  
(f) enter into a contract; and 
(g) exercise such other powers as may be conferred on it under the r ules 
or which are incidental to the above powers. 
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 regulations; 
(b) approve the investment policy, standards and procedures for the 
operation of the Fund; or 
(c) fill a vacancy in a sub-committee. 
9. Limitations on th e 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 w ith the prior 
approval of the Government; 
(b) in a foreign market or an entity registered outside Pakistan, except with 
the prior approval of the Government; 
(c) for an amount of more than twenty -five percent of the Reserve Fund in 
one financial institution cumulatively; 
(d) for an amount 2[up to one hundred] 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; and 
(g) in an asset or a security prohibited by the rules. 
CHAPTER V 
BUDGET, EXPENSES AND AUDIT 
10. Budget and accounts .– (1) The Genera l 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 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 approval. 
CHAPTER VI 
MISCELLANEOUS 
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 
                                                           
2Substituted for the words “more than seventy -five” by the Punjab General Provident Investment Fund (Amendment) Act 2023 
(XI of 2023), published in the Punjab Gazette (Extraordinary), dated: 17 February 2023, pp. 3887, s.2. 
being in force on the subject shall, mutatis mutandis, apply to the Member s, 
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, ex tinguished, 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 Membe r 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 ma nagement 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 membe rs 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 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 en d of a financial year, submit an annual report of the 
Fund in the Provincial Assembly of the Punjab. 
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 Act.