If you’re a federal or provincial government employee in Pakistan, your General Provident Fund (GP Fund) is one of the few retirement savings tools where the government guarantees you a fixed, tax-sheltered return every year. But because the Ministry of Finance notifies the official mark-up rate only after a fiscal year closes — not at the start of it — a lot of confusion surrounds what “this year’s” GP Fund rate actually is. This guide breaks down exactly where things stand for 2026-27, how the rate is calculated, and how much profit you can expect on your balance.
Table of Contents
Latest GP Fund Interest Rate 2026-27
As of July 2026, the Ministry of Finance has not yet issued an official mark-up notification for FY 2025-26 or FY 2026-27. The most recent confirmed rate on record is:
| Fiscal Year | GP Fund Mark-Up Rate | Status |
|---|---|---|
| 2024-25 | 12.46% | ✅ Officially notified (31 July 2025) |
| 2025-26 | Not yet notified | ⏳ Pending |
| 2026-27 | Not yet notified | ⏳ Pending |
This 12.46% rate was conveyed by the Ministry of Finance under letter No. 8(1)GS-I/2018, dated 31 July 2025, and subsequently adopted by the provincial Accountant General offices, including Khyber Pakhtunkhwa, Punjab, Sindh, and Balochistan. It marked a 1.51 percentage point cut from the 13.97% rate that applied in 2023-24.
Bookmark this page — we update it within 24 hours of any new Ministry of Finance notification for 2025-26 or 2026-27.
GP Fund Interest Rate 2026-27 & GP Fund Calculator
The GP Fund Interest Rate 2026-27 is an important factor for calculating the total General Provident Fund (GP Fund) balance of government employees in Pakistan. With the latest GP Fund interest rate 2026, employees can use a GP Fund Calculator or GP Fund Interest Rate Calculator to estimate annual profit, monthly contributions, accumulated balance, and expected retirement benefits. Staying updated with the latest GP Fund interest rate ensures accurate financial planning and helps employees track the growth of their GP Fund savings before retirement.
Why the GP Fund Rate for 2025-26 and 2026-27
Unlike bank profit rates, the GP Fund mark-up is not announced in advance. The Finance Division determines it retroactively, based on the average yield of government securities and National Savings schemes during the fiscal year that has just ended, and only then issues a formal notification. Looking at the pattern of recent notifications:
- FY 2022-23 rate (14.22%) — notified July 2023
- FY 2023-24 rate (13.97%) — notified September 2024
- FY 2024-25 rate (12.46%) — notified July 2025
- FY 2025-26 rate — expected around mid-to-late 2026
- FY 2026-27 rate — expected around mid-to-late 2027
In other words, employees always earn interest for the current year at whatever rate is eventually notified — your GP Fund keeps accruing profit in the background even before the official number is announced; the notification simply confirms and locks in the figure used to credit your account. If you’re checking your GP Fund statement in the meantime, use the 12.46% rate as the most reliable reference point until the new notification arrives.
GP Fund Calculation Formula
GP Fund interest in Pakistan is calculated on the monthly running balance, compounded annually at the end of the fiscal year (30 June). The standard formula used by Accountant General offices is:
Annual Interest = (Sum of Monthly Balances × Rate of Interest) ÷ 1200
Where:
- Sum of Monthly Balances = your GP Fund closing balance at the end of each month, added together for all 12 months
- Rate of Interest = the notified annual mark-up rate (e.g., 12.46)
- 1200 = 12 months × 100 (to convert the annual percentage into a monthly-compounded figure)
Worked Example (at 12.46%)
Suppose your GP Fund balance grows steadily from PKR 300,000 in July to PKR 355,000 by June, increasing by roughly PKR 5,000 every month through your salary subscription.
- Add up all 12 monthly closing balances → approx. PKR 3,930,000
- Multiply by the rate: 3,930,000 × 12.46 = 48,979,800
- Divide by 1200 → PKR 40,816 annual interest credited
This interest is added to your principal balance and starts earning further compounded interest in subsequent years — which is why GP Fund balances grow significantly faster in the final 5-10 years before retirement.
GP Fund Profit Chart — Historical Rates
Use this chart to estimate profit for previous years or to compare year-on-year trends:
| Fiscal Year | Rate of Mark-Up | Change vs Previous Year |
|---|---|---|
| 2020-21 | 13.00% | — |
| 2021-22 | 12.40% | ▼ 0.60% |
| 2022-23 | 14.22% | ▲ 1.82% |
| 2023-24 | 13.97% | ▼ 0.25% |
| 2024-25 | 12.46% | ▼ 1.51% |
| 2025-26 | Pending | — |
| 2026-27 | Pending | — |
Key trend: GP Fund rates broadly track the trajectory of Pakistan’s National Savings and government bond yields. With SBP policy rate cuts continuing through 2025-26, most payroll and pension consultants expect the eventual 2025-26 notification to come in below 12.46%, though this is an informal projection, not an official figure — treat it only as a planning estimate.
GP Fund Calculator Online
Rather than calculating your monthly-balance interest by hand, use our free GP Fund & Retirement Benefits Calculator — it applies the official 1200-divisor formula automatically, projects your balance year-by-year to retirement, and also covers pension and benevolent fund estimates in the same dashboard.
If you’re also revising your take-home pay for 2026-27, these related tools may help:
- Pension Calculator Pakistan 2026-27
- Federal Salary Increase Calculator 2026-27
- Pay Scale 2026-27 — Full BPS 1-22 Chart
- Federal Employee Salary & Tax Calculator
For a full breakdown of how pension, family pension, and early retirement rules interact with your GP Fund payout, see our detailed guide: Pension Rules Pakistan 2026.
GP Fund Withdrawal Rules
GP Fund is governed by the General Provident Fund (Central Services) Rules, 1960, and its provincial equivalents. Broad rules that apply across federal and provincial employees:
- Final withdrawal is permitted on retirement, resignation, or death (paid to nominees/legal heirs).
- Advances (non-refundable) can be sanctioned for specific purposes — marriage in the family, medical treatment, higher education, house construction/repair, or a family emergency — generally up to a fixed number of months’ pay or a percentage of the balance, subject to departmental approval.
- Advances (refundable) are also allowed for less restrictive purposes, but must be repaid through salary deductions over a set number of installments.
- Employees within a certain number of years of retirement (commonly the last 12-24 months of service, depending on department policy) may be eligible for partial final withdrawal without needing to justify the purpose.
- All withdrawals require submission through the employee’s DDO (Drawing and Disbursing Officer) and sanction from the competent authority, with supporting documents (CNIC, service book extract, purpose-specific proof).
- Un-withdrawn GP Fund balances continue to earn the notified annual mark-up until the funds are actually paid out.
Always confirm exact limits and documentation with your department’s Accounts/Finance section, as some provinces (Punjab, Sindh, KP, Balochistan) apply minor procedural variations.
Frequently Asked Questions
What is the GP Fund interest rate for 2026-27 in Pakistan? The Ministry of Finance has not yet notified the rate for 2026-27. The last confirmed rate is 12.46%, applicable for FY 2024-25.
When will the GP Fund rate for 2025-26 be announced? Based on past patterns, the government typically notifies each year’s rate 3-12 months after that fiscal year ends — so the 2025-26 rate is expected sometime in mid-to-late 2026.
How is GP Fund interest calculated? Using the formula: (Sum of 12 monthly closing balances × rate of interest) ÷ 1200, compounded annually at the close of the fiscal year.
Is GP Fund interest taxable in Pakistan? GP Fund is a government-backed retirement savings scheme and is generally treated as tax-exempt at the time of final withdrawal, subject to prevailing FBR rules — confirm current treatment with your DDO or a tax advisor before retirement.
Can I check my GP Fund balance online? Most Accountant General offices (AGPR, AG Punjab, AG Sindh, AG KP, AG Balochistan) provide balance-check portals or SMS services tied to your GP Fund/CNIC number — check your provincial AG website for the specific service.
What is the current GPF interest rate in Pakistan? The General Provident Fund (GPF) subscription profit rate for government employees has historically tracked long-term government investment instruments. For recent consecutive fiscal periods, provincial and federal notifications have maintained the GPF accumulation return rate at 7.10%.
What is the general interest rate (SBP Policy Rate) in Pakistan for 2026? The benchmark interest rate—set by the State Bank of Pakistan (SBP) as its policy rate—stands at 11.50%. The Monetary Policy Committee maintained this level following reviews to balance inflationary pressures and economic growth targets.
Quick Reference FAQ
| Question | Answer / Detail |
| What is the GPF interest rate? | Maintained at 7.10% for government service employee funds. |
| What is the SBP Policy Rate in 2026? | 11.50% (held steady by the State Bank of Pakistan). |
| Who determines the GPF rate? | Respective federal or provincial finance ministries notifications, aligned with public debt investment yields. |
| Who determines the national interest rate? | The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP). |
Sources: Ministry of Finance, Government of Pakistan (Notification No. 8(1)GS-I/2018, dated 31 July 2025); Accountant General Khyber Pakhtunkhwa GP Fund Interest Rates page. This article will be updated as soon as the 2025-26 or 2026-27 rate is officially notified.
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