Pakistan, Aug. 1 -- The federal government has lowered the annual return rate on General Provident (GP) Fund deposits to 12.46% for the financial year 2024-25. This move was confirmed through a notification issued by the Ministry of Finance on Friday. It reflects a continuing decline from last year's 13.97% and 14.22% recorded in 2022-23.

This cut in the mark-up rate will impact millions of government employees who depend on the GP Fund for their long-term savings. For many, this fund serves as a financial safety net for retirement or emergencies. As the return shrinks, employees may see reduced growth on their savings over time.

The decision appears to be part of the government's broader economic and fiscal policy adjustments. Analysts...