PESHAWAR: The government of Khyber Pakhtunkhwa signed an agreement with Pak-Qatar Takaful as fund manager under the Contributory Provident Fund (CPF) scheme on Thursday.
The agreement was signed in a simple but impressive ceremony held at the Finance Department’s Conference Room.
Besides, Advisor on Finance to KP government, Muzzammil Aslam, Secretary Finance Amer Sultan Tareen, and Additional Secretary Budget Arshad Ali, Team lead Abdul Qayyum, Deputy Director Pension Cell Naveed Alam, along with the delegation representing Pak-Qatar Takaful attended the ceremony.
Speaking on the occasion, Finance Advisor Muzzammil Aslam said that the Khyber Pakhtunkhwa Government is expanding the Contributory Provident Fund scheme to further strengthen its pension reform efforts.
The CPF, launched in 2022 for provincial civil servants, is a flagship pension initiative, and more than 59,000 government employees have been registered under the scheme so far.
This programme is based on a joint contribution model aimed at securing the financial future of government employees — wherein the employee contributes 10% of their basic pay while the government contributes 12% monthly.
It was highlighted at the event that a key feature of the CPF scheme is the outsourcing of its investment component, which operates under the Voluntary Pension System (VPS) model - a structured pension framework regulated by the Securities and Exchange Commission of Pakistan (SECP) since 2005. The Khyber Pakhtunkhwa Government has adopted this model after tailoring it to meet the specific needs of the province.
The Advisor on Finance also explained that the CPF scheme engages only those Asset Management Companies (AMCs) that are licensed by the SECP and have a minimum credit rating of AM2 - reflecting high standards of professional fund management. Since the scheme’s launch, the government had entered into agreements with 12 such licensed AMCs.
During the ceremony, it was shared that Pak-Qatar Family Takaful Limited recently obtained its VPS license and applied to become a fund manager under the CPF scheme. After a comprehensive evaluation, the Khyber Pakhtunkhwa Government formally signed the agreement with Pak-Qatar on July 23, 2025, through the office of the Secretary Finance.
With this agreement, Pak-Qatar becomes the 13th approved fund manager on the CPF investment panel.
This expansion reflects the Khyber Pakhtunkhwa Government’s commitment to providing diversified, professionally managed, and Shariah-compliant investment options under its pension framework to ensure transparency, long-term sustainability, and employee confidence.
Copyright Business Recorder, 2025
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