1

KASHF FOUNDATION
PROVIDENT FUND RULES
A.

THE NAME

1.

The Fund shall be called the Kashf Foundation Provident Fund.

B.

DEFINITIONS

2.

In these Rules, unless there is any thing repugnant in the subject or

context inconsistent with the meaning assigned: -

i).

Accumulated Balance Due to a Member means the balance to his credit,

or such portion thereof as may be claimable by him under the Rules of the
Fund, on the day he ceases to be an employee of the KASHF.

ii).

Annual Accretion in relation to the balance to the credit of a Member,

means the increase to such balance in any arising from contributions and
interest or profit.

iii).

Balance to the Credit of a Member means the total amount to the credit
of a Members individual account in the Fund at any time.

iv).

Contribution means any sum contributed by or on behalf of any

Member out of his salary or by KASHF out of its won money, to the
individual account of its Member, but does not include any sum credited
as interest or profit.

v).

Effective Date means the date on which these Rules come into force in
accordance with Rule 3.

vi).

Employee means an employee of the KASHF.

vii).

Employer means the KASHF.

viii). Family means the Members spouse, legitimate children, step children,
parents, sisters and brothers who reside with the Member and are wholly
dependent on him.

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ix).

Financial Year means the calendar year commencing from the Ist day of
January and ending on 31st day of December.

x).

Fund means a Regular Employee of the KASHF who is a contributor to

the Fund.

xii).

Pay Period means the period for which salary is paid to any employee
by the KASHF.

xiii).

Management Staff mean the management staff of the KASHF as defined

by the Service Rules of the KASHF.

xiv).

Professional Staff means the professional staff of the KASHF as defined

by the Service Rules of the KASHF.

xv).

KASHF means the Kashf Foundation.

xvi).

Regular Employee means an employee of the KASHF other than an

apprentice, a probationer, a temporary employee or a consultant hired for
a specific purpose or for a temporary period.

xvii). Rules means the KASHF Provident Fund Rules as amended from time
to time.
xviii). Salary means the basic salary or basic wage or basic pay including
dearness allowance but excluding all other allowances, bonuses,
commissions, rewards, honoraria or other perquisites or remunerations.
The decision of the KASHF as to the amount of salary shall be final and
binding on all parties.
xix).

Support Staff means the support staff of the KASHF as defined by the
Service Rules of the KASHF.

xx).

Trust means the Trust established by the KASHF for the management
and control of the Fund by executing a trust deed in accordance with the
provisions of the Trust Act, 1882 and Part-I of the Sixth Schedule to the
Income Tax Ordinance, 2001.

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xxi).

Trustees means the Trustees of the Fund appointed under the deed
establishing the Trust.

xxii). Words importing the singular number shall, unless a contrary contention
appears, be taken to include the feminine gender and vice versa.
xxiii). Words importing the singular number shall, unless a contrary contention
appears be taken to include the plural number and vice versa.
C.

EFFECTIVE DATE

3.

These Rules shall come into force on the date of the recognition of the
Fund by the Commissioner of Income Tax in accordance with the
provisions of Part-1 of the Sixth Schedule to the Income Tax Ordinance,
2001.

D.

OBJECTS

4.

The objects of the Trust are: -

i).

to establish a Fund for the benefit of the Regular Employees who become
Member of the Fund, and

ii).

to accumulate money for the benefit of the Members as future provision

for themselves and their families.

E.

THE END

5.

The Fund shall consist of:-

i).

all the sums contributed by KASHF

ii)

all contributions made by the Regular Employees who are Members of the
Fund

iii)

accretions to the Fund through investment of its balances or otherwise in

accordance with these Rules

iv)

securities purchased from the contributions and accretions

v)

capital gains arising from the transfer of capital assets.

F.

CONTROL AND MANAGEMENT

6.

The custody, management, investment and control of the Fund shall be

vested in the Trustees.

7.

No Trustee shall be entitled to any remuneration from the Fund for work
performed by him as Trustee.

8.

The Trustees shall be entitled to employ such legal advisors, accountants

and other professionals as they may consider necessary or expedient for
purposes of the Fund.

9.

The costs of, and expenses incidental to, the establishment of the Fund
shall be borne by the KASHF. All costs and expenses in connection with
the management and administration of the Fund other than the costs of,
and expenses incidental to, the establishment of the Fund shall be borne
by the Fund, provided that no such costs or expenses shall be charged to
the contributions made by the Members.

10.

The number of Trustees shall not be less than three nor more than six, one
of whom shall be the Chairman of the Trustees. The Trustees shall include
one Trustee representing the professional staff and one Trustee
representing the support staff.

11.

In case of disagreement amongst the Trustees the decision of the majority

shall prevail. In case of equality of votes, the Chairman shall have a second
and casting vote.

12.

Three clear days notice shall be given for a meeting of the Trustees. The
quorum for a meeting of the Trustees shall be two if the Chairman is
present and three if he is not present. In the absence of the Chairman, the
Trustees present may elect one of their members to act as Chairman for
purposes of that meeting.

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13.

The Chief Executive of the KASHF shall nominate the first Trustees.
Future Trustees will be appointed in accordance with the provisions of the
deed establishing the Trust.

14.

A Trustee who is about to absent himself from Pakistan may, with the
approval of the other Trustees, delegate to any person qualified to be a
Trustee, all or any of his powers during the period of his absence abroad.

15.

The Secretary shall be appointed by the Trustees. The Secretary shall be an

accountant but shall not himself be a Trustee. The Secretary shall be
responsible for maintaining the books and records of the Fund including
the individual accounts of the Members, and for implementing decision
taken by the Trustees.

G.

MEMBERSHIP

16.

A Regular Employee on the effective date shall be eligible to become a

Member from the said date provided he opts to become a member by
applying for Membership in the form prescribed by the Trustees.

17.

An Employee on the Effective Date who becomes a Regular Employee

after the said date shall be eligible to become a Member with effect from
the date of his regularization provided he opts for membership by
applying in the form prescribed by the Trustees.

18.

An Employee employed after the Effective Date shall become a member

with effect from the date of becoming a Regular Employee. Such Employee
shall be bound to apply for membership in the form prescribed by the
Trustees.

19.

Subject to the other provisions of these Rules, a Regular Employee who

becomes a member shall remain a Member until he ceases to be an
employee of the KASHF.

H.

CONTRIBUTION OF MEMBERS.

20.

From the date that a Regular Employee becomes a member, he shall

contribute to the Fund 10% of his salary for each pay period.

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21.

The contribution payable by a Member shall be deducted at source by the

KASHF from the salary payable to him during each pay period and shall
be paid by the KASHF to the Trustees for credit to the individual account
of each Member.

22.

The contribution payable by a Member from his leave salary shall be the
same as prescribed under Rule 21. However, no contribution shall be
payable by either the Member or the KASHF for any period of leave
without pay.

23.

For the purposes of making deductions from the salary of a Member,

fractions of a Rupee shall be rounded to the nearest Rupee.

I.

CONTRIBUTION OF KASHF

24.

The KASHF shall contribute to the Fund, during each pay period, a sum
equal to 10% of the salary of all Members of the Fund.

25.

The KASHF contribution shall be paid to the Trustees for credit to the
individual account of each Member in amounts equal to the contribution
of each Member.

J.

INVESTMENTS

26.

Subject to the provisions of the Income Tax Ordinance, 2001, the Trustees
shall invest the moneys of the Fund in accordance with the provisions of
section 227 of the Companies Ordinance, 1984, or deposit or invest the
sum as permitted by Rule 102 of the Income Tax Rules, 2002.

27.

The Trustees may, from time to time, dispose of or realize the investment
made by them and, subject to Rule-26, re-invest the proceeds in such
manner as the Trustees deem desirable in the interests of the Fund and the
Members.

28.

All investments shall be made under the joint signatures of not less than
two Trustees.

K.

ACCOUNTS.

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29.

The Trustees shall open and operate an account with a Scheduled Bank at
Lahore in which shall be deposited the contributions of both the Members
and the KASHF. All moneys in such bank account shall be dealt with in
accordance with these Rules. The bank account shall be operated by not
less than two Trustees nominated by the Trustees for this purpose.

30.

The Secretary shall keep and maintain proper books of accounts showing
all sums of money received and expended by the Fund, the matters in
respect of which receipts and expenditures have taken place, and the
assets and liabilities of the Fund, in the manner prescribed by the Income
Tax authority under Part-I of the Sixth Schedule to the Income Tax
Ordinance, 2001 and the Income Tax Rules, 2002.

31.

The Secretary shall maintain an individual account of each Member.

Subject to the provisions of Part-I of the Sixth Schedule to the Income Tax
Ordinance, 2001, such individual accounts shall be maintained in the
manner prescribed in Rule 95 of the Income Tax Rules, 2002.

32.

The accounts of the Fund, including the individual accounts of each

Member, shall be made up on an annual basis within 150 days of the close
of each financial year. Such accounts shall include a statement of income
and expenditure, a balance sheet of assets and liabilities and the
individual account of each Member.

33.

Within 30 days of the preparation of the accounts, the Trustees shall cause
accounts to be audited by a firm of Chartered Accountants appointed by
the Trustees.

34.

As soon as the audit has been completed the Trustees shall cause to be
credited to the individual account of each Member the annual accretion to
which he is entitled based on the net income of the Fund during the
preceding financial year. The annual accretion shall be calculated on a
prorata basis in accordance with the total amount standing to the credit of
each Member at the close of the preceding financial year. As soon as the
annual accretions have been credited to the individual accounts, the
Trustees shall send to each Member a statement of his account which shall
be deemed to be final and binding on him except for the decision of the
Trustees on any error notified to them in writing within 30 days after the
receipt of the statement by the Member.

35.

The audited accounts shall be placed for approval before the annual
meeting of the Members which shall be held not later than the 30 th
September of each year.

K.

WITHDRAWALS FROM THE FUND.

36.

Withdrawals by Members from the accumulated balance in their

individual accounts may be allowed by the Trustees in the following
circumstances: (a) to pay expenses in connection with the illness of a Member or a
member of his family;
(b) to meet the expenditure on purchase of a motor cycle or scooter
provided that authenticated copies of documents substantiating such
purchase are deposited with the Trustees of the Fund;
(c) to pay the overseas passage by reason of health or education of a
Member or a member of his Family;
(d) to pay expenses in connection with marriages, funerals or ceremonies,
which, by the religion of the Member, it is incumbent upon him to
perform and in connection with which it is obligatory that expenditure
should be incurred;
(e) to pay expenses in connection with the performance of Haj by the
Member;
(f) to meet the expenditure on building or purchasing a house or a site for
a house, provided that the documents substantiating the building or
purchase of such house, or the purchase of such site, are deposited
with the Trustees of the Fund;
(g) to meet the expenditure on repairs, renovation or extension of a
residential house belonging to the Member;
(h) to pay premiums on policies of insurance on the life of the Member or
of his spouse provided that the policy is assigned to the Trustees of the

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Fund or at their discretion deposited with them and that the receipt
granted by the insurance company for the premiums is form time to
time handed over to the Trustees for inspection by the Commissioner;
(i) to purchase shares of a public limited company for investment as
permitted by the Income tax Rules, 2002;
(j) in case of a Member who has attained the age of fifty years on the date
on which withdrawal is permitted
(i)

to meet the expenditure on purchase of house and

construction of house on land owned by him or a member of
his Family anywhere in Pakistan provided that the first
installment of the withdrawal under this provision shall be
allowed to be drawn only after an agreement has been
executed between the Member and the Trustees of the Fund
to the effect that the Member shall expend the full amount of
the said advance towards the purchase or the building of a
house a claimed at the earliest possible opportunity and if
the actual amount so expended is less than the amount of
permitted withdrawal the Member shall repay the difference
into the Fund forthwith and further that if the said house is
sold or otherwise alienated by its owner to any other person
while the Member is till in service, the Members shall
forthwith repay into the Fund the entire amount of the
withdrawal together with interest accrued thereon in lumpsum.

(ii)

to meet the expenditure on the purchase of agricultural land

from Government provided that the first installment of a
withdrawal under this provision shall be allowed to be
drawn only after an agreement has been executed between
the Member and the Trustees of the Fund to the effect that
the Member shall expend the full amount of the said
advance towards the purchase of the said piece of land at the
earliest possible opportunity and if the actual amount so
expended is less than the amount of permitted withdrawal
the Member shall repay the difference into the Fund
forthwith and further that if the said house is sold or

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otherwise alienated by its owner to any other person while
the Member is still in service, the Member shall forthwith
repay into the Fund the entire amount of the withdrawal
together with interest accrued thereon in lump sum.
(iii)

to repay a loan taken from a financial institution provided

that the Member shall, within a period of two weeks from
the date of withdrawal produce satisfactory evidence before
the Trustees to show that the advance has been utilized for
the purpose for which it was drawn failing which the entire
amount of withdrawal together with interest accrued
thereon shall forthwith become repayable to the Fund in a
lump-sum;

(k) in the case of a Member proceedings on leave preparatory to

retirement; at the discretion of the Trustees withdrawal may be allowed
without assigning any reason provided that where the Member rejoins
duty on the expiry of his leave, the amount withdrawn together with
the interest accruing thereon at the rate allowed by the Fund shall be
repaid forthwith to the Fund in a lump sum.
L.

LIMITS ON WITHDRAWALS.

37.

The Trustees shall not permit a withdrawal in excess of the balance to the
credit of a Member.

38.

Withdrawals permitted under these Rules shall not exceed the following
limits, namely;
(a) in the case of withdrawals permitted under clause (a), (b), (c), or (d) of
Rule 36, six months salary of the Member or the total of the
Accumulated Balance to his Credit;
(b) in the case of withdrawals permitted under clause (e) of Rule-36, six
months salary of the Member or twenty five thousand rupees or the
total of the Accumulated Balance to his Credit, whichever is the lowest;
(c) in the case of withdrawals permitted under clause (f) or (g) of Rule-36,
thirty-six

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(d) in the case of withdrawals permitted under clause (h) of Rule 36,
eighteen months salary of the Member or the total of the Accumulated
Balance to his Credit, whichever is the less, provided that this
restriction shall apply to each withdrawal and not to the total
withdrawal;
(e) in the case of withdrawals permitted under clause (i) of Rule-36, six
months salary of the Member or eighty percent of the total of the
Accumulated Balance to his Credit, whichever is the less;
(f) in the case of withdrawals permitted under clause (j) of Rule-36,
twenty-four months salary of the member or eighty percent of the total
of the Accumulated Balance to his Credit, whichever is the less;
(g) in the case withdrawals permitted under clause (k) of Rule 36, ninety
percent of the Accumulated Balance to the Credit of the Member.
M.

SECOND WITHDRAWALS.

39.

The Trustees shall not allow a second withdrawal until the sum first
withdrawn is fully paid except as under;

N.

(i)

Withdrawal (s) may be permitted for the purposes specified in

clause (h) of Rule 36, notwithstanding that the sums previously
drawn for the same purpose has or have not been repaid.

(ii)

A withdrawal may be permitted for any one of the purposes

specified in Rule 36 other than that specified in clause (a) thereof
notwithstanding that the sum or sums withdrawn for the purposes
of clause (e) of Rule 36 has or have not been repaid.

(iii)

A withdrawal may be permitted for any of the purposes specified in

rule 36 other than those specified in clause (f) and (h) thereof
notwithstanding that the sum or sums withdrawn for the purposes
of clause (d) of Rule 36 has not been repaid.

REPAYMENTS.

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40.

Where a withdrawal has been allowed for a purpose specified in clauses

(f) (h) (i) (j) or (k) of Rule 36 the Trustees may, in their discretion, allow the
Member not to re-pay the amount withdrawn.

41.

Where a withdrawal is allowed for purposes other than those referred to

in Rule 40, the amount withdrawn shall be repaid in not more than 48
equal monthly installments and, at the discretion of the Trustees, shall
bear profit on the amount withdrawn or the balance thereof outstanding
from time to time at 1% above the rate payable for the time being on the
Accumulated Balance in the Fund to the Credit of the Member.

42.

Notwithstanding anything contained in Rule 41, where a Member elects

not to receive any interest or profit accruing on his Accumulated Balance,
no interest or profit shall be charged on the amount withdrawn by such
Member from the Fund.

43.

The KASHF shall deduct the installments payable under Rule 41 from the
salary of the Member and pay them to the Trustee commencing from the
second monthly payment made after the withdrawal, in the case of a
Member on leave without pay, from the second monthly installment after
joining his duty.

O.

NOMINATION.

44.

A Member may nominate one or more members of his Family as the

person (s) entitled to receive the Accumulated Balance to his Credit in the
event of death while in the service of KASHF. If a Member nominates
more than one member of his Family, he shall specify the share payable to
each nominee. A Member may, from time to time, change the nomination
(s) made by him through written intimation to the Trustees.

P.

PAYMENTS.

45.

The Accumulated Balance due to a Member shall be paid to his

nominee(s) in the event of the Members death while in the service of the
KASHF. In the absence of any nomination such Balance shall be paid to
the Members legal heirs as determined under the Personal Law of
inheritance applicable to the estate of the deceased Member.

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46.

In the event of a Members dismissal from the service of the KASHF for
misconduct, the Trustees shall with-hold and pay to the KASHF such part
of the Accumulated Balance due to a dismissed Member as may be
determined by the KASHF to be compensation payable to the KASHF on
account of loss caused by such misconduct, and pay to the dismissed
Member the remainder of the Accumulated Balance due to him, subject to
the provision that the amount paid to KASHF under this Rule shall not
exceed the KASHF contribution and the annual accretions attributed
thereto.

47.

Except as provided under Rule 46, the Trustees shall pay to a Member the
Accumulated Balance due to him on the day he ceases to be a Regular
Employee of the KASHF. The Member will be entitled to accretions upto
the date he ceases to be a Regular Employee.

Q.

ASSIGNMENT PROHIBITED.

48.

Except as provided under Rule 44, no Member shall transfer, mortgage or

charge the Balance due to him or any part thereof, and the Trustees shall
not recognize or accept any such transfer, assignment, mortgage or charge.
A Member who violates this Rule shall render himself liable to
disciplinary proceedings for misconduct by the KASHF.

R.

KASHF LIEN

49.

Subject to the provision contained in Rule 46, the KASHF shall be titled to
recover from the Accumulated Balance due to a Member the amount of
loss caused to the KASHF on account of the misconduct of the Member as
determined in disciplinary proceedings leading to the dismissal of the
Member, and the Trustees shall forthwith pay such amount to the KASHF.

50.

Except as provided in Rule 46 and 49 and subject to the provisions of the

Income Tax Ordinance, the Trustees shall not make any other deductions
or recoveries from the Accumulated Balance due to a Member or, as the
case may be, to the Members nominee(s) or legal heirs.

S.

DECISION OF THE TRUSTEES FINAL

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51.

Subject to ones right to review before a meeting of all the Trustees, the
decision of the Trustees shall be final and binding upon the Members in
respect of all matters and disputes relating to or connected with the
implementation and interpretation of these Rules or the management and
administration of the Fund or the rights and obligations of the Members
and their nominee (s) and legal heirs or any matter or dispute arising out
of the same.

T.

NOTICE

52.

For the purposes of these Rules, a notice to the Trustees may be sent by
ordinary post or by delivering the same by hand to either the Chairman or
the Secretary of the Trustees while a notice to a member or to his nominee
(s) or legal heirs may be given, in the case of a Member in the service of
the KASHF, by affixing the same on the notice board of the KASHF office
in which such Member is serving and, in any other case, through
registered A.D. post or courier service to the last known residential
address of the Member.

U.

AMENDMENT OF THE RULES.

53.

The Trustees may at any time amend, alter, vary, add to, repeal or
substitute any or all of these Rules subject to:
(i)

consent of a majority of the Members at a meeting specially

convened for this purpose for which fourteen clear days notice has
been given to the Members and at which not less than 50% of the
Members are present either in person or through proxy, and

(ii)

sanction of the KASHF under the signature of its Chief Executive,

and

(iii)

approval of the Commissioner of Income Tax.

V.

MEETING OF THE MEMBERS.

54.

An annual meeting of the Members shall be convened by the Trustees on

or before the 30th September of each year for approval of the audited
accounts.

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55.

The Trustees may also at any time convene a meeting of the Members for
consideration of matters stated in the notice convening the meeting.
Fourteen clear days notice shall be given for a meeting of the Members
stating the purpose (s) for which it is being convened. The Chairman of
the Trustees shall preside over the meeting. Quorum for the meeting shall
be 50% of the Members present in person or through proxy.

56.

The Trustees shall convene a meeting of the Members on requisition made

by 50% of the Members. The provisions of Rule 55 shall mutates mutandis
apply to a meeting convened on requisition of the Members.

W.

CLOSURE OF FUND

57.

In accordance with the provisions of Part-I of the Sixth Schedule to the

Income Tax Ordinance, 2001, the Fund vesting in the Trustees shall not be
recoverable save with the consent of all the beneficiary Members.

X.

INDEMNIFICATION OF THE TRUSTEES.

58.

Every Trustee shall be indemnified by the Fund against all proceedings,

costs and expenses arising out of claims relating to the Fund on the basis
of decisions made, and actions taken, by the Trustee(s) in good faith and
which are not caused by any fraud or willful negligence on the part of the
Trustee (s).