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79. Investment of moneys of a recognised provident fund.- (1) Where the employer is not company as defined in clause [(7)] of section 2 of the Companies Ordinance, 1984, the contributions made by employees after the date of recognition of a provident fund and the interest on the accumulated balance of such contributions shall be wholly invested either in securities of the nature specified in clauses (2), (b), (c), (d) or (e) of section 20 of the Trusts Act, 1882, and payable both in respect of capital and interest in Pakistan or in a Post Office Savings Bank Account in Pakistan or deposited with the National Development Finance Corporation.

(2) Where the employer is a company as defined in clause (7) of section 2 of the Companies Ordinance, 1984, all moneys contributed to a provident fund (whether by the company or by the employees or accruing by way of interest or otherwise to such fund) shall be wholly invested in accordance with the provisions of sub-section (2) of section 227 of the Companies Ordinance, 1984, or deposited with the National Development Finance Corporation or with the priori approval of the Board, in purchase of shares of a public limited company offered for sale inviting public offer by the Federal Government so, however, that the securities and deposits in which the contributions made by the employees after the date of recognition of a provident fund and the interest on the accumulated balance on such contributions are invested or deposited are payable in respect of capital, deposit and interest in Pakistan.

80. Permitted withdrawal.- Subject to the provisions of rules 81, 82, 83 and 84 withdrawals by employees from accumulated balance may be allowed by the trustees of a recognised provident fund in the following circumstances, namely:-

(a) to pay expenses in connection with the illness of a subscriber or a member of his family;

(a) 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 funds;

(b) to pay for the overseas passage by reason of health or education of a subscriber or a member of his family;

(c) to pay expenses in connection with marriages, funerals or ceremonies, which, by the religion of the subscriber, it is incumbent upon him to perform and in connection with which it is obligatory that expenditure should be incurred;

(c) to pay expenses in connection with the performance of Haj by the subscriber;

(d) 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;

(dd) to meet the expenditure on repairs, renovation or extension of a residential house belonging to the subscriber;

(e) to pay premia on policies of insurance on the life of the subscriber or of his wife provided that the policy is assigned to the trustees of the fund or at their discretion deposited with them and that the receipt granted by the insurance company for the premia are from time to time handed over the trustees for inspection by the Deputy Commissioner of Income Tax

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(e) to purchase share of a public limited company for investment under rule 79;

(f) in the case of a subscriber who has attained the age of fifty years on the date on which withdrawal is permitted-
(i) to meet the expenditure on the purchase of a house or construction of a house on land owned by him or a member of his family any where in Pakistan:

Provided that the first instalment of the withdrawal shall be allowed to be drawn only after an agreement has been executed between the subscriber and the trustees of the fund to the effect that the subscriber shall expend the full amount of the said advance towards the purchase or the building of a house as claimed at the earliest possible opportunity and if the actual amount so expended is less than the amount of permitted withdrawal the subscriber 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 subscriber is still in service, the subscriber shall forthwith repay into the fund the entire amount of the withdrawal together with interest accrued thereon in lumpsum;

(ii) to meet expenditure on the purchase of agricultural land from Government:
Provided that the first instalment of the withdrawal shall be allowed to be drawn only after an agreement has been executed between the subscriber and the trustees of the fund to the effect that the subscriber shall expend the full amount toward 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 subscriber shall repay the difference in to the fund forthwith and further that if the said piece of land is sold or alienated by its owner to any other person while the subscriber is in service, the subscriber shall forthwith repay into the fired the entire amount of the withdrawal together with interest accrued thereon in lump-sum;

(iii) to repay loan taken from a financial institution:
Provided that the subscriber 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 forth with become repayable to the fund in a lump-sum; and

(iv) without assigning any reason; and

(g) in the case of an employee proceeding on leave preparatory to retirement, at the discretion of the trustees of the 'fees, without assigning any reason:
Provided that where an employee 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 in to the fund in a lump-sum.

81. Limits on Withdrawals.- (1) Withdrawals permitted under these rules shall not exceed the following limits, namely:-
(i) in the case of withdrawals permitted under clauses (a), (a), (b) and (c), of rule 80, six months salary of the subscriber or the total of accumulated balance to his credit, whichever is the less;

(i) in the case of withdrawals permitted under clause (cc) of rule 80, six months salary of the subscriber or twenty five thousand rupees or the total of the accumulated balance to his credit, whichever is the lowest;

(iia) in the case of withdrawals permitted under clause (d) of rule 80, thirty-six months salary of the subscriber or the total of the accumulated balance to his credit, whichever is the less;

(iib) in the case of withdrawals permitted under clause (dd) of rule 80, six months salary of the subscriber or the total of the accumulated balance to his credit, whichever is the less;

(iic) in the case of withdrawals permitted under clause (e) of rule 80, eighteen months salary of the subscriber 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:
(iid) in case of withdrawals permitted under clause (ee) of rule 80, six months salary of the subscriber or ten thousand rupees or the total of accumulated balance to his credit, whichever is the lowest.

(iii) in the case of withdrawals permitted under sub-clauses (i), (ii) and (iii) of clause (fi of rule 80, twenty-four months salary of the subscriber or eighty per cent of the accumulated balance to his credit whichever is the less;

(iv) in the case of withdrawals permitted under sub-clause (iv) of clause (f) of rule 80, sixty per cent of the accumulated balance to the credit of the subscriber; and

(v) in the case of withdrawals permitted under clause (g) of rule 80, ninety per cent of the accumulated balance to the credit of the subscriber.

(2) For the purpose of rule 80, and this rule:-
(a) "accumulated balance" means the total of the accumulations of exempted contributions and exempted interest contained in the balance to the credit of the employee at the time of withdrawals;

(b) "family" means the employee's wife, legitimate children, step children, parents, sisters and brothers who reside with him and are wholly dependent on him; and

(c) "salary" means the salary as defined in clause (b) of rule 14 of Part I of the Sixth Schedule to the Ordinance to which the employee is entitled at the time when the withdrawal is granted.

82. Second withdrawals.- (1) Save as provided in sub-rules (2), (3), (4) and (5), no second withdrawal from a recognised provident fund shall be permitted until the sum first withdrawn has been fully repaid.

(2) A withdrawal may be permitted for the purposes specified in clause (e) of rule 80, notwithstanding that the sum withdrawn for any other purpose has not been repaid.

(3) Subsequent withdrawals for purposes specified in clause (e) of rule 80, may be permitted notwithstanding that the sum or sums previously drawn for the same purpose has or have not been repaid.

(4) A withdrawal for any one of the purposes specified in rule 80 other than that specified in clause (a) of that rule may be permitted notwithstanding that sum or sums withdrawn for the purposes of clause (e) of the same sub-rule has or have not been repaid.

(5) A withdrawal for any of the purposes specified in rule 80 other than those specified in clauses (d) and (e) of that rule may be permitted notwithstanding that the sum withdrawn for the purposes of clause (d) of the same rule has not been repaid.

83. Repayment of amounts withdrawn.- (1) Where any withdrawal is allowed for a purpose specified in clause (d), (e), ,(ee), (f) or (g) of rule 80 the amount withdrawn need not be repaid.

(2) Where a withdrawal is allowed for a purpose other than those referred to in sub-rule (1), the amount withdrawn shall be repaid in not more than forty-eight equal monthly instalments and shall bear mark-up in accordance with the following schedule, namely:-

Provided that at the discretion of the trustees of the fund, mark-up may be recovered on the amount withdrawn or the balance thereof outstanding from time to time at 1 per cent above the rate which is payable for the time being on the balance in the fund to the credit of the subscriber:

Provided further that where an employee contributing to the fund opts not to receive mark-up accruing on his accumulated balance, no mark-up shall be charged on the amount withdrawn by him from the fund.

(3) The employer shall deduct such instalments payable under sub-rule (2) from the employee's salary and pay them to trustees, such deductions commencing from the second monthly payment made after the withdrawal or, in the case of an employee on leave without pay, from the second monthly instalment after his return to duty.

(4) In the case of default of repayment of instalments under sub-rules (2) and (3), the Commissioner may at his discretion, order that the amount of withdrawal or the amount outstanding shall be added to the total income of the employee for the year in which the default occurs and the Deputy Commissioner of Income Tax shall assess the employee accordingly.

84. Power to relax conditions.- Notwithstanding anything contained in rules 80, 81, 82 or 83 the Commissioner may in special circumstances to be recorded in writing relax the conditions for withdrawals from and repayment to the fund.

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