ISLAMABAD: The Ministry of Finance has notified the rates of mark-up chargeable on development loans and advances for the fiscal year 2024–25, reflecting a slight decrease from the previous year.
According to the notification issued by the Finance Division, the federal government has fixed the mark-up rate at 17.74 percent per annum for the following categories: (i) Cash Development Loans to Provincial Governments, (ii) Loans to Local Bodies, Financial and Non-Financial Institutions, and Other Corporations and (iii) Capital Outlays of the Federal Government in Commercial Departments.
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This rate also applies to loans and advances extended for the purchase of conveyance and house building.
The mark-up rate shows a marginal decline from 17.84 per cent in fiscal year 2023–24, though it remains significantly higher than the 15.58 percent rate recorded in fiscal year 2022–23. The notification has been circulated to key government departments and financial institutions, including the Controller General of Accounts, Auditor General of Pakistan, and finance departments across all provinces.
Copyright Business Recorder, 2025
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