The Ministry of Finance has set the markup rate for development loans and advances at 17.74% per annum for the fiscal year 2024–25, marking a slight decrease from the previous year.
As per the notification issued by the Finance Division, this rate applies to cash development loans to provincial governments, loans to local bodies, financial and non-financial institutions, as well as capital outlays of the federal government in commercial departments. It also covers loans and advances for purchasing a conveyance and house building.
This new rate represents a small reduction from 17.84% in FY 2023–24 but is still higher compared to the 15.58% rate set in FY 2022–23.Â
The notification has been sent to relevant government bodies and financial institutions, including the Controller General of Accounts, Auditor General of Pakistan, and finance departments across provinces.
