ISLAMABAD: The caretaker federal government has fixed rate of mark-up for chargeable on development loans and advances to by the federal government for the fiscal year 2022-23.

According to a notification by the budget wing of the Finance Ministry, final rates of mark-up chargeable have been fixed by the federal government for categories; (i) cash development loans to the provincial governments; (ii) loans to local bodies, financial and non-financial institutions and other Corporations; (iii) capital outlays of the federal government in the commercial departments.

Loans & advances: FD fixes FY22 mark-up at 11.20pc

Rates of Mark-up (Per Annum) for fiscal year 2020-21 was 10.30 percent followed by in 2021-22 11.20 percent and the federal government has fixed the final rate of mark-up for fiscal year 2022-23 at 15.58 percent.

In case of loans and advances for purchase of conveyance and House Building, the final rate of mark-up, i.e., 15.58 % per annum, has been fixed for the fiscal year 2022-23.

Copyright Business Recorder, 2023