Govt Notifies Mark-Up Chargeable on Development Loans and Advances

The federal government has fixed the rate of markup chargeable on development loans and advances for the fiscal year 2021-22.

According to a notification issued by the Finance Division, the final rates of mark-up chargeable on the following categories have been fixed by the Federal Government:

• Cash Development Loans to the Provincial Governments.
• Loans to local bodies, financial and non-financial institutions, and other corporations
• Capital outlays of the Federal Government in the commercial departments.

The notification further stated that in the case of loans and advances for the purchase of conveyance and house building, the final rate of markup, i.e. 11.20 percent per annum, has been fixed for the fiscal year 2021-22.