The Finance Division issued a Notification on 27-09-2023 in connection with Rates of Mark Up Chargeable on Loans and Advances. The government of Pakistan fixes the rate of markup chargeable on development loans and advances. The federal government for the fiscal year 2022-2023 approves these rates.
Revised Rates of Mark Up Chargeable on Development Loans and Advances 2023
According to the latest rates for the fiscal year 2022-2023, there is an increase of 4.38%. The rates of markup in the previous 02- to 03 years are lesser than the current rate. In the case of loans and advances for the purchase of Conveyance and Housing Building, the final rate of markup is 15.58%% per annum. This rate is only for the 2022-2023 fiscal year.
| Sr. No | Fiscal Years | Rates of Markup Chargeable on Development Loans and Advances |
| 1. | 2020 to 2021 | 10.30% |
| 2. | 2011to 2022 | 11.20% |
| 3. | 2022 to 2023 | 15.58% |
The final rate of markup per annum for the fiscal year 2020-2021 is 10.30%. For the next fiscal year, 2021 20232 the government of Pakistan will increase this rate by 0.90%. For the current year 2022-2023, the chargeable markup rate increases to 4.38%.
Categories of Loans
- The cash development loans to provincial governments
- Loan to local bodies/ financial and non-financial institutions and other corporations
- Capital outlay of the Federal Government in the Commercial Department.
New Markup Rates
The Assistant Account Officer Borrowing Section issues a specific notification to the Controller General of Accounts Islamabad about the main subject. The main subject is to fix the rate of markups as follows:
- For the fiscal year 2020-2021, the final rate of markup per annum is 10.30%.
- 20% is the concluded rate of marker per annum for the fiscal year 2021-2022.
- For the current fiscal year of 2022-2023, the recorded rate of markup per annum is 15.58%.
- All the Provincial Governments/ Financial and non-financial Institutions and corporations must note.
You may also like: GP Fund Interest Rates 2022-23
