Rate Of Mark-Up Chargeable On Development Loans And Advances By the Federal Government For the Fiscal Year 2025-26
Finance Division's letter dated 23 July 2026 fixes the final mark-up rate on Federal Government development loans and advances at 11.89% per annum for FY 2025-26, including conveyance and house-building loans.
Overview
Finance Division's 23 July 2026 letter communicates final mark-up rates on Federal Government development loans and advances for FY 2025-26, setting the final rate at 11.89% per annum.
Key Highlights
- FY 2025-26 final mark-up rate: 11.89% per annum
- FY 2024-25 rate: 17.74%
- FY 2023-24 rate: 17.84%
- Same 11.89% rate for conveyance and house-building loans for FY 2025-26
Detailed Explanation
Finance Division letter No. 8(2)GS-I/2018-0002 dated 23 July 2026 communicates the final rates of mark-up chargeable on specified development loans and advances by the Federal Government for fiscal year 2025-26. The final rate for FY 2025-26 is 11.89% per annum.
Final Mark-Up Rates For Development Loans And Advances
The letter records the following rates:
| Fiscal Year | Final Mark-Up Rate Per Annum |
|---|---|
| 2023-24 | 17.84% |
| 2024-25 | 17.74% |
| 2025-26 | 11.89% |
Loans And Advances Covered
The letter identifies three categories for which final mark-up rates have been fixed:
- Cash Development Loans to Provincial Governments.
- Loans to local bodies, financial and non-financial institutions and other corporations.
- Capital outlays of the Federal Government in commercial departments.
Rate For Conveyance And House-Building Loans
Paragraph 2 separately confirms that the final mark-up rate for loans and advances for purchase of conveyance and house building is 11.89% per annum for fiscal year 2025-26.
Who Was Addressed By the Letter?
The letter, issued by Muhammad Iqbal Khan, AAO (Borrowing), is addressed to the Controller General of Accounts (CGA), Islamabad. Its copy-for-information list includes Federal and provincial offices and accounts authorities.
Frequently Asked Questions
What is the mark-up rate for development loans and advances in FY 2025-26?
The final rate stated in the letter is 11.89% per annum.
Does the 11.89% rate also apply to house-building and conveyance advances?
Yes. Paragraph 2 fixes the same 11.89% per annum rate for loans and advances for purchase of conveyance and house building for FY 2025-26.
Which financial years are compared in the letter?
The table records 17.84% for FY 2023-24, 17.74% for FY 2024-25 and 11.89% for FY 2025-26.
Related EmployeesDesk Resources
For related guidance, see Handbook for Drawing and Disbursing Officers. For related guidance, see General Financial Rules of the Federal Government.
Official Finance Division Letter
Refer to the original letter for the full categories, rates and distribution list.
Download the Finance Division letter dated 23 July 2026 (PDF)