Islamabad: The federal government has announced the interest rates for cash development loans provided to provincial governments over the past three years.
The federal government has set interest rates ranging from 11.20% to 17.84% on cash development loans given to provincial governments, local governments and their financial and non-financial institutions, corporations, as well as on loans for the purchase of vehicles, motorcycles, and house building obtained by government employees.
This includes capital outlay for federal government commercial departments.
The Ministry of Finance’s Budget Wing has formally issued a notification detailing that for cash development loans given to provincial governments, and loans to local governments and their institutions, the interest rates will be 11.20% for the fiscal year 2021-22, 15.58% for fiscal year 2022-23, and 17.84% for the fiscal year 2023-24.
Additionally, the final interest rate for loans obtained for vehicle purchases and house building for the fiscal year 2023-24 will also be set at 17.84%.