The federal government increased the interest rates on loans and advancesfor developmental purposes.The Ministry of Finance issued a notificationfor an increase in the mark-up rate for 2023, raising it from 11.20% to15.58%.
According to the announcement, the interest rate will also apply toprovincial governments for development loans, local bodies, the financialand non-financial sectors, and corporations. Additional interest rates willalso be applied in federal government commercial departments.
It should be noted that the State Bank of Pakistan (SBP) had decided onSeptember 14th to maintain the overall interest rate at 22%.
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The State Bank has stated that this decision is based on the latestinflation figures. In May, inflation was at its highest level at 31%, butit decreased to 27.4% in August, suggesting the possibility of furtherreduction in inflation.
