The federal government has significantly reduced the mark-up rate on development loans and advances to provincial governments, local bodies, and state-owned entities for fiscal year 2025-26 to 11.89%. This marks a substantial drop from 17.74% in FY25, driven by the central bank's policy rate declining from a peak of 22% to 11.5%. These rates apply to various cash development and re-lent foreign loans, impacting government revenue and borrowing costs. This reduction in borrowing costs for public entities could signal easing monetary policy, potentially influencing inflation expectations and the USD/PKR rate, which in turn affects local gold prices.
بحوالہ / Source: www.dawn.com