The Islamabad Real Estate (Regulation and Development) Act, 2021 Section 2
the rates of interest payable by the developer or the allottee, as the case may be. Explanation - For the purpose of this clause, - (i) the rate of interest chargeable from the allottee by the developer, in case of default in the payment scheme agreed upon in the agreement, shall be equal to the rate of interest which the developer shall be liable to pay the allottee, in case of default; and (ii) the interest payable by the developer to the allottee shall be from the date the developer did not deliver the possession of the premises/ real estate project as per the agreement between the Seller developer and buyer allottee. (zd) "internal development works" in relation to a real estate project means roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and silage water, solid waste management and disposal, water conservation, energy management, fire protection and fire safety requirements, social infrastructure such as educational, health and other public amenities or any other work in a project for its benefit, as per sanctioned plans
Explanation
In real estate regulation, interest refers to the financial penalties or payments due between a developer and a buyer in cases of payment default or delay in the delivery of possession, ensuring reciprocal liability.