Pakistan’s automobile financing plummeted by 25.82% year-on-year (YoY) to Rs246.26 billion in January 2024, from Rs331.98 billion in January 2023, and a 1.98% month-on-month drop from December 2023.
According to the data released by the State Bank of Pakistan (SBP), this decline represents the 19th consecutive monthly fall in automobile financing, with a total reduction of Rs114.29 billion.
The decrease is attributed to higher interest rates, increased car prices, stricter loan regulations, and elevated taxes on imported vehicles and parts.
As per the SBP data, consumer financing in other sectors also experienced downturns. House building finance fell to Rs207.62 billion, a 3.44% decrease year-on-year, while financing for personal use dropped to Rs243.1 billion, declining by 4.47% year-on-year.
Consequently, total consumer credit disbursed declined by 9.04% year-on-year to Rs813.96 billion.
The overall outstanding credit to the private sector slightly decreased by 0.76% year-on-year to Rs8.35 trillion.
However, loans to the manufacturing sector marginally increased by 0.33% year-on-year to Rs4.81 trillion.
In contrast, loans to the agriculture, forestry, and fishing sectors rose significantly by 16.95% year-on-year to Rs397.27 billion.
