ISLAMABAD: In the last three months, Pakistani banks have provided a record 861 billion rupees amount as loans for auto financing in just three months, Sept-Nov 2023.
In November 2023, auto financing in Pakistan fell to Rs257 billion, marking a 24.43% yearly and 2.64% monthly decline from Rs340 billion in November 2022 and Rs264.03 billion in October 2023, respectively, according to the latest data from the central bank.
This downward trend, the seventh consecutive monthly drop, is primarily linked to higher interest rates, increased car prices, stricter loan acquisition regulations, and elevated taxes on automobile imports and parts.
Consumer financing for home construction reached Rs207 billion by November’s end, down 3.15% yearly. Month-wise, home construction financing remained relatively steady at Rs207 billion.
Financing for personal use amounted to Rs246 billion, marking a 3.86% yearly and 0.08% monthly decrease.
Overall consumer credit disbursed decreased to Rs824.9 billion during the review month, showcasing an 8.47% yearly and 0.51% monthly decline.
Outstanding credit to the private sector slightly decreased by 0.15% yearly, reaching Rs8.19 trillion in November 2023. However, it saw a 1.13% monthly increase from Rs8.1 trillion in October 2023.
Within private sector credit, loans to the manufacturing sector were Rs4.58 trillion in the review period, down 0.04% yearly but up 1.69% monthly.
Borrowing from the construction sector stood at Rs193.85 billion in November 2023, down 1.58% yearly and 0.41% monthly.
Looking ahead, data reveals that loans to the agriculture, forestry, and fishing sectors increased to Rs393.4 billion, rising by 16.47% yearly and 2.58% sequentially.
I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.
