ISLAMABAD: Automobile financing in Pakistan declined to Rs228 billion in July 2024, marking a 1.09% month-on-month decrease from Rs230.5 billion in June 2024, according to the latest data released by the State Bank of Pakistan (SBP).
Year-on-year, car financing saw a significant drop of 20.06%, with the figure standing at Rs285.19 billion during the same period last year.
The decline in automobile financing is largely attributed to rising interest rates, increasing car prices, stricter regulations for loan acquisition, and higher taxes on the import of automobiles and their parts.
The SBP data also revealed that consumer financing for house building reached Rs202.8 billion by the end of July 2024, reflecting a 3.94% year-on-year decrease. On a monthly basis, housing finance fell by 0.39% from Rs203.58 billion in the previous month, according to Mettis Global report published today.
In contrast, financing for personal use amounted to Rs238.95 billion, representing a 4.51% year-on-year decline, but a slight 0.14% increase compared to the previous month.
Overall, consumer credit disbursement registered a 5.78% year-on-year decline, totaling Rs802 billion. Compared to Rs802.35 billion in the previous month, this represents a marginal 0.04% month-on-month decrease.
Additionally, the central bank’s data showed that outstanding credit to the private sector increased by 3.66% year-on-year to Rs8.29 trillion in July 2024. However, on a month-on-month basis, private sector loans decreased by 3.27% from Rs8.57 trillion in June.
Within the private sector, loans to the manufacturing sector reached Rs4.68 trillion during the review period, showing a 4.62% year-on-year increase, but a 3.24% month-on-month decrease.
Borrowing by the construction sector stood at Rs189.42 billion in July, down by 0.42% year-on-year and 1.78% month-on-month.
Loans to the agriculture, forestry, and fishing sectors rose to Rs395.7 billion in July 2024, reflecting a 14.31% year-on-year increase. However, on a month-on-month basis, loans to this sector declined by 1.29%.
