Auto financing rises by 14.87% YoY in July 2022

August 22, 2022 (MLN): Automobile financing in Pakistan has increased by 14.87% YoY in July 2022 to stand at Rs360.5 billion, compared to Rs313.86bn in the same month last year, the latest data issued by SBP showed today.

However, on a sequential basis, auto financing inched lower by 2% MoM in July 2022 compared to Rs367.8bn in June 2022, mainly due to higher interest rates, an increase in car prices, regulative curbs for acquiring loans, and higher taxes on the import of automobiles and their parts.

To note, the passenger car sales witnessed a massive decline of 50% YoY in the first month of FY23 i.e., July 2022, clocking in at 10,377 units, when compared to 20,669 units recorded in the same month last fiscal year.

Going by the SBP data, consumer financing for house building stood at Rs201.4bn by the end of July 2022, a jump of 89% YoY, mainly due to SBP’s measures to promote housing and construction of buildings in the country. Financing for personal use clocked in at Rs250.46bn, up by 6% YoY, however, on monthly basis, it remained flat.  

This led the overall credit disbursed to consumers to rise to Rs893.22bn during July 2022, registering a growth of 23.79% YoY while on monthly basis, witnessing a drop of 0.76% MoM.

The outstanding credit to the private sector grew by 22.6% YoY to Rs8tr in July compared to Rs6.53tr in the same month last year.

Loans to the manufacturing sector surged by 27% to Rs4.42tr in July from Rs3.47tr in the same period a year ago.

The construction sector increased borrowing to Rs186.69bn in July 2022 compared to Rs144.91bn in the same month of the last year, registering a growth of 28.83% YoY.

Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs325.87bn in the month under review compared to Rs283.4bn in July 2021.

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