Auto Financing dips to Rs234.64bn in November

December 19, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs234.64bn in November 2024, witnessing a fall of 0.53% MoM compared to Rs235.88bn recorded in October 2024, according to the latest data released by the central bank.

On a year on year basis, car financing decreased by 8.72%, as in the same period last year, the figure for financing was reported at Rs257.05bn.

This decline is mainly attributed 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.

Going by the data provided by the State Bank of Pakistan (SBP), consumer financing for house building stood at Rs200.21bn by the end of November 2024, down by 3.24% YoY.

Month-wise, the financing for house building has decreased by 0.62% compared to Rs201.46bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs287.01bn, up by 16.68% YoY and 1.89% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 4.99% YoY to clock in at Rs866.02bn. Compared to the credit of Rs861.02bn in the previous month, consumer financing has recorded a 0.58% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 20.84% YoY to Rs9.9tr in November 2024.

On a sequential basis, private sector loans reported a rise of 6.07% MoM compared to the credit of Rs9.33tr in October.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.75tr in the review period, up by 25.53% YoY and 8.05% MoM.

The borrowing from the construction sector stood at Rs202.87bn in November, up by 4.66% YoY and 0.8% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs434.77bn in the month under review, up by 10.52% YoY, and on a sequential basis, the loans to the same sector recorded growth of 6.19% MoM.

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