Auto financing drops by 20.90% YoY to Rs285.19bn in July

August 29, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs285.19 billion in July 2023, witnessing a decrease of 20.90% YoY and 2.91% MoM as compared to Rs360.55bn in July 2022 and Rs293.73bn in June 2023, respectively, the data issued by the central bank revealed on Monday.

This decrease 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 SBP data, consumer financing for house building stood at Rs211.11bn by the end of July 2023, a jump of 4.82% YoY mainly due to SBP’s measures to promote housing and construction of buildings in the country.

However, on a monthly basis, the financing for house building remained almost flat, with a decline of 0.57%.

Meanwhile, financing for personal use clocked in at Rs250.24bn, down by 0.09% YoY, Similarly, on a monthly basis, the financing for the same category went down by 0.95%.

This led the overall credit disbursed to consumers to rise to Rs851.22bn during the review month, registering a decline of 4.70% YoY and 0.99% MoM.

The outstanding credit to the private sector fell by 0.06% YoY and 1.12% MoM to Rs8.19tr in July 2023.

Loans to the manufacturing sector increased by 1.12% YoY to Rs4.48tr in the review period, while on a monthly basis, the loans to the same sector went down by 1.44% MoM.

The borrowing from the construction sector stood at Rs190.23bn in July 2023, increasing by 1.89% YoY, while decreasing by a meager 0.01% MoM.

Meanwhile, loans to the agriculture, forestry, and fishing sectors rose to Rs346.17bn in the month under review, up by 6.23% YoY, and on a sequential basis, the loans to the same sector recorded an increase of 0.53% MoM.

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