June 20, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs300.44 billion in May 2023, witnessing a decrease of 18.06% YoY and 2.8% MoM as compared to Rs366.66bn in May 2022 and Rs309.09bn in April 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.
To note, in the same month, the passenger car sales witnessed a significant plunge of around 79.72% YoY in May 2023, clocking in at 3,934 units compared to 19,395 units recorded in the same month last fiscal year, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed.
Going by the SBP data, consumer financing for house building stood at Rs212.73bn by the end of May 2023, a jump of 13.19% 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 0.15%.
Meanwhile, financing for personal use clocked in at Rs252.15bn, up by 1.96% YoY while on a monthly basis, the financing for the same category inched up by 0.81%.
This led the overall credit disbursed to consumers to rise to Rs864.67 bn during the review month, registering a meager decline of 1.86% YoY and 0.36% MoM.
The outstanding credit to the private sector grew by a meager 0.97% YoY to Rs8.25tr in May 2023.
Loans to the manufacturing sector increased by 2.81% YoY to Rs4.52tr in the review period while on a monthly basis, the loans to the same sector dropped by 3.34% MoM.
The borrowing from the construction sector increased to Rs190.69bn in May 2023, increased by 6.16% YoY, and decreased by 1.98% MoM.
Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs337.95bn in the month under review, up by 4.87% YoY while on a sequential basis, the loans to the same sector recorded a meager drop of 0.42% MoM.
Copyright Mettis Link News
Posted on: 2023-06-20T10:59:53+05:00
