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Auto financing drops to Rs309bn in April

Car sales surge to 7
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May 22, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs309.09 billion in April 2023, witnessing a decrease of 15.73% YoY and 2.46% MoM as compared to Rs366.79bn in April 2022 and Rs316.9bn in March 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 massive decline of around 84.73% YoY in April 2023, clocking in at 2,844 units compared to 18,626 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 Rs213.04bn by the end of April 2023, a jump of 19.15% 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, marking a meager decline of 0.86% MoM.

Meanwhile, financing for personal use clocked in at Rs250.13bn, up by 2.25% YoY while on a monthly basis, the financing for the same category remained relatively unchanged.

This led the overall credit disbursed to consumers to rise to Rs867.76bn during the review month, registering a meager growth of 0.15% YoY while on a monthly basis, it declined by 1.28%.

The outstanding credit to the private sector grew by 4.85% YoY to Rs8.44 trillion in April 2023.

Loans to the manufacturing sector surged by 6.79% YoY to Rs4.68tr in the review period while on a monthly basis, the loans to the same sector dropped by 0.98% MoM.

The borrowing from the construction sector stood at Rs194.54bn in April 2023, increased by 9.18% YoY and falling by 0.53% MoM.

Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs339.38bn in the month under review, up by 5.87% YoY while on a sequential basis, the loans to the same sector recorded a meager rise of 0.12% MoM.

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Posted on: 2023-05-22T16:55:11+05:00