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Auto financing drops to Rs317bn in March

Auto financing drops by 21.13% YoY to Rs278bn in August 2023
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May 04, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs317 billion in March 2023, witnessing a decrease of 12.83% YoY and 2.74% MoM as compared to Rs363.55bn in March 2022 and Rs325.86bn in February 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 68.41% YoY, clocking in at 7,201 units compared to 22,799 units recorded in the same month last fiscal year, the latest data from the Pakistan Automotive Manufacturers Association (PAMA) showed today.

Going by the SBP data, consumer financing for house building stood at Rs215bn by the end of March 2023, a jump of 26.23% 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.

Meanwhile, financing for personal use clocked in at Rs251.18bn, up by 4.12% 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 Rs879bn during the review month, registering a meager growth of 3.23% YoY while on a monthly basis, it remained almost stable.

The outstanding credit to the private sector grew by 6.7% YoY to Rs8.52tr in March 2023.

Loans to the manufacturing sector surged by 9.02% YoY to Rs4.72tr in the review period while on a monthly basis, the loans to the same sector dropped by 1.5% MoM.

The borrowing from the construction sector increased to Rs195.58bn in March 2023, increased by 5.5% YoY and 1.44% MoM.

Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs339bn in the month under review, up by 7.73% YoY while on a sequential basis, the loans to the same sector recorded a meager drop of 1.12% MoM.

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Posted on: 2023-05-04T11:30:56+05:00