March 21, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs325.86 billion in February 2023, witnessing a decrease of 8.64% YoY and 1.84% MoM as compared to Rs356.7bn in February 2022 and Rs332bn in January 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 80% YoY in February 2023, clocking in at 3,642 units compared to 18,054 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 Rs214.8bn by the end of January 2023, a jump of 35% YoY mainly due to SBP’s measures to promote housing and construction of buildings in the country.
However, on monthly basis, the financing for house building remained almost flat.
Meanwhile, financing for personal use clocked in at Rs254.25bn, up by 5.88% YoY while on monthly basis, the financing for the same category remained relatively unchanged.
This led the overall credit disbursed to consumers to rise to Rs889bn during February 2023, registering a growth of 7.1% YoY while on monthly basis, it remained almost stable.
The outstanding credit to the private sector grew by 11.12% YoY and 2.38% MoM to Rs8.6tr in February 2023 compared to Rs7.73tr in February 2022 and Rs8.4tr in January 2023.
Loans to the manufacturing sector surged by 13.47% YoY to Rs4.8tr in the review period while on monthly basis, the loans to the same sector remained unchanged.
The borrowing from the construction sector increased to Rs193bn in February 2023, registering a growth of 15.55% YoY compared to Rs167bn in the same month of the last year.
Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs342.8bn in the month under review, up by 11.08% YoY from Rs308.06bn in February 2022 while on a sequential basis, the loans to the same sector remained relatively flat.
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Posted on: 2023-03-21T11:41:15+05:00
