March 18, 2022 (MLN): Despite higher interest rate regulative curbs, automobile financing in Pakistan has increased by 1.3% MoM to Rs356.7 billion in February 2022, Central bank data showed today.
Similarly, compared to the same month last year, Car financing volume was up by 31% from Rs272.5bn in February 2021, due to increased consumers’ appetite led by the introduction of new models and brands by new entrants, especially in the category of cars of or above 1,000cc engines and jeep (Sports Utility Vehicles/SUVs) segments which provides people with a wide variety of locally-assembled cars.
To note, the sale of passenger cars also witnessed a rise of 6% MoM during February 2022, clocking in at 18,054 units as opposed to 16,985 units sold in January 2022, low base and renewed demand for low-end cars due to fuel efficiency. On yearly basis, car sales saw an upsurge of 33% YoY when compared to 13,570 units sold in February 2021.
Going by the SBP data, for house building, banks’ financing stood at a record level of Rs159 billion by the end of February 2022, a jump of 78% YoY and 5% MoM, mainly due to SBP’s measures to promote housing and construction of buildings in the country. Financing for personal use stood at Rs240bn, up by 6% YoY, while declining by 2% MoM.
This led the overall credit disbursed to consumers to clock in at Rs829.4bn during February 2022, registering a growth of 28% YoY and 1% MoM.
