February 22, 2023 (MLN): Automobile financing in Pakistan has dropped by 5.75% YoY and 1.62% MoM in January 2023 to stand at around 332 billion, compared to Rs352.24bn in January 2022 and Rs337.47bn in December 2022, the latest data issued by SBP showed today.
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 sale of passenger cars plunged by 64.55% YoY and 56% MoM to clock in at 6021 units in January 2023, compared to 16,985 in January 2022 and 13,780 in December 2022,
Going by the SBP data, consumer financing for house building stood at Rs215bn by the end of January 2023, a jump of 42.24% 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 Rs254.45bn, up by 4.15% YoY and 1.12% MoM compared to Rs244.3bn in January 2022 and Rs251.62bn in December 2022.
This led the overall credit disbursed to consumers to rise to Rs894.84bn during January 2023, registering a growth of 9% YoY while on monthly basis, it remained almost stable.
The outstanding credit to the private sector grew by 12.8% YoY to Rs8.4tr in January 2023 compared to Rs7.46tr in the same month last year. On the other hand, the outstanding credit to the private sector shrank by 2.87% MoM compared to Rs8.66tr.
Loans to the manufacturing sector surged by 14.55% YoY to Rs4.78tr in the review period while on monthly basis, the same witnessed a drop of 3.36% MoM.
The borrowing from the construction sector increased to Rs192bn in January 2023, registering a growth of 12.85% YoY compared to Rs170bn in the same month of the last year.
Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs339.69bn in the month under review, up by 11.78% YoY from Rs303.87bn in January 2022.
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Posted on: 2023-02-22T12:28:32+05:00
