April 18, 2024 (MLN): Automobile financing in Pakistan continued to drop in March, with the loans dropping to Rs239.44bn, a fall of 1.45% MoM compared to Rs242.95bn recorded in February 2024, according to the latest data released by the central bank.
On a year-on-year basis, car financing decreased by 24.45%, as in the same period last year, the figure for financing was reported at Rs316.92bn.
This decline 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.
Going by the data provided by the State Bank of Pakistan (SBP), consumer financing for house building stood at Rs205.76bn by the end of March 2024, down by 4.25% YoY.
Month-wise, the financing for house building has decreased by 0.67% compared to Rs207.14bn incurred in the previous month.
Meanwhile, financing for personal use clocked in at Rs242.05bn, down by 3.63% YoY and 0.03% MoM.
Thereby, the overall credit disbursed to consumers registered a decline of 8.18% YoY to clock in at Rs807.13bn. Compared to the credit of Rs810.79bn in the previous month, consumer financing has recorded a 0.45% MoM drop.
The data released by the central bank further showed that outstanding credit to the private sector rose 0.72% YoY to Rs8.41tr in March 2024.
On a sequential basis, private sector loans reported a drop of 0.16% MoM compared to the credit of Rs8.42tr in February.
Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.84tr in the review period, up by 2.26% YoY while down 0.39% MoM.
The borrowing from the construction sector stood at Rs194.43bn in March, down by 0.59% YoY and 2.09% MoM.
Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs392.15bn in the month under review, up by 15.69% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 2% MoM.
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Posted on: 2024-04-18T18:12:38+05:00
