Auto financing in Pakistan drops for 17th consecutive month, stands at Rs257bn in November

December 19, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs257.06 billion in November 2023, witnessing a decrease of 24.43% YoY and 2.64% MoM compared to Rs340.17bn in November 2022 and Rs264.03bn in October 2023, respectively, the latest data released by the central bank showed.

It is important to mention that this marks the seventh consecutive monthly decline in automobile financing.

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.

Going by the SBP data, consumer financing for house building stood at Rs206.93bn by the end of November 2023, down by 3.15% YoY.

Month-wise, the financing for house building has remained relatively stable compared to Rs206.93bn.

Meanwhile, financing for personal use clocked in at Rs245.99bn, down by 3.86% YoY and 0.08% MoM.

Thereby, the overall credit disbursed to consumers declined to Rs824.9bn during the review month, registering a decline of 8.47% YoY and 0.51% MoM.

The outstanding credit to the private sector inched down by 0.15% YoY to Rs8.19tr in November 2023.

While it witnessed an increase of 1.13% MoM compared to the credit of Rs8.1tr in October 2023.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.58tr in the review period, down by 0.04% YoY and up by 1.69% MoM.

The borrowing from the construction sector stood at Rs193.85bn in November 2023, down by 1.58% YoY and 0.41% MoM compared to the previous month.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs393.4bn in the month under review, up by 16.47% YoY, and on a sequential basis, the loans to the same sector recorded an increase of 2.58% MoM.

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