January 20, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs251.25 billion in December 2023, witnessing a decline of 25.55% YoY and 2.26% MoM compared to Rs333.747bn in December 2022 and Rs257.06bn in November 2023, respectively, the latest data released by the central bank showed.

It is important to mention that this marks the eighteenth 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 Rs208.15bn by the end of December 2023, down by 3.17% YoY.

Month-wise, the financing for house building has inched up compared to Rs206.92bn reported in the previous month.

Meanwhile, financing for personal use clocked in at Rs244.41bn, down by 3.84% YoY and 0.64% MoM.

Thereby, the overall credit disbursed to consumers declined to Rs818.22bn during the review month, registering a fall of 9.09% YoY and 0.81% MoM.

The outstanding credit to the private sector inched down by 1.44% YoY to Rs8.54tr in December 2023.

While it witnessed an increase of 4.26% MoM compared to the credit of Rs8.19tr in November 2023.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.85tr in the review period, down by 2.15% YoY.

Comparison on a monthly basis reflects a growth of 5.76% MoM, as in November the loans to this sector stood at Rs4.58tr.

The borrowing from the construction sector stood at Rs200.28bn in December 2023, up by 0.45% YoY and 3.32% MoM compared to the previous month.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs417.37bn in the month under review, up by 19.27% YoY, and on a sequential basis, the loans to the same sector recorded an increase of 6.09% MoM.

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Posted on: 2024-01-20T13:15:36+05:00