November 23, 2023 (MLN): Automobile financing in Pakistan has dropped to Rs264.03 billion in October 2023, witnessing a decrease of 23.51% YoY and 3.03% MoM compared to Rs345.19bn in October 2022 and 272.29bn in September 2023, respectively, the latest data released by the central bank showed.
It is pertinent to note that automobile financing has experienced a consecutive decline for sixteen months.
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 October 2023, inching down by 0.65% MoM.
Similarly, on a year-on-year basis, the financing for house building plunged by 2.67% YoY.
Meanwhile, financing for personal use clocked in at Rs246.19bn, down by 4.01% YoY and 0.92% MoM.
Thereby, the overall credit disbursed to consumers declined to Rs829.16bn during the review month, registering a decline of 8.01% YoY and 1.21% MoM.
The outstanding credit to the private sector fell by 0.78% YoY to Rs8.1tr in October 2023.
While it witnessed an increase of 0.99% compared to the credit of Rs8.02tr in September 2023.
Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.51tr in the review period, down by 1.45% YoY and up by 1.89% MoM.
The borrowing from the construction sector stood at Rs194.64bn in October 2023, up by 0.61% MoM and 0.06% YoY compared to the same period last year.
Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs383.51bn in the month under review, up by 15.76% YoY, and on a sequential basis, the loans to the same sector recorded an increase of 2.34% MoM.
