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Mettis Global News

Auto financing in Pakistan rises to Rs235bn in December

Car sales rise 61.4% in January 2025
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January 17, 2025 (MLN): Automobile financing in Pakistan has increased to Rs235.45bn in December 2024, witnessing a rise of 0.35% MoM compared to Rs234.64bn recorded in November 2024, according to the latest data released by the central bank.

On a year-on-year basis, car financing decreased by 6.3%, as in the same period last year, the figure for financing was reported at Rs251.25bn.

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 Rs199.73bn by the end of December 2024, down by 4.04% YoY.

Month-wise, the financing for house building has decreased by 0.24% compared to Rs200bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs285bn, up by 16.61% YoY while down 0.7% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 6.08% YoY to clock in at Rs867.97bn. Compared to the credit of Rs866bn in the previous month, consumer financing has recorded a 0.23% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 24% YoY to Rs10.58tr in December 2024.

On a sequential basis, private sector loans reported a rise of 7% MoM compared to the credit of Rs10tr in November.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs6.24tr in the review period, up by 28.71% YoY and 8.43% MoM.

The borrowing from the construction sector stood at Rs218.75bn in December, up by 9.23% YoY and 7.83% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs460.81bn in the month under review, up by 10.41% YoY, and on a sequential basis, the loans to the same sector recorded growth of 6% MoM.

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Posted on: 2025-01-17T21:14:12+05:00