Auto financing in Pakistan rises to Rs242bn in January

February 18, 2025 (MLN): Automobile financing in Pakistan has increased to Rs241.6bn in January 2025, witnessing a rise of 2.61% MoM compared to Rs235.45bn recorded in December 2024, according to the latest data released by the central bank.

On a year on year basis, car financing decreased by 1.89%, as in the same period last year, the figure for financing was reported at Rs246.26bn.

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 Rs200.02bn by the end of January 2025, down by 3.66% YoY.

Month-wise, the financing for house building has increased by 0.15% compared to Rs199.73bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs252.95bn, up by 4.06% YoY while down 11.25% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 3.74% YoY to clock in at Rs844.37bn. Compared to the credit of Rs867.97bn in the previous month, consumer financing has recorded a 2.72% MoM drop.

The data released by the central bank further showed that outstanding credit to the private sector rose 15.95% YoY to Rs9.68tr in January 2025.

On a sequential basis, private sector loans reported a drop of 8.49% MoM compared to the credit of Rs10.58tr in December.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.67tr in the review period, up by 18.02% YoY while down 9.12% MoM.

The borrowing from the construction sector stood at Rs212.54bn in January, up by 11.77% YoY while down 2.84% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs441.36bn in the month under review, up by 11.1% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 4.22% MoM.

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