September 20, 2022 (MLN): Automobile financing in Pakistan has increased by 8% YoY in August 2022 to stand at Rs352.5 billion, compared to Rs325.8bn in the same month last year, the latest data issued by SBP showed today.
However, on a sequential basis, auto financing inched lower by 2% MoM in August 2022 compared to Rs360.5bn in July 2022, mainly due 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.
To note, in the same month, the passenger car sales witnessed a massive decline of 50% YoY, clocking in at 8,980 units, when compared to 17,899 units recorded in the same month last fiscal year. On a sequential basis, the total sales of passenger cars witnessed a decline of 13% in August 2022 from 10,378 units in July 2022.
Going by the SBP data, consumer financing for house building stood at Rs206bn by the end of August 2022, a jump of 84% YoY and 2% MoM, mainly due to SBP’s measures to promote housing and construction of buildings in the country. Meanwhile, financing for personal use clocked in at Rs250.76bn, up by 5% YoY, however, on monthly basis, it remained flat.
This led the overall credit disbursed to consumers to rise to Rs893.4bn during August 2022, registering a growth of 20% YoY while on monthly basis, it remained stable.
The outstanding credit to the private sector grew by 22% YoY to Rs8.2tr in August compared to Rs6.8tr in the same month last year.
Loans to the manufacturing sector surged by 28% to Rs4.5tr in August from Rs3.5tr in the same month a year ago.
The borrowing from the construction sector increased to Rs188.7bn in August 2022 compared to Rs144.4bn in the same month of the last year, registering a growth of 31% YoY.
Meanwhile, loans to the agriculture, forestry, and fishing sector rose to Rs323.9bn in the month under review, up by 14% YoY from Rs284.9bn in August 2021.
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Posted on:2022-09-20T13:11:37+05:00
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