Auto financing plummets 25% YoY in February

March 15, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs242.95 billion in February 2024, witnessing a decline of 25.44% YoY and 1.34% MoM compared to Rs325.86bn in February 2023 and Rs246.26bn in January 2024, respectively, the latest data released by the central bank showed.

It is important to mention that this marks the twentieth consecutive monthly decline in automobile financing. The total decline since the past 20 months stands at Rs124.9bn.

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 Rs207.14bn by the end of February 2024, down by 3.6% YoY as against Rs214.9bn in the same month of last year.

Month-wise, the financing for house building has inched down by 0.23% MoM compared to Rs207.62bn reported in the previous month.

Meanwhile, financing for personal use clocked in at Rs242.12bn, down by 4.77% YoY and 0.4% MoM.

Thereby, the overall credit disbursed to consumers declined to Rs810.8bn during the review month, registering a fall of 8.8% YoY and 0.39% MoM.

Meanwhile, the outstanding credit to the private sector inched up by 0.01% YoY and 0.82% MoM to Rs8.42 trillion in February  2024.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.85tr in the review period, up slightly by 1.13% YoY.

Moreover, comparison on a monthly basis reflects an increase of 1.03% MoM, as in January the loans to this sector stood at Rs4.81tr.

The borrowing from the construction sector stood at Rs198.57bn in February 2024, up by 3% YoY and 4.43% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs400.15bn in the month under review, up significantly by 16.73% YoY, and on a sequential basis, the loans to the same sector recorded a rise of 0.73% MoM.

Copyright Mettis Link News