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Car financing in Pakistan drops 1.56% MoM to Rs236bn in April

Car sales double in May 2024
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May 20, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs235.69bn in April 2024, witnessing a fall of 1.56% MoM compared to Rs239.44bn recorded in March 2024, according to the latest data released by the central bank.

This marks the 22nd consecutive monthly decline in car financing in the country.

On a year-on-year basis, car financing decreased by 23.75%, as in the same period last year, the figure for financing was reported at Rs309.1bn.

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 Rs205.93bn by the end of April 2024, down by 3.34% YoY.

Month-wise, the financing for house building has increased by 0.08% compared to Rs205.76bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs238.1bn, down by 4.81% YoY and 1.63% MoM.

Thereby, the overall credit disbursed to consumers registered a decline of 7.51% YoY to clock in at Rs802.62bn. Compared to the credit of Rs807.13bn in the previous month, consumer financing has recorded a 0.56% MoM drop.

The data released by the central bank further showed that outstanding credit to the private sector rose 1.48% YoY to Rs8.38tr in April 2024.

On a sequential basis, private sector loans reported a drop of 0.29% MoM compared to the credit of Rs8.41tr in March.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.81tr in the review period, up by 2.76% YoY while down 0.5% MoM.

The borrowing from the construction sector stood at Rs195.96bn in April, up by 0.73% YoY and 0.79% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs387.21bn in the month under review, up by 14.09% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 1.26% MoM.

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Posted on: 2024-05-20T15:15:50+05:00