June 21, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs232.79bn in May 2024, witnessing a fall of 22.52% YoY as compared to Rs300.44bn recorded in May 2023, according to the latest data released by the central bank.

On a month-on-month basis, car financing decreased by 1.23% MoM, as in the previous month, the figure for financing was reported at Rs235.69bn.

This marks the 23rd consecutive monthly decline in car financing in the country.

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 Rs205.3bn by the end of May 2024, down by 3.5% YoY.

Month-wise, the financing for house building has decreased by 0.31% compared to Rs205.93bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs237.57bn, down by 5.78% YoY and 0.22% MoM.

Thereby, the overall credit disbursed to consumers registered a decline of 7.35% YoY to clock in at Rs801.1bn. Compared to the credit of Rs802.62bn in the previous month, consumer financing has recorded a 0.19% MoM drop.

The data released by the central bank further showed that outstanding credit to the private sector rose 4.24% YoY to Rs8.41tr in May 2024.

On a sequential basis, private sector loans reported a rise of 0.29% MoM compared to the credit of Rs8.38tr in April.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.79tr in the review period, up by 5.94% YoY while down 0.35% MoM.

The borrowing from the construction sector stood at Rs195.9bn in May, up by 2.73% YoY while down 0.03% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs385.13bn in the month under review, up by 13.96% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 0.54% MoM.

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Posted on: 2024-06-21T10:37:16+05:00