August 20, 2024 (MLN): Automobile financing in Pakistan has dropped to Rs228bn in July 2024, witnessing a fall of 1.09% MoM compared to Rs230.5bn recorded in June 2024, according to the latest data released by the central bank.
On a year-on-year basis, car financing decreased by 20.06%, as in the same period last year, the figure for financing was reported at Rs285.19bn.
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 Rs202.8bn by the end of July 2024, down by 3.94% YoY.
Month-wise, the financing for house building has decreased by 0.39% compared to Rs203.58bn incurred in the previous month.
Meanwhile, financing for personal use clocked in at Rs238.95bn, down by 4.51% YoY while up 0.14% MoM.
Thereby, the overall credit disbursed to consumers registered a decline of 5.78% YoY to clock in at Rs802bn. Compared to the credit of Rs802.35bn in the previous month, consumer financing has recorded a 0.04% MoM drop.
The data released by the central bank further showed that outstanding credit to the private sector rose 3.66% YoY to Rs8.29tr in July 2024.
On a sequential basis, private sector loans reported a drop of 3.27% MoM compared to the credit of Rs8.57tr in June.
Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs4.68tr in the review period, up by 4.62% YoY while down 3.24% MoM.
The borrowing from the construction sector stood at Rs189.42bn in July, down by 0.42% YoY and 1.78% MoM.
Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs395.7bn in the month under review, up by 14.31% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 1.29% MoM.
Copyright Mettis Link News
Posted on: 2024-08-20T11:29:30+05:00
