Car Financing Rises by Rs. 8 Billion, but Auto Financing Drops 10.7% YoY: SBP Data
Data released by the State Bank of Pakistan (SBP) reveals that car financing in the country increased by Rs. 8 billion by the end of October 2024, reaching a total of Rs. 236 billion, up from Rs. 228 billion in the previous month.
However, auto financing as a whole decreased by Rs. 28 billion or 10.7% when compared to October 2023, where the figure stood at Rs. 264 billion. This decline indicates that while there was an overall increase in car financing, demand for auto loans has remained weak, reflecting ongoing challenges in the sector.
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Despite some improvements in consumer inflation this fiscal year, the cost of cars remains a significant barrier, stunting growth in the sector.
Other Key Consumer Financing Trends
- Personal loans on credit cards saw a significant surge, increasing by 27% YoY to reach Rs. 134 billion by October 2024.
- Consumer financing for house building saw a 2.6% decline, dropping to Rs. 201 billion during the same period.
- Overall consumer financing, including all sectors, stood at Rs. 861 billion in October 2024, showing a 3.8% YoY decrease.
While there has been some improvement in certain segments like credit card loans, the overall consumer financing sector has faced challenges, especially in the auto and housing sectors. The situation reflects ongoing economic pressures despite some positive inflationary trends.
