Islamabad, Nov 27: Car financing in Pakistan has seen an increase of Rs. 8 billion, reaching Rs. 236 billion by the end of October 2024, up from Rs. 228 billion in the previous month, as per data from the State Bank of Pakistan (SBP). However, compared to October 2023, auto financing decreased by Rs. 28 billion or 10.7 percent, down from Rs. 264 billion.
Despite some improvement in consumer inflation, the growth in the auto financing sector remains sluggish, primarily due to the high cost of vehicles, which continues to be a significant barrier for potential buyers.
Key Trends:
- Personal Loans on Credit Cards: Personal loans, primarily through credit cards, surged by 27 percent YoY, reaching Rs. 134 billion by October 2024.
- Consumer Financing for House Building: Financing for house construction declined by 2.6 percent, totaling Rs. 201 billion.
- Overall Consumer Financing: Total credit issued for consumer financing amounted to Rs. 861 billion in October 2024, showing a 3.8 percent YoY decrease.
These figures highlight mixed trends in consumer financing, with growth in some sectors, like personal loans on credit cards, while others, including car financing, remain under pressure due to high costs and economic challenges.
