According to data released by the State Bank of Pakistan (SBP), auto financing fell for 23 consecutive months in the calendar year 2024, down 22.5 percent YoY to Rs. 233 billion by the end of May from Rs. 300 billion in the same period the previous year.
Over the past 11 months, rising automobile prices, high auto finance costs, and declining consumer spending power have all contributed to a decline in auto sales.Automobile costs continue to be a major sales obstacle, as demonstrated in FY23. Although a few assemblers have offered reductions on registration and other fees in recent months, the industry’s general expansion has remained stifled.
By the end of May 2024, personal credit card loans had increased by 28.6% YoY to Rs. 118 billion, consumer funding for home construction had dropped by 3.5 percent to Rs. 205 billion.In May 2024, total credit extended to consumers (consumer financing) dropped to Rs. 801 billion, a 7.4% YoY decline.
