Islamabad, Sep 19: Car financing in Pakistan has continued its downward trend for the 26th consecutive month, showing an 18.3 percent year-on-year (YoY) drop to Rs. 227 billion by the end of August 2024, down from Rs. 278 billion in the same period last year, according to data from the State Bank of Pakistan (SBP).
This reflects a roughly Rs. 700 million declines compared to July 2024, highlighting the stagnation in the auto sector despite improvements in consumer inflation and adjustments to the central bank’s lending rate.
In contrast, personal loans on credit cards surged 24.5 percent YoY to Rs. 128 billion by August 2024, indicating growing reliance on credit card financing. However, consumer financing for house building saw a 3.4 percent decline, falling to Rs. 202 billion.
Overall, total consumer financing dropped to Rs. 804 billion in August 2024, marking a 4.9 percent YoY decrease. This continued decline in financing across various sectors underscores the broader economic challenges facing Pakistan’s consumer credit landscape.
