Car financing drops 20.06 per cent in one year due to high prices

WEB DESK: Car financing in Pakistan has experienced a notable decline, falling to Rs228 billion in July 2024.

This marks a 1.09 per cent decrease from the Rs230.5 billion recorded in June 2024, according to recent figures from the State Bank of Pakistan (SBP).

On a year-on-year basis, the drop is even more pronounced, with car financing plummeting by 20.06 per cent from Rs285.19 billion in July 2023.

This significant reduction is attributed to several factors: rising interest rates, higher vehicle prices, tighter loan acquisition regulations, and increased taxes on imported automobiles and their parts.

In addition, the SBP’s data highlights a downturn in consumer financing for house construction. By the end of July 2024, this category amounted to Rs202.8 billion, reflecting a 3.94 per cent decrease compared to the same period last year.

Month-on-month, there was a slight reduction of 0.39 per cent from Rs203.58 billion in June.

Conversely, personal financing reached Rs238.95 billion. Although this figure shows a 4.51 per cent decrease year-on-year, it experienced a modest rise of 0.14 per cent from the previous month.

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