Car Financing Declines 25th Month in a Row

Car financing continued to fall 25 months in a row, down 20.1 percent YoY to Rs. 228 billion by the end of July from Rs. 285 billion in the same period last year, data revealed by the State Bank of Pakistan (SBP). As seen in FY24, the cost of cars is still a massive barrier to sales. While some assemblers gave discounts on registration and other charges in the past few months, the overall growth in the sector remains stunted. Meanwhile, personal loans on credit cards surged by 27.5 percent YoY to Rs. 125 billion by end-July 2024. Consumer financing for house building declined by 3.9 percent to Rs. 203 billion by end-July 2024. Overall credit issued to end-users (consumer financing) fell to Rs. 802 billion in July 2024, a 5.8 percent YoY decrease.