Auto financing continued to decline for the 23rd consecutive month in calendar year 2024, down 22.5% year over year to $233 billion through the end of May.
This is revealed by the latest data released by the State Bank of Pakistan (SBP).
Over the past 11 months, car market sales have been affected by rising car prices, expensive car financing and declining consumer purchasing power.
As seen from FY 23-24, the cost of cars remains a significant barrier to sales. Some aggregators offer discounts on registration and other fees in the coming months, but overall industry growth remains limited.
Meanwhile, personal loans on credit cards rose 28.6% YoY to $118 billion at the end of May. Consumer financing for home construction fell 3.5% to $205 billion through the end of May.
The amount of credit to end users (consumer financing) decreased to $ 801 billion in May 2024, a decrease of 7.4 percent.