Bank Loans for Buying Cars Down 10.7% in October 2024

Car financing increased by Rs. 8 billion by the end of October to Rs. 236 billion compared to Rs. 228 billion in the previous month, data revealed by the State Bank of Pakistan (SBP). However, auto financing decreased by Rs. 28 billion or 10.7 percent compared to Rs. 264 billion in October 2023. The overall growth in the sector remains stunted despite some improvement in consumer inflation seen this fiscal year. The cost of cars is still a massive barrier to sales. Meanwhile, personal loans on credit cards surged by 27 percent YoY to Rs. 134 billion by October 2024. Consumer financing for house building declined by 2.6 percent to Rs. 201 billion during the period in review. Overall credit issued to end-users (consumer financing) improved to Rs. 861 billion in October 2024, a 3.8 percent YoY decrease.