Car Financing Falls 26th Month in a Row

Car financing continued to fall 26 months in a row, down 18.3 percent YoY to Rs. 227 billion by the end of August from Rs. 278 billion in the same period last year, data revealed by the State Bank of Pakistan (SBP). Compared to July 2024, auto financing has declined by roughly Rs. 700 million. The overall growth in the sector remains stunted despite some improvement in consumer inflation and a cooling effect in the central bank’s key lending rate. Meanwhile, personal loans on credit cards surged by 24.5 percent YoY to Rs. 128 billion by August 2024. Consumer financing for house building declined by 3.4 percent to Rs. 202 billion during the period in review. Overall credit issued to end-users (consumer financing) fell to Rs. 804 billion in August 2024, a 4.9 percent YoY decrease.