Auto financing in Pakistan plunges for seventh consecutive month
Business
The decline in auto loans is apparently due to high interest rates
LAHORE (Web Desk) - The amount of outstanding auto loans plunged for the seventh consecutive month at the end of January this year.
The decline in auto loans is apparently due to high interest rates.
A data released by the State Bank of Pakistan (SBP) shows that the outstanding auto financing stood at Rs332 billion at the end of last month, which is 5.7 per cent lower than the January 2022 figure of Rs352.24bn and 1.6pc down than its December 2022 level.
The auto financing had been facing downward trend due to frequent interest rate hike and strict SBP measures to slow down auto demand to bring down import bill of parts and accessories.
As a whole car, SUVs, jeeps and pickups sales had already registered a drop of 40pc in 7MFY23 to 94,296 units.
