Karachi July 26 2021: Auto financing crossed the PKR 300 billion mark for the first time in country’s history. During FY 2021, Auto financing grew by 45.9 percent to PKR 308 billion as compared to PKR 211 billion in FY 2020, as per data of State Bank of Pakistan.
In absolute terms auto financing grew by PKR 97 billion SBP data indicates
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This phenomenal growth in auto financing is attributable to low interest rates, rising prices of passenger cars, which affected consumer capacity to buy on cash; and new entrants in the automobile sector, which provided wider options to the consumers. This growth in auto financing is consistent with an across the board increase in the sales of auto assemblers during the current fiscal year. In particular, small segment cars and jeeps in the higher demand.