Karachi June 20 2023: Car financing in Pakistan decline for the eleventh straight month during May 2023 to hit lowest level since June 2021, as the latest data released by the State Bank of Pakistan.
The pace of decline in Auto financing has gathered pace during the last three months which was reflected by reduction of PKR 8.6 billion in May, PKR 7.8 billion in April and PKR 8.9 billion in March against average decline of PKR 6.1 billion from July to May 2023.
During the month of May 2023, car loans witnessed decrease of 2.79 percent when compared with the previous month. The main reason for decline in Auto Financing could be unprecedented increase in policy rate to 21 percent by SBP, tightening of financing rules by Central Bank and abnormal surge in car prices over the period of last five months.
During first 11 months of fiscal year 2023, Auto financing decreased by PKR 67.4 billion from disbursement of PKR 368 billion at June 2022.
As per the latest data shared by Pakistan Automotive Manufacturers Association (PAMA), car sales plunged by 77 percent year on year during the month of May 2023.
