In December 2023, there was a noteworthy decrease in car financing in Pakistan, dropping to Rs251.25 billion. This reflects a significant 25.55% decrease compared to the same time the previous year and a 2.26% drop from the previous month.
This is in sharp contrast to the figures from December 2022, where the amount was Rs333.747 billion, and November 2023, which recorded Rs257.06 billion, as per recent data from the central bank. The trend indicates the eighteenth consecutive monthly decline in automobile financing.
Several factors contribute to this decline, including higher interest rates, a rise in car prices, regulatory restrictions on obtaining loans, and increased taxes on importing automobiles and their components. These factors collectively affect the overall landscape of the automotive financing sector in Pakistan. The continuous drop in these figures suggests a challenging period for individuals seeking financial assistance for purchasing vehicles in the country.
