In December 2024, automobile financing in Pakistan rose slightly to Rs235.45 billion, marking a 0.35% increase from November 2024, according to the central bank.
However, compared to December 2023, it saw a 6.3% decline. This drop is linked to higher interest rates, rising car prices, stricter loan requirements, and increased taxes on imported vehicles.
Meanwhile, consumer financing for home construction decreased by 4.04% year-on-year. On the other hand, personal loans experienced significant growth, rising by 16.61% compared to the previous year. Overall, consumer credit in Pakistan increased by 6.08% year-on-year, reaching Rs867.97 billion by the end of 2024.
Private sector borrowing also showed notable growth, rising 24% year-on-year. Among private sector loans, the manufacturing and construction industries were the key drivers of this increase, indicating strong activity in these sectors.
These trends highlight the challenges and opportunities in Pakistan’s credit landscape. While the auto financing sector struggles due to economic pressures, other areas like personal loans and private sector financing are showing resilience and growth.
