Automobile finance in Pakistan increased by 0.9 percent MoM to Rs367 billion in April 2022, despite rising car costs and higher loan rates, according to Central Bank data released today.
Auto finance climbed by 25% year on year to Rs293 billion in April 2021, owing to increased consumer demand sparked by the introduction of new models and brands by new entrants, particularly in the category of cars with engines larger than 1,000cc.
Notably, passenger automobile sales increased by 29% YoY in April 2022, reaching 18,625 units compared to 14,435 units in April 2021. Car sales fell 18 percent MoM as a result of price increases brought on by PKR depreciation and increasing fuel prices.
According to SBP data, bank funding for home construction reached a new high of Rs179 billion by the end of April 2022, an increase of 87 percent YoY and 5 percent MoM, owing mostly to SBP policies to boost housing and building construction in the country. Finance for personal use was valued at Rs245 billion, up 6.2 percent year on year and 1.4 percent month on month.
This brings the total credit issued to consumers to Rs866.5 billion in April 2022, up 28 percent year on year and 1.76 percent month on month.