Auto financing in Pakistan saw its second consecutive year of decline, with outstanding loans dropping to to Rs.228 billion in July 2024 from Rs.230.5 billion in June, according to the State Bank of Pakistan.
Moreover, over the past two years, total outstanding loans have shrunk by Rs138 billion, reflecting a challenging environment for new vehicle financing.
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In addition, consumers have shown a preference for leasing used and locally assembled vehicles through private banks instead of opting for new ones. High loan installments, steep vehicle prices, and SBP’s financing restrictions aimed at curbing the current account deficit have further dampened demand.
