Auto Financing Plunges for the Ninth Time in a Year

Image: PakWheeks.com

The auto financing dropped to Rs 317 billion in March as compared to Rs. 363.55 billion in the same month last year. This indicates a plunge of 12.83% for the ninth time in a year.

In February, a drop of 2.4% was recorded bringing the figures to Rs. 325 billion, as quoted by the State Bank of Pakistan.

Increase in interest rates, automobile prices and plant shutdowns have resulted in vehicle delivery delays. On top of it, the soaring petroleum prices and other measures taken by the State Bank of Pakistan have also contributed toward the reduced pace of auto financing in Pakistan.

Head of Research at Ismail Iqbal Securities, Fahad Rauf, said, “I think the share of auto financing in total car sales is now almost zero as compared to 30-40pc previously.”