Car financing increased by Rs. 245 million by the end of September to Rs. 228 billion, data revealed by the State Bank of Pakistan (SBP). This marks the first increase in 27 months, attributed primarily to a decline in interest rates, according to Arif Habib Limited.

Despite this increase, auto financing has seen a decline of approximately 16 percent compared to September 2023. The sector’s overall growth remains sluggish, even with some improvements in consumer inflation and a reduction in the central bank’s key lending rate.

In contrast, personal loans on credit cards have surged significantly, with a year-on-year increase of 27.6 percent, reaching Rs. 132 billion by September 2024.

However, consumer financing for house building experienced a decline of 3.1 percent, falling to Rs. 202 billion during the same period.

Overall, credit issued to end-users, encompassing all forms of consumer financing, decreased to Rs. 809 billion in September 2024, marking a 3.6 percent year-on-year decline.