Auto financing declines

Amid a downward trajectory in the interest rates, auto financing declined for the 26th consecutive month to Rs227.3 billion in August from Rs228bn in July. As per the State Bank of Pakistan (SBP) data, the outstanding auto loan registered a massive fall of Rs140.7bn from Rs368bn in June 2022. The State Bank of Pakistan (SBP) reduced the interest rate for the first time in nearly three years to 20.5 per cent on June 10 from an unprecedented 22pc. This was followed by a further reduction to 19.5pc on July 29 and then to 17.5pc on Sept 12, thus bringing a ray of hope for the revival of auto sales.