Auto financing increases on low rates
Auto financing increased for the second consecutive month by 3.7 per cent month-on-month to Rs236 billion in October compared to Rs227.541bn in September and Rs227.296bn in August thanks to falling interest rates. However, the outstanding loans plunged by 10.7pc year-on-year, according to data released by the State Bank of Pakistan (SBP). In September, auto financing was revived after 27 months. In June 2022, it peaked at Rs368bn, but high interest rates had kept auto financing under pressure. The SBP started reducing interest rates from June 10, slashing to 20pc from 22pc followed by a further reduction to 19.5pc on July 29, 17.5pc on Sept 12 and 15pc on Nov 4.