Car Financing in Pakistan Sets Record in July
One of the key factors in high spending on cars is the savings from traveling amid covid-19 pandemic situation and low-interest rates
With lower prices and interest rates in Pakistan, car financing increased by a whopping Rs 99 billion in July to reach the figure of Rs 314 billion in the past one year.
In terms of percentage, the increase is 46% in the first month of the fiscal year 2021-2022 (FY22).
The rise is being seen as a result of a slash in interest rates for car financing.
State Bank of Pakistan (SBP) had cut the benchmark interest rate to 7% in March-June 2020.
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Auto Financing in Pakistan saw successive growth from June 2020 to July 2021.
In the meantime, the local car manufacturers also witnessed astronomical growth in sales in July as the figures registered a 104% increase as compared to June.
One of the key factors in the high spending on cars is the covid-19 pandemic situation as the people who could not travel due to restrictions spent savings on vehicles, the investment experts said.
