Karachi September 24 2023: Credit card financing in Pakistan experienced a historic surge, surpassing PKR 100 billion for the first time, with a remarkable increase of more than PKR 5 billion, according to the most recent data from the State Bank of Pakistan.
On the other hand, consumer financing faced its ninth consecutive monthly decline in August 2023, dropping to PKR 845 billion, a level last observed in February 2022. Specifically, consumer financing decreased by PKR 5.6 billion or 0.7 percent on a month-to-month basis, reaching PKR 845 billion in August 2023.
Consumer financing entered a negative growth phase as the State Bank of Pakistan maintained a historically high policy rate of 22 percent to temper economic activity and address the current account deficit.
Auto financing experienced the most significant decline, falling by 2.5 percent or PKR 7.1 billion in August 2023 to reach PKR 278 billion, the lowest level since March 2021.
House building financing also decreased by 0.8 percent or PKR 1.6 billion to PKR 209 billion in August 2023 compared to the previous month.
Loans disbursed under the personal financing category declined by PKR 2.1 billion or 0.8 percent in August 2023, amounting to PKR 248 billion.
Consumer durable loans saw a modest 0.2 percent decrease, equivalent to PKR 15 million, with a total of PKR 6.9 billion at the end of August 2023. This marks the third consecutive monthly decline in bank advances for consumer durables.
However, credit card loan facility disbursements increased by 5.2 percent, or PKR 5.1 billion, on a month-to-month basis, reaching PKR 102.9 billion by the end of August 2023.
