There has been a discernible decrease in bank borrowing throughout Pakistan as a result of growing inflation and a drop in buying power.
Recent data from the State Bank of Pakistan (SBP) indicates a considerable decline in the trend of taking out loans for personal purposes, residences, and cars.
According to the data, the total loans taken out for the purchase of cars fell to Rs228 billion in July 2024, from Rs285 billion in July 2023. This represents a 20% decrease. The financial burden that rising inflation is placing on consumers is reflected in this dramatic decline.
In a similar vein, home loan demand declined. Loans for home purchases totaled Rs203 billion in July 2024, a 4% decrease from the same month the year before.
