Data from the State Bank of Pakistan (SBP) shows that the amount of outstanding auto loans fell dramatically, from Rs368 billion in June 2022 to Rs140.7 billion.
On June 10, the State Bank of Pakistan (SBP) lowered the interest rate from a historic 22 percent to 20.5%, marking the first decrease in nearly three years. There was some hope for the recovery of auto sales after this, since it was followed by further reductions to 19.5 percent on July 29 and subsequently to 17.5 percent on September 12.
In addition, private banks have made attractive offers to prospective customers despite declining interest rates. A few appear to have had some success, as August’s decline in the amount of vehicle loans was less concerning than prior months.
