KARACHI: After a reduction in interest rates, banking deposits in Pakistan have started to decline.
According to a State Bank of Pakistan (SBP) report, deposits decreased by Rs226 billion from September 2024 to October 2024, dropping to Rs31,116 billion.
This marks a decline from the record-high deposits of Rs31,342 billion recorded in September 2024.
Despite this monthly decline, year-on-year data shows a 17.90% increase in deposits compared to October 2023, when the total deposits were significantly lower.
In related developments, the 24NewsHD TV channel reported on November 27, 2024, that SBP data also indicated a 3.7% rise in auto financing amid falling interest rates. Auto financing rebounded in September 2024 after a 27-month decline.
Auto financing had peaked at Rs 368 billion in June 2022 before declining due to high interest rates. However, with the SBP reducing rates from 22% to 15% by November 2024, auto financing saw signs of recovery.
Vehicle sales, including cars, SUVs, vans, and pickups, surged by 50% in the first four months of FY25, reaching 40,693 units. This growth was fuelled by price discounts from local assemblers and fixed-rate auto financing options offered by private banks.
