Friday September 24, 2021

Banks Will No Longer Finance Imported Vehicles

KARACHI: With an aim to slow down import growth and put the brakes on the ballooning trade and current deficits, the State Bank of Pakistan (SBP) has revised prudential regulations (PRS) for consumer financing, reducing the loan limit and period for imported vehicles.

“The changes in the PRs effectively prohibit financing for imported vehicles, and tighten regulatory requirements for financing of domestically manufactured/ assembled vehicles of more than 1000 cc engine capacity and other Consumer Finance facilities like personal loans and credit cards,” the central bank said in a statement.

“This targeted step will help to moderate demand growth in the economy, leading to slower import growth and thus supporting the balance-of-payments.”

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