Macro Analysis /

Pakistan Economy – Regulatory tightening hits auto financing

  • The SBP once again revised Prudential Regulations (PRs) for auto-financing to moderate imports and demand growth

  • The revised PRs are negative for the Auto Industry and for PSMC especially due to the impact on lower income class

  • The PRs further dampen the sales outlook; according to channel checks sales are expected to decline by at least c 15%

Abdul Ghani Mianoor
Intermarket Securities
24 May 2022


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