The State Bank of Pakistan (SBP) changed the rules for consumer loans and shortened the loan period for auto loans on Tuesday.
Under the new rules, auto loans can only be used for a maximum of three years instead of five. This will be true for cars with more than 1000cc.
The length of auto loans has been cut from seven years to five years for cars with up to 1000cc of engine size.
This step will help slow the growth of demand in the economy, which will slow the growth of imports and help the balance of payments.
According to the most recent SBP data, car loans in Pakistan went up by only Rs3 billion, to Rs367 billion in April 2022.