Auto Financing Climbs to Rs286b, Marks 25-Month High

KARACHI:

Auto financing in Pakistan touched Rs286 billion in July 2025, the highest level in over two years, Azee News learnt from official data sources. The latest figures show a 25% rise compared with the same month last year, reflecting improving demand for cars as borrowing costs ease.

Despite this recovery, the total remains about 22% below the historic peak of Rs368 billion recorded in 2022, when vehicle demand and consumer lending were at their strongest. Sources said the rebound is being supported by lower financing rates, a stable rupee, and better supply of vehicles.

Market observers believe the revival could strengthen auto sector sentiment and lift sales for assemblers and parts makers in the coming quarters. However, they cautioned that continued stability in policies, further interest rate cuts, and stronger consumer purchasing power will be key to sustaining momentum.

Industry insiders noted that while conditions are improving, challenges such as limited forex reserves, IMF-linked measures, and inconsistent import policies still weigh on the sector’s long-term growth.