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Auto Financing in Pakistan Climbs to Rs294bn in August 2025

September 16, 2025

Auto financing in Pakistan continued its upward momentum, reaching Rs294.08 billion in August 2025, marking a 2.95% month-on-month (MoM) increase from Rs285.64 billion in July, as per the latest data released by the State Bank of Pakistan (SBP).

On a year-on-year (YoY) basis, car financing surged by 29.38%, compared to Rs227.3 billion recorded in August 2024.

Despite rising demand, industry analysts note that the growth trend has been tempered by higher interest rates, increasing car prices, stricter regulatory conditions for auto loans, and higher taxes on automobile imports and parts.

Consumer Financing Snapshot (August 2025)

·        House building loans: Rs211.29bn (↑ 1.35% MoM, ↑ 4.39% YoY)

·        Personal loans: Rs263.47bn (↑ 0.07% MoM, ↑ 10.44% YoY)

·        Overall consumer financing: Rs946.32bn (↑ 1.87% MoM, ↑ 17.71% YoY)

Private Sector Credit Trends

·        Total private sector credit: Rs9.48tr (↑ 15.05% YoY, stable MoM)

·        Manufacturing sector loans: Rs5.14tr (↑ 10.88% YoY, ↓ 1.08% MoM)

·        Construction sector loans: Rs213.87bn (↑ 11.32% YoY, ↓ 1.04% MoM)

·        Agriculture, forestry & fishing loans: Rs515.23bn (↑ 30.29% YoY, ↑ 0.53% MoM)

The steady rise in financing reflects both resilient consumer demand and credit expansion across key sectors, even as economic headwinds and policy measures continue to influence borrowing patterns.


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