Pakistan Auto Financing Surges to Rs294 Billion

Automobile financing in Pakistan soared to Rs294.08 billion in August 2025, reflecting a 2.95% month-on-month (MoM) surge from Rs285.64 billion in July 2025. On a year-on-year (YoY) scale, car financing skyrocketed by 29.38% compared to Rs227.3 billion in the prior year's equivalent period.

This uptick persists amid hurdles like elevated interest rates, ballooning car prices, tightened loan acquisition regulations, and steeper taxes on imported automobiles and parts.

In parallel consumer financing domains, house building financing hit Rs211.29 billion by August's end, boasting a 4.39% YoY climb and a 1.35% MoM gain. Personal financing reached Rs263.47 billion, with a robust 10.44% YoY increase and a marginal 0.07% MoM uptick.

Aggregate consumer credit disbursed totaled Rs946.32 billion, signaling a 17.71% YoY expansion and a 1.87% MoM rise from Rs928.94 billion in July 2025.

The figures further indicate that outstanding credit to the private sector escalated 15.05% YoY, amounting to Rs9.48 trillion in August 2025, though it held steady on a MoM basis.

Loans to the manufacturing sector stood at Rs5.14 trillion, advancing 10.88% YoY yet dipping 1.08% MoM. The construction sector secured Rs213.87 billion, up 11.32% YoY but down 1.04% MoM.

Moreover, loans to the agriculture, forestry, and fishing sectors climbed to Rs515.23 billion, surging 30.29% YoY alongside a 0.53% MoM increment.