Auto financing in Pakistan rises to Rs294bn in August

September 16, 2025 (MLN): Automobile financing in Pakistan has increased to Rs294.08bn in August 2025, witnessing a rise of 2.95% MoM compared to Rs285.64bn recorded in July 2025, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 29.38%, as in the same period last year, the figure for financing was reported at Rs227.3bn.

This decline is mainly attributed to higher interest rates, an increase in car prices, regulative curbs for acquiring loans, and higher taxes on the import of automobiles and their parts.

Going by the data provided by the State Bank of Pakistan (SBP), consumer financing for house building stood at Rs211.29bn by the end of August 2025, up by 4.39% YoY.

Month-wise, the financing for house building has increased by 1.35% compared to Rs208.48bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs263.47bn, up by 10.44% YoY and 0.07% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 17.71% YoY to clock in at Rs946.32bn. Compared to the credit of Rs928.94bn in the previous month, consumer financing has recorded a 1.87% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 15.05% YoY to Rs9.48tr in August 2025.

On a sequential basis, private sector loans reported a rise of 0% MoM compared to the credit of Rs9.48tr in July.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.14tr in the review period, up by 10.88% YoY while down 1.08% MoM.

The borrowing from the construction sector stood at Rs213.87bn in August, up by 11.32% YoY while down 1.04% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs515.23bn in the month under review, up by 30.29% YoY, and on a sequential basis, the loans to the same sector recorded growth of 0.53% MoM.

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