Auto financing in Pakistan rises to Rs277bn in June

July 17, 2025 (MLN): Automobile financing in Pakistan has increased to Rs276.61bn in June 2025, witnessing a rise of 1.98% MoM compared to Rs271.24bn recorded in May 2025, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 20%, as in the same period last year, the figure for financing was reported at Rs230.5bn.

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 Rs207.04bn by the end of June 2025, up by 1.7% YoY.

Month-wise, the financing for house building has increased by 2.58% compared to Rs201.83bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs263.02bn, up by 10.23% YoY while down 2% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 13.9% YoY to clock in at Rs913.85bn. Compared to the credit of Rs911.44bn in the previous month, consumer financing has recorded a 0.26% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 12.31% YoY to Rs9.63tr in June 2025.

On a sequential basis, private sector loans reported a rise of 1.66% MoM compared to the credit of Rs9.47tr in May.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.33tr in the review period, up by 10.05% YoY and 0.43% MoM.

The borrowing from the construction sector stood at Rs209.92bn in June, up by 8.85% YoY while down 4.12% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs494.68bn in the month under review, up by 23.4% YoY, and on a sequential basis, the loans to the same sector recorded growth of 6.44% MoM.

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