Auto financing in Pakistan rises to Rs286bn in July

August 26, 2025 (MLN): Automobile financing in Pakistan has increased to Rs285.64bn in July 2025, witnessing a rise of 3.27% MoM compared to Rs276.61bn recorded in June 2025, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 25.28%, as in the same period last year, the figure for financing was reported at Rs228bn.

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 Rs208.48bn by the end of July 2025, up by 2.8% YoY.

Month-wise, the financing for house building has increased by 0.69% compared to Rs207.04bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs263.27bn, up by 10.18% YoY and 0.21% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 15.83% YoY to clock in at Rs928.94bn. Compared to the credit of Rs913.54bn in the previous month, consumer financing has recorded a 1.69% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 14.38% YoY to Rs9.48tr in July 2025.

On a sequential basis, private sector loans reported a drop of 1.94% MoM compared to the credit of Rs9.67tr in June.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.19tr in the review period, up by 10.96% YoY while down 2.99% MoM.

The borrowing from the construction sector stood at Rs216.13bn in July, up by 14.1% YoY and 2.75% MoM.

The data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs512.51bn in the month under review, up by 29.52% YoY, and on a sequential basis, the loans to the same sector recorded growth of 3.59% MoM.

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