Auto financing in Pakistan rises to Rs319bn in December

January 16, 2026 (MLN): Automobile financing in Pakistan has increased to Rs319.08bn in December 2026, witnessing a rise of 0.33% MoM compared to Rs318.03bn recorded in November 2026, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 35.52%, as in the same period last year, the figure for financing was reported at Rs235.45bn.

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 Rs220.31bn by the end of December 2026, up by 10.3% YoY.

Month-wise, the financing for house building has increased by 2.79% compared to Rs214.32bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs268bn, down by 5.97% YoY and 0.32% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 14.97% YoY to clock in at Rs997.94bn. Compared to the credit of Rs987.2bn in the previous month, consumer financing has recorded a 1.09% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 0.85% YoY to Rs10.67tr in December 2026.

On a sequential basis, private sector loans reported a rise of 8.27% MoM compared to the credit of Rs9.86tr in November.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.86tr in the review period, down by 6.14% YoY while up 10.35% MoM.

The borrowing from the construction sector stood at Rs219.34bn in December, up by 0.27% YoY and 7.95% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs617.91bn in the month under review, up by 34.09% YoY, and on a sequential basis, the loans to the same sector recorded growth of 12.04% MoM.

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