Auto financing in Pakistan rises to Rs328bn in January

February 16, 2026 (MLN): Automobile financing in Pakistan has increased to Rs328bn in January 2026, witnessing a rise of 2.79% MoM compared to Rs319.08bn recorded in December 2026, according to the latest data released by the central bank.

On a year on year basis, car financing increased by 35.76%, as in the same period last year, the figure for financing was reported at Rs241.6bn.

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 Rs221.95bn by the end of January 2026, up by 11.02% YoY.

Month-wise, the financing for house building has increased by 0.75% compared to Rs220.31bn incurred in the previous month.

Meanwhile, financing for personal use clocked in at Rs274.86bn, up by 8.66% YoY and 2.56% MoM.

Thereby, the overall credit disbursed to consumers registered a rise of 20.55% YoY to clock in at Rs1.02tr. Compared to the credit of Rs997.94bn in the previous month, consumer financing has recorded a 1.99% MoM rise.

The data released by the central bank further showed that outstanding credit to the private sector rose 6.56% YoY to Rs10.34tr in January 2026.

On a sequential basis, private sector loans reported a drop of 3.09% MoM compared to the credit of Rs10.67tr in December.

Under the credit to the private sector, the loans to the manufacturing sector clocked in at Rs5.64tr in the review period, down by 0.8% YoY and 3.74% MoM.

The borrowing from the construction sector stood at Rs215.81bn in January, up by 1.54% YoY while down 1.61% MoM.

Going forward, the data further shows that loans to the agriculture, forestry, and fishing sectors rose to Rs601.35bn in the month under review, up by 36.25% YoY, and on a sequential basis, the loans to the same sector recorded a fall of 2.68% MoM.

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