Car financing rises to Rs360bn in April

May 18, 2026 (MLN): Automobile financing in Pakistan rose to Rs359.58 billion in April 2026, registering an increase of 4.12% MoM compared to Rs345.34bn recorded in March 2026, according to the latest data released by the State Bank of Pakistan (SBP).

On a yearly basis, car financing surged 36.56% against Rs263.31bn recorded in the corresponding period last year.

Despite the recent uptick, financing activity continues to remain under pressure due to elevated interest rates, higher automobile prices, regulatory restrictions on auto loans, and increased taxes on the import of vehicles and auto parts.

According to SBP data, consumer financing for house building and renovation stood at Rs234.76bn at the end of April 2026, reflecting an increase of 16.79% YoY.

On a monthly basis, housing finance increased 3.19% compared to Rs227.51bn recorded in the previous month.

Meanwhile, personal loans amounted to Rs278.52bn, up 3.81% YoY, though slightly lower by 0.62% MoM.

As a result, total consumer financing rose 20.53% YoY to Rs1.07 trillion. On a sequential basis, consumer credit increased 1.43% from Rs1.06tr recorded in March 2026.

Separately, outstanding credit to the private sector increased 11.77% YoY to Rs10.64tr in April 2026.

However, on a month-on-month basis, private sector credit declined 0.41% compared to Rs10.69tr in the preceding month.

Within private sector credit, loans extended to the manufacturing sector stood at Rs5.8tr during the review period, up 7.65% YoY, though down 0.92% MoM.

Borrowing by the construction sector fell to Rs210.63bn in April, marking a decline of 2.6% YoY and 3.14% MoM.

Meanwhile, credit disbursed to the agriculture, forestry, and fishing sectors increased to Rs594.89bn during the month under review, reflecting a rise of 29% YoY. On a monthly basis, lending to the sector edged up 0.27%.